Managing strata repairs and capital works
Minor repairs can generally be managed by the strata manager or strata committee without a meeting. Major or unplanned repairs may need a meeting to get an agreement on what to do.
Key information
- Minor repairs can generally be managed by the strata manager or strata committee without a meeting.
- Owners are responsible for repairs within their property.
- Major or unplanned repairs may need a meeting to get an agreement on what to do.
- Get multiple quotes for any work, to make sure you're getting value for money.
- This information is provided by NSW Fair Trading.
Who makes repairs?
The owners corporation and strata committee must repair and maintain common property.
Property owners repair anything within their property, as long as it is not part of common property.
Owners are responsible for telling the strata committee or strata manager if a common property repair is needed.
What is common property?
Different strata schemes will have different areas that are classed as common property.
Generally, common property will be any areas for communal use or anything of structural importance. For example, driveways and gardens, roofs, pipes, cables and external walls.
You should find out what are the common property areas in your scheme. You can do this by checking your strata plan.
The NSW Government has also developed a prescribed ‘common property memorandum’. This is a template document for what is and isn’t considered common property, and who is responsible for repairs.
However, it won’t officially apply in your scheme unless you have passed a by-law to use it.
Check your by-laws to see if your scheme has adopted the common property memorandum (PDF 46.54KB).
To get a copy of the strata plan contact your secretary or strata manager.
Alternatively, you can pay a fee to get the strata plan from NSW Land Registry Services.
What if I don’t have a common property memorandum?
If you do not have a common property memorandum, your strata scheme can pass a special resolution to use the ‘prescribed common property memorandum’ to add it to your by-laws. The ‘prescribed common property memorandum’ is a document developed by the NSW Government for what is and isn’t common property.
You cannot change the prescribed memorandum, except to:
- take out things that do not apply to your scheme (like a pool).
- reflect current changes from common property by-laws in the scheme.
Managing major repairs
The capital works fund (also known as the sinking fund) is used to pay for major repairs and maintenance to common property. For example, repainting the outside of the building or installing a pool in the common area.
You must plan ahead to have enough money in the fund to cover major repairs as part of the 10-year capital works plan. However, unexpected repairs can happen.
There is a different process to follow for planned and unplanned repairs.
Planned repairs and maintenance
Planned repairs or maintenance for certain items is approved at each AGM. They can be organised by the strata committee, strata manager or building manager.
You may need a strata committee meeting to arrange the work (for example, to approve which contractor will perform the maintenance or repairs).
Some owners corporations set out spending limits for repairs. Check your by-laws to see if this is the case in your scheme, and what your spending limit is.
Get quotes
As a first step, you will need to get quotes for the repair job. For schemes with more than 100 lots, the owners corporations must get at least two quotes for items over $30,000.
Approve the quote
The owners corporation or strata committee will then need to approve the preferred quote and supplier.
Remember to check that the supplier:
- is qualified and/or licensed to do the work. You can use the licence check to make sure
- has the right insurance. Learn more about the right insurance
- prepares the right type of contract for the job. Learn more about contracts.
Repairs are done
Once the repairs are done, you should check that the work has been finished to a high standard.
You will then need to approve the invoice to be paid.
Unplanned repairs
Unexpected repairs can happen.
If you need to pay for an unexpected repair, you should first check your scheme’s insurance. Some costs for unplanned repairs can be covered by the right insurance.
Otherwise, the strata committee or owners corporation will need to hold a meeting to decide how to pay for the repair. If there is not enough money in the capital works fund to cover the cost, the owners corporation may need to borrow money, or introduce a ‘special levy’.
A ‘special levy’ is a one-off or ongoing levy owners must pay (on top of their normal levies) to cover the cost of unexpected repairs or events.
A special levy can be approved by a simple majority vote at an owners corporation meeting. Learn more about how to run a strata meeting.
Managing minor repairs
Minor repairs to common property can often be managed by the strata committee, strata manager or building manager without the need for a meeting.
Some minor repairs that need to be done often (generally more than once per year) are considered ‘general maintenance’ and can be paid for using the administrative fund. Examples include replacing a common property light bulb or fixing a leaking tap in the shared laundry.
Get quotes
As a first step, you will need to get quotes for the repair job. For schemes with more than 100 lots, the owners corporations must get at least two quotes for items over $30,000.
Approve the quote
The owners corporation or strata committee will then need to approve the preferred quote and supplier.
Remember to check that the supplier:
- is qualified and/or licensed to do the work. You can use the licence check to make sure
- has the right insurance. Learn more about the right insurance
- prepares the right type of contract for the job. Learn more about contracts.
Repairs are done
Once the repairs are done, you should check that the work has been finished to a high standard. You will then need to approve the invoice to be paid.
Managing defects
New buildings
Defects in new residential buildings four storeys or higher can be fixed by using money from a ‘building bond’ paid by the developer to NSW Fair Trading.
A building is ‘new’ if it is within two years from the date that building work was finished.
Find out more on the Strata Building Bond & Inspections Scheme page of the Fair Trading website.
Older buildings
If building work was completed more than two years ago, you won’t now qualify for the Strata Building Bond and Inspections Scheme.
However, you may still fall within the statutory warranty periods for buildings in your scheme. This period is up to six years from the completion of building work.
You can lodge a complaint with Fair Trading about defects within your strata complex. How to lodge building defect complaints.
Buildings older than this may have to pay to fix the defect using the capital works fund. If this happens, you should follow the steps for unplanned repairs outlined above.
Can you end a scheme?
The Registrar General can end a strata scheme when all owners want to sell or redevelop it.
If not all owners are sure or some disagree, the strata scheme can follow a set process that can allow a strata scheme to be sold. This can happen if at least 75% of owners in the scheme agree.
Learn more about collective sale and development on the Office of the Registrar General's website.
Vulnerable groups, for example an aged or disability pension, can use Fair Trading’s free advice advocacy service to help with advice on a proposed sale and renewal plan. To find out more contact:
- Strata Collective Sale Advocacy Service (General)
Marrickville Legal Centre
338 Illawarra Road,
Marrickville NSW 2204
Tel: (02) 9559 2899 - Strata Collective Sale Advocacy Service (Older Persons)
Seniors Rights Service Level 4,
418A Elizabeth St,
Surry Hills 2010
Tel: 1800 424 079
If your strata scheme has formed a strata renewal committee, this must be reported
The person in your strata scheme responsible for reporting key information to NSW government each year will need to update their reporting if a strata renewal committee has been formed to collectively sell or redevelop the strata scheme. They will also need to update the reported information for your scheme after the strata renewal committee ceases to operate. Find out more about strata annual reporting.
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