Strata living in New South Wales continues to test the balance between shared responsibility and individual loss—particularly in water ingress cases. The District Court decision in John Goubran & Associates Pty Ltd v The Owners – Strata Plan 57150 has clarified a critical issue for lot owners and strata committees: what happens when repairs are delayed, and what happens when limitation periods expire?
Julian and Renee at Flash Conveyancing are seeing a rise in what can be described as “delay claims”, where owners suffer ongoing financial loss due to a failure to carry out timely repairs to common property.
The case arose in Sydney, where water entered a unit in Burwood due to a defective balcony membrane above. The Owners Corporation was notified in late 2021, and by April 2022 the cause had been confirmed by an expert report. Despite this, repairs were not completed until December 2024. The unit remained unusable and untenantable for almost three years, leading to a claim for loss of rent.
The owner relied on section 106 of the Strata Schemes Management Act 2015 (NSW), which imposes a strict duty on Owners Corporations to repair and maintain common property. However, a legal complication arose. In July 2025, the limitation period for such claims was extended from two years to six years. The plaintiff argued that this change should apply retrospectively and revive their claim. The Court rejected this argument.
Relying on Rodway v R and Maxwell v Murphy, Judge Cole confirmed that legislation does not operate retrospectively unless expressly stated. As the owner became aware of the loss in December 2021, the original two-year limitation period expired in December 2023. By the time the law changed, the statutory claim had already lapsed.
Importantly, the matter did not end there. The Court accepted an alternative claim based on common law negligence. Unlike statutory claims, negligence claims are subject to longer limitation periods. The Court found that once the expert report was received in April 2022, the Owners Corporation was required to act reasonably and promptly. Delaying repairs for over two years was not merely inefficient—it was negligent.
As a result, damages for loss of rent were awarded from the point at which repairs should reasonably have been completed.
This decision is significant for strata disputes in NSW. It confirms that while statutory rights are strictly bound by limitation periods, common law duties can provide a powerful fallback. It also shows that courts are applying a stricter standard of “reasonableness”. Committees can no longer rely on slow capital works programs or budget constraints to justify delays where owners are suffering measurable loss.
In practical terms, the case provides clear guidance for lot owners:
- Record the exact date you first become aware of damage or loss—this starts the limitation period.
- Request clear timelines and scopes of work from the Owners Corporation to establish accountability.
- Obtain independent rental appraisals to quantify financial loss.
- Consider both statutory and negligence claims when seeking a remedy.
Strata disputes are no longer confined to NCAT or narrow statutory pathways. More matters—particularly those involving significant loss—are moving into the courts. This decision is likely to increase negligence claims across NSW, especially in older buildings where maintenance delays are common.
Flash Conveyancing Advice:
Do not rely solely on statutory rights if your strata scheme is delaying repairs. Act early, document everything, and consider both statutory and negligence pathways as part of your legal strategy.
Flash Conveyancing, led by Julian & Renee, are specialists in property transactions across New South Wales. With extensive experience across councils including Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby and Parramatta, they deliver a personalised, practical approach to every settlement. Clients across Acacia Gardens, Blacktown, Kellyville Ridge, Schofields, The Ponds, Castle Hill, Rouse Hill, Norwest, Baulkham Hills, Windsor and Winston Hills rely on their clear and dependable guidance.