Strata4 min read

By-laws, levies and common property

By Un-Ai Jo, Principal Solicitor · Admitted in NSW, 2015 · Reviewed September 2026

What this is

General information about the law in New South Wales. It is not legal advice, it does not take account of your circumstances, and no solicitor–client relationship arises from reading it.

The boundary

Most strata disputes turn on the boundary between the lot and common property. Under the Strata Schemes Development Act 2015 (NSW), for a standard residential scheme the lot boundary is generally the inner surface of the walls, the upper surface of the floor and the under surface of the ceiling. Everything structural outside that line is common property, and the owners corporation must maintain and repair it under s 106 of the Strata Schemes Management Act 2015 (NSW).

Waterproofing membrane in a bathroom: common property
Tiles laid over it: usually lot property
Window frames and sashes: common property
Internal paint: lot property

The s 106 duty is strict

The owners corporation's duty to maintain common property is not qualified by reasonableness, and an owner who suffers loss because it was breached may recover damages under s 106(5).

The period changed on 1 July 2025Section 106(6) now reads: "An owner may not bring an action under this section for breach of a statutory duty more than 6 years after the owner first becomes aware of the loss." It was two years until the Strata Schemes Legislation Amendment Act 2025 (NSW) extended it. The extension has been held not to operate retrospectively, so a claim already time-barred under the former two-year period is not revived — which makes the date the owner first became aware the critical fact in any claim straddling 1 July 2025.

By-laws

By-laws are passed by special resolution and must be registered to bind. A by-law cannot be harsh, unconscionable or oppressive: s 139. Blanket pet prohibitions are invalid following Cooper v The Owners – Strata Plan No 58068 [2020] NSWCA 250, and a scheme may only refuse a pet where keeping it would unreasonably interfere with another occupant's use.

Renovations

Cosmetic work needs no approval. Minor renovations need an ordinary resolution of the general meeting. Structural work, and anything affecting waterproofing or external appearance, needs a by-law passed by special resolution.

Current as at September 2026. Check anything here against your own documents and dates before you act on it.

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