NSW strata reforms: what changed on 1 July 2025

If your owners corporation has been sitting on a leaking roof, a defective façade or a drainage problem for years — on the assumption that the two-year window to do anything about it closed long ago — that assumption stopped holding on 1 July 2025. A staged set of NSW strata reforms has rewritten how long lot owners have to act, and what an owners corporation must do while a dispute is still running.

Legally reviewed by Matthew Armota, Principal, Archer Lawyers.

Why the old rule didn't work

The old two-year rule sat awkwardly with how defects actually surface. Waterproofing failures, cracking and drainage problems rarely announce themselves at handover — they tend to show up years into a scheme's life, often after the original two-year clock had already run out on anyone. Lot owners who discovered a real problem outside that window had, in practice, no claim against the owners corporation for its failure to repair, no matter how serious the defect or how clearly it had been neglected. The reforms below are a direct response to that gap.

The repair duty hasn't changed — but the safety override has

Owners corporations have always owed a statutory duty to properly maintain and repair common property, under section 106 of the Strata Schemes Management Act 2015 (NSW) — see our strata and community title practice for how we advise on these disputes. What changed on 1 July 2025 is what happens while a dispute about that duty is still being argued over. Where a defect poses a risk to safety or access — an unstable façade panel, a roof actively letting water in — the owners corporation must now act immediately, regardless of any ongoing legal proceedings about who is ultimately liable or who pays. “We'll fix it once the dispute is resolved” is no longer an available position where safety is at stake.

That doesn't resolve who ultimately foots the bill — a dispute over liability (a builder, a developer, an insurer) can still run its course afterwards, and the owners corporation isn't left simply absorbing the cost by acting quickly. What it removes is the option to let a safety issue sit unrepaired while that argument plays out, which is precisely the scenario that has previously left tenants, visitors and lot owners exposed for months or years at a time.

Sitting on a defect your owners corporation hasn't addressed? If it's a safety or access issue, it may need to be actioned now, regardless of any dispute over who pays. Speak with our team — free consultation.

Lot owners now have six years to act, not two

The change most likely to affect a live decision: the limitation period for a lot owner to bring a claim against an owners corporation for breaching its repair duty has been extended from two years to six years, running from when the owner first became aware of the loss — not from the date of the original breach. For an owner who was told, or assumed, that their window had closed, that is no longer necessarily true. It is also a materially longer exposure window for owners corporations, which raises the practical value of dealing with known defects proactively — getting them assessed, budgeted for and scheduled — rather than waiting them out and hoping a claim never eventuates.

What this means for your scheme

• Lot owner with a known, unaddressed defect: don't assume your time has run out — the six-year window may still be open, particularly if you only recently became aware of the full extent of the loss.
• Strata committee facing a safety-risk defect: budget and act now. Deferring repairs until a payment or liability dispute resolves is no longer a defensible position where safety or access is affected, and it now sits inside a much longer exposure window if you get it wrong.

FAQs

What is the new time limit for lot owners to sue an owners corporation for failing to repair common property?

Six years from when the owner first became aware of the loss, up from two years, following amendments that took effect 1 July 2025 under the Strata Schemes Legislation Amendment Act 2025 (NSW).

Does an owners corporation have to fix a defect while a dispute about who pays is still ongoing?

Yes, if the defect is a safety or access risk. Since 1 July 2025, section 106 of the Strata Schemes Management Act 2015 (NSW) requires urgent repairs to proceed regardless of unresolved legal proceedings.

If the owners corporation pays for an urgent repair, does that mean it can't recover the cost later?

No. Acting quickly on a safety-risk defect and resolving who is ultimately liable for the cost are separate questions. The owners corporation can still pursue a builder, developer or insurer for the cost afterwards — the reform simply stops that dispute from delaying a repair that shouldn't wait.

What should a strata committee do right now?

Get independent advice on any known but unresolved common property defects, particularly anything safety-related, given both the immediate-repair obligation and the longer exposure window for the scheme.

If your owners corporation is sitting on an unresolved common property defect — or you're not sure whether your window to act has actually closed — contact our team to find out where you stand.

This publication is intended as general information only and does not constitute legal advice. Please seek independent legal advice before acting on anything contained in it.

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