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In the realm of strata schemes, the Strata Schemes Management Act 2015 (the Act) grants lot owners specific rights and obligations, including the entitlement to pursue damages for loss of rent due to the owners corporation’s failure to uphold its responsibility for maintaining and repairing common property.

Section 106 of the Act establishes a procedure for lot owners to seek compensation for damages caused by the owners corporation’s breach in fulfilling its duties pertaining to the upkeep and repair of common property. This includes circumstances where such breach leads to loss of rent. To succeed in their claim, owners must demonstrate that the owners corporation was in breach of its duty and that this breach directly led to the loss or damages incurred.

It is crucial for owners to be aware of the two-year deadline for filing claims under section 106 of the Act. This time frame commences on the date when the owner first became aware of the loss or damage, or when it should have reasonably become apparent. To avoid missing out on potential compensation, owners must act promptly in filing their claim.

To substantiate a claim under section 106, owners may be required to gather expert evidence. This could involve acquiring reports from structural engineers, real estate agents or other professionals. This evidence is vital in illustrating the extent of the loss or damage and is essential for a successful claim.

In addition, owners are obligated to minimise their losses when pursuing damages under section 106. This entails taking reasonable measures to reduce losses, such as ensuring the lot is available for rent again as quickly as possible. Failing to undertake reasonable steps to mitigate losses could result in a decreased compensation amount awarded under section 106.

In summary, owners of lots in strata schemes have the right to claim damages for loss of rent resulting from the owners corporation’s breach of its duty to maintain and repair common property. However, owners must be aware of the limitations and requirements under section 106 of the Act, including the two-year limitation period, the need for expert evidence, and the obligation to mitigate losses.

Strata Schemes Management Act 2015

Seeking legal advice as soon as possible after becoming aware of a breach of the owners corporation’s duty can help owners to make a successful claim and obtain the compensation that they are entitled to.

Our team is available to provide you with advice and representation in relation to loss of rent claims.  

Disclaimer: This is commentary published by Pobi Lawyers for general information purposes only it should not be relied upon as specific legal advice. You should obtain your own legal advice specific to your circumstances before you take any action or otherwise rely on the contents of this article. The content of this article is subject to change. The law is also subject to change.