Working Together to Address Building Defects: A Guide for Owners Corporations in Victoria

When it comes to managing a strata property, few issues are as urgent—or as potentially costly—as building defects or major structural concerns. In Victoria, Owners Corporations (OCs), committees, and lot owners all have a shared responsibility to act early and transparently. The key? Collaboration with your Owners Corporation Manager (OCM) and clear communication with all stakeholders.

Why Early Action Matters

Defects—whether they’re water ingress, structural cracks, or fire safety non-compliance—can worsen over time. Delaying action not only increases repair costs but can also expose the OC to legal liability. Under the Owners Corporations Act 2006 (Vic), committees have a duty to act in the best interests of the OC, which includes maintaining common property and ensuring safety.

The Role of the Committee and Owners

Committees are elected to represent the interests of all lot owners. When a defect is identified, the committee should:

• Engage the OCM to coordinate expert inspections and reports.

• Hold meetings to discuss findings and agree on next steps.

• Communicate openly with all owners about the issue, proposed solutions, and potential costs.

Lot owners also play a vital role. They should:

• Report issues early to the committee or OCM.

• Attend meetings and participate in decision-making.

• Support resolutions that enable timely repairs or legal action if needed.

How Your OC Manager Can Help

A professional OCM brings expertise in:

• Coordinating defect reports from engineers or building consultants.

• Obtaining quotes and managing repair works.

• Navigating legal pathways, including dispute resolution or initiating proceedings if necessary.

Recent updates to the OC Act allow committees to authorise legal proceedings for claims up to $100,000 by ordinary resolution. This empowers committees to act swiftly without needing a full vote of all owners.

Disclosure Is Not Optional

Transparency is critical. Any known defects or major building issues must be:

• Disclosed to all owners, especially if they impact safety, insurance renewals, claims excess and or future levies.

• Included in the Owners Corporation Certificate (Section 151) when a lot is being sold, ensuring prospective buyers are fully informed. Don't be afraid to ask the question regarding any major building-related matter or defects, as these must be disclosed if there are any at the time of generating the certificate.

• Failure to disclose such matters can lead to legal consequences and erode trust within the community.

Best Practices for Proactive Management

• Schedule regular building inspections to catch issues early.

• Maintain clear records of all reports, quotes, and decisions.

• Communicate consistently with owners via newsletters or meeting minutes.

• Work collaboratively—committees, owners, and OCMs should be aligned on priorities and actions.

By working together, Owners Corporations can protect their property, reduce legal risk, and foster a stronger, more informed community.