NSW: Q&A Who pays when the owners corporation fixes a lot owner’s property by mistake?

This article discusses who is responsible for costs when an owners corporation fixes lot property by mistake and later seeks reimbursement from the lot owner.

Question: Can the strata manager make me reimburse the owners corporation for repairs if they’ve now discovered that the work was my responsibility?

In July 2024, my strata manager approved a work order to replace the exhaust fans in my unit, advising that the fans were common property. A new strata manager has now contacted me to say this was an error and that, as the lot owner, the fans are my responsibility. They’re asking me to reimburse the cost of the work.

I didn’t see the quote or the cost, nor did I authorise the work. If I knew I was responsible, I would have used my own contractor. Do they have any grounds to recover the cost from me now?

Answer: If Party A gets the benefit of goods and services by Party B, then Party A should reimburse Party B the fair value of those goods and services.

This is a very specific scenario, and I commend the inquirer to seek legal advice.

In general, an exhaust fan that services one lot, or is within one lot, would be lot property and not common property, though there could be specific arrangements altering that general rule.

From the information provided, it is unknown why the strata manager or owners corporation agreed in error to be responsible for works to this exhaust fan. It is also unclear what knowledge the lot owner had of this mistake by the owners corporation.

The common law contains default positions, but exceptions can apply. Based on the information given in this scenario, the default position is:

1. the fan is lot property;
2. it was repaired by the owners corporation due to a mistake;
3. the lot owner received the benefit of the fan; and
4. thus, the lot owner has to pay for the works to the fan or reimburse the owners corporation for performing the works.

This principle is often called quantum meruit, where even when there’s no agreement, if Party A gets the benefit of goods and services by Party B, then Party A should reimburse Party B the fair value of those goods and services.

This general principle can be deviated from depending on circumstances, for example, if the amount paid for is excessive or there is some bad faith on the part of Party B. There is no indication of that in the facts provided.

The inquirer states that had they known they would be responsible for the expense of the exhaust fan works, they would have engaged their own contractor:

1. first, the lot owner does have an obligation to know what is their lot property. This is implied in the Strata Scheme Management Act 2015, for example, by section 153.
2. second, it is unclear how the lot owner is adversely affected by not using their own contractor. Even if there were a remedy available, it would likely be de minimis. This is a legal principle that the law should not intervene where the decision would have minimal implications.

The above is based only on the facts provided, and new facts may provide exceptions to the general and default position given above.

Matthew Lo
Kerin Benson Lawyers
E: enquiries@kerinbensonlawyers.com.au
P: 02 8706 7060

This post appears in the December 2025 edition of The NSW Strata Magazine.

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Read next:

• NSW: Fair Trading’s Common Property Repairs and Maintenance Compliance and Enforcement Policy
• NSW: Q&A What are the owners corporation’s obligations when owners can’t agree on repairs?
• NSW: Q&A What are my options if the owners corporation won’t repair common property?

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