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ARTICLE · 16 JULY 2025

Strata reform 2025: Extended liability and contract protections explained

Gilchrist Connell
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Discusses two key changes (from the reforms) which are particularly relevant to owners corporations & their insurers.

AustraliaReal Estate and Construction
Candice Ingleton
Candice Ingleton
Melissa Fenton
Melissa Fenton
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On 1 July 2025, the NSW Government implemented a further stage of significant reforms to legislation for all NSW strata schemes and community land schemes. These changes aim to modernise governance, enhance transparency, and improve protections for owners and residents in strata schemes. While the reforms are broad, we touch on two key changes which are particularly relevant to owners corporations and their insurers.

Extended limitation period for damages claims

Section 106(5) of the Strata Schemes Management Act 2015 (Act) provides that a lot owner may recover from an owners corporation damages for any reasonably foreseeable loss suffered by the owner because of an owners corporation's breach of its statutory duty, under section 106(1) of the Act, to maintain and repair common property.

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