The Concept Of ‘Interior Face’: Where Does The Boundary Lie?

This piece was co-authored by Tanya Pestamalgian, Law Graduate.

Do the floor and walls of an apartment balcony belong to the owner of the lot, or are they common property? Where does liability lie when repairs are needed? With the ever-increasing development of high-density urban dwellings, the recent decision in Damjanovski v Owners Corporation 1 Plan No. PS503570D [2026] VSC 656 (Damjanovski) highlights how uncertainty about lot boundaries can complicate responsibility for building defects and repairs, and emphasises the importance of clear Plans of Subdivision.

Facts

A long-running dispute over a deteriorated apartment balcony causing water ingress and neighbouring property damage recently reached the Supreme Court of Victoria following a decision of VCAT in favour of the Owners Corporation (OC). The OC had successfully argued before VCAT that the deteriorated tiles, waterproofing membrane and screed (balcony components) formed part of the privately owned lot and were therefore