The Unknown Leak Playbook: Forcing Action When the Strata Scheme Deadlocks

7 August 2026

When an apartment ceiling is dripping, the walls are warping, or mould is spreading, the owner is trapped in an exhausting nightmare unique to modern high-rise living.  To make matters worse, everyone is pointing fingers.  The upstairs neighbour blames the building's facade, while the Owners Corporation (OC) blames the upstairs balcony tiles and all the while nothing gets done to find the actual source of the leak and determine who is actually responsible.

The problem is compounded when the 10 year limitation under Section 134 of the Building Act 1993 has expired, or the builder is no longer around.  The financial and legal burden of an ambiguous leak then shifts entirely onto the people inside the building. 

Textbook legal advice is to engage expert leak detection services and then a building expert for a scope of works, likely to incur costs up to $20,000.  An option to avoid that initial cost may be to shift the onus to both the neighbour and the OC.

In Victoria, the case rests on clear statutory rules that trigger automatic liability for water damage.

 

Target

Legal Leverage

Reality

The Upstairs Neighbour

Section 16 Water Act 1989 (Vic)

Strictly liable if an "unreasonable flow of water" leaves their property boundary (like a private balcony or internal plumbing) and causes damage.

The Owners Corporation

Section 46 Owners Corporations Act 2006 (Vic)

Non-negotiable duty to maintain and repair common property, including the external building envelope, structural slabs, and shared pipes.

 

The Victorian Civil and Administrative Tribunal (VCAT) does not allow an OC or a neighbour to escape liability simply because the structural source of the leak is hard to see.

Get legal advice at the earliest opportunity.

Emanuel Tumino

Partner,

Meerkin & Apel