Strata Made Simple: How a Common Property Memorandum Defines Responsibility

When you own a property in a strata complex, you become part of a shared community, one where responsibility for repairs and maintenance is divided between individual owners and the owners corporation. In practice, that division isn’t always clear. Questions often arise about who should repair a leaking balcony, repaint window frames, or replace a broken bathroom fan. To bring some much-needed clarity, the NSW Government introduced the Common Property Memorandum, a document that sets out exactly who is responsible for maintaining and repairing different parts of a strata building.

A Common Property Memorandum is a tool created under section 107 of the Strata Schemes Management Act 2015 (NSW). It can be formally adopted by the owners corporation through a special resolution and registered with NSW Land Registry Services. Once adopted, it becomes part of the scheme’s by-laws and applies to all owners. In other words, it doesn't come as a standard by-law and needs to be introduced if you want it for your community.

The idea behind the memorandum is simple: ensure fairness and transparency by matching responsibility with benefit. If a particular element of the building such as a private air-conditioning unit or balcony tiles primarily benefits one lot, then the cost of its upkeep should generally rest with that lot owner. Conversely, shared structural elements like the roof, foundations, or external walls remain the responsibility of the owners corporation.

The official memorandum issued by NSW Fair Trading includes a detailed list of building elements and assigns responsibility for each. For example, the owners corporation is typically responsible for structural components, external walls, common plumbing, and wiring. Lot owners are responsible for internal fixtures such as flooring, benchtops, paintwork, and ceiling finishes. The document can be adopted in full or modified by removing sections that don’t apply to a particular scheme, but new versions can’t be created from scratch, only the approved government form can be used.

It’s important to understand that a Common Properpty Memorandum doesn’t override the owners corporation’s legal duties under section 106 of the Act. That section places a clear and ongoing obligation on the owners corporation to maintain and repair common property. Even if a memorandum or exclusive-use by-law exists, those statutory duties remain unless responsibility has been specifically and lawfully transferred under section 107. The memorandum is designed to clarify, not eliminate, the owners corporation’s obligations.

For many strata communities, adopting a Common Properpty Memorandum is a practical step toward reducing disputes and improving efficiency. It provides clear boundaries, allowing repairs to be carried out quickly and fairly without lengthy debates over who should pay. It also helps strata managers and committees budget more accurately and plan future maintenance with confidence. For lot owners, it brings transparency and certainty, particularly for those new to strata living who might not yet understand how shared ownership works.

To adopt a Common Property Memorandum, an owners corporation must first pass a special resolution at a general meeting. Once the decision is made, the document should be registered with NSW Land Registry Services and kept on record for all owners to access. While the process is straightforward, it’s essential that the scheme reviews the details carefully to ensure the memorandum accurately reflects its property’s needs.

In our experience at Compass Strata, a well-implemented Common Property Memorandum can make an enormous difference in how smoothly a building operates. It replaces uncertainty with structure, supports proactive management, and helps avoid the tension that often arises around maintenance responsibilities.

Whether your scheme already has a Common Property Memorandum in place or isn’t sure where things stand, Compass Strata can guide you through the process. We help owners corporations understand their obligations, identify gaps, and put clear frameworks in place so every owner knows exactly where they stand. The clarity this brings can save significant time, cost, and frustration, helping your community run more confidently and harmoniously. Get in touch today.