Duty of Care for Strata Committees: What You’re Legally Responsible For

Serving on a strata committee is an important role. Committee members help make decisions that impact finances, safety, compliance, and the overall wellbeing of residents and owners.

But with this responsibility comes a legal duty of care — a concept that many committee members have heard of, but not everyone fully understands.

In this article, we break down what duty of care means in a strata context, what committee members are legally responsible for, and how you can protect both your building and yourself.

What does “duty of care” mean in strata?

Duty of care refers to the legal obligation to act in the best interests of the owners corporation, and to make decisions that are reasonable, informed, and responsible.

In NSW, strata committee members must comply with obligations under the Strata Schemes

Management Act 2015, which requires committee members to:

• Act honestly and in good faith

• Exercise due care and diligence

• Not make improper use of their position

• Avoid conflicts of interest

Essentially, committee members must act as a reasonable person would in the same position when making decisions on behalf of the building.

Key legal responsibilities of strata committee members

1. Acting in the best interests of the owners corporation

Committee members must prioritise the interests of the scheme as a whole — not personal preferences or individual agendas.

This includes making decisions that support:

• The financial sustainability of the building

• The safety of residents

• Compliance with legal obligations

• Protection of property values

2. Making informed decisions

A key part of duty of care is ensuring decisions are made based on appropriate information and advice.

This may involve:

• Reviewing reports and financials

• Seeking professional advice (engineers, lawyers, insurers)

• Understanding the implications of major works

• Asking questions before voting

Failing to properly inform yourself before making decisions could be considered a breach of duty.

3. Ensuring building safety and compliance

Committees play a critical role in managing risk. This includes ensuring the scheme complies with regulatory obligations such as:

• Fire safety requirements

• Essential services maintenance

• Work health and safety considerations

• Building defect management

• Insurance obligations

Ignoring safety issues or delaying necessary repairs can expose the owners corporation to significant legal and financial risk.

4. Managing finances responsibly

Committee members must oversee the financial health of the scheme by:

• Approving realistic budgets

• Monitoring expenditure

• Ensuring levies are sufficient

• Planning for future capital works

Poor financial governance can lead to special levies, disputes, and declining asset value — which is why financial oversight is a core component of duty of care.

5. Avoiding conflicts of interest

Committee members must disclose any personal or financial interests that could influence their decision-making.

For example:

• Owning a business quoting on building works

• Personal relationships with contractors

• Financial benefit from a decision

Transparency is essential to maintain trust and ensure decisions remain fair and defensible.

Can committee members be personally liable?

In most cases, strata committee members acting in good faith are protected from personal liability.

However, liability risks may arise if a member:

• Acts dishonestly or negligently

• Ignores known risks or safety issues

• Misuses funds

• Fails to disclose conflicts of interest

This is why good governance practices and professional guidance are so important.

How strata committees can meet their duty of care

Practical steps include:

✔ Keeping accurate records and minutes

✔ Seeking expert advice when needed

✔ Following proper decision-making processes

✔ Maintaining open and transparent communication

✔ Working closely with an experienced strata manager

A proactive and structured approach significantly reduces risk and helps committees make confident decisions.

Why professional guidance matters

Many committee members are volunteers with busy professional and personal lives. Navigating legislation, compliance, and financial oversight can be complex — and that’s where a strong strata management partner becomes invaluable.

At Centric Strata, we work closely with committees to ensure they understand their obligations, manage risk effectively, and make decisions that support the long-term success of their building.

Final thoughts

Being on a strata committee is both a privilege and a responsibility. Understanding your duty of care isn’t about creating fear — it’s about empowering committee members to make informed, confident decisions that benefit the entire community.

With the right support, governance, and processes in place, committees can fulfil their responsibilities effectively while helping their schemes thrive.

Need guidance as a strata committee member?

Centric Strata partners with committees across NSW to provide expert advice, governance support, and proactive management.

Contact our team to learn more.