When Can a Court Order an Easement? NSW Decision Provides Guidance

Securing infrastructure across adjoining land can become a significant issue where a development depends on access that a neighbouring owner is unwilling to provide. A recent NSW Land and Environment Court decision demonstrates that, in limited circumstances, judicial intervention may provide a pathway forward.

St Mary & Angels Pty Ltd v Strata Plan 32407 [2026] NSWLEC 74 concerned land at Chester Hill and a proposed childcare center development requiring stormwater to be directed through adjoining strata property before reaching Council’s drainage network. Despite efforts to reach an agreement with the neighbouring strata owners, the developer was unable to secure the easement by consent. As a result, the developer applied to the Land and Environment Court of NSW for an order creating the easement. 

Duggan J considered the application within the framework of s 40 of the Land and Environment Court Act 1979 (NSW), which enabled the Court to exercise the relevant jurisdiction under s 88K of the Conveyancing Act 1919 (NSW).

A central consideration was whether the drainage arrangement was sufficiently important to justify burdening the neighbouring property. The Court accepted that the proposed easement was necessary to support the proposed childcare use of the property and that the associated drainage arrangements raised no inconsistency with the public interest. The Court also considered the financial impact on the strata owners, approving an $85,000 payment for the easement following an expert valuation that assessed its market value at $58,000. 

Ultimately, this case illustrates that an easement application requires more than demonstrating that an arrangement would be convenient. Applicants must establish the statutory requirements and show that meaningful efforts have been made to resolve the issue commercially.

For developers, this makes early technical investigations, valuation evidence and negotiations particularly important. For neighbouring owners, a proposed easement should be examined in terms of its operational consequences, potential loss and the payment available if the land is burdened.

NSW Building Approvals Set for Reform Under 2026 Bill 

The NSW Government has proposed the Building (Approvals and Practitioners) Bill 2026, recommending significant reforms to the state’s building certification system. If enacted, the Bill would overhaul the current framework of construction and occupation certificates with a new regime based on building and completion approvals, while repealing several existing pieces of legislation, including the Building and Development Certifiers Act 2018, the Design and Building Practitioners Act 2020, and parts of the Environmental Planning and Assessment Act 1979 relating to building certification.

Among the proposed changes is a new process allowing building approvals and completion approvals to be issued in stages. Applicants undertaking staged projects would be required to submit a staging schedule with their initial application, while approval authorities would need to consider how each stage interacts with the broader development. Moreover, the Bill outlines a new mechanism for varying building approvals and introduces a post-commencement authorisation process where work has begun without the necessary approval.

The proposed legislation would also alter the current position by restricting applications for building and completion approvals and completion approvals to parties who have obtained the landowner’s consent. This represents a departure from the existing regime, where a person with the benefit of development consent may generally apply for construction and occupation certificates even if they do not own the land.The expanded consent requirement may create additional hurdles for developers, tenants and others with interests in land who require approval to commence or finalise works, particularly where third-party landowner cooperation is difficult to obtain.

Lastly, Bill introduces a regulatory framework for prefabricated buildings and would bring manufactured homes within the planning approval regime by requiring development consent in circumstances where it is currently unnecessary. It also strengthens enforcement powers by making non-compliance with certain written directions issued by approval authorities a criminal offence and removes the Land and Environment Court’s existing power to substitute its own decision on certain certification disputes. Although the reforms aim to modernise and streamline approvals, many of the changes remain subject to parliamentary approval and have not yet commenced.

NSW Supreme Court Strictly Applies 10-Year Building Defects Long-Stop

In Fortius Broadway No 1 Pty Ltd v Watpac (NSW) Pty Ltd (No 1) [2026] NSWSC 710, the NSW Supreme Court was required to determine whether the statutory 10-year cut-off for building actions also applied to contribution proceedings. The Court confirmed that claims brought under the Law Reform (Miscellaneous Provisions) Act 1946 (NSW) are subject to the limitation imposed by section 6.20 of the Environmental Planning and Assessment Act 1979 (NSW), and that the time limit cannot be revived or extended through the operation of section 74 of the Limitation Act 1969 (NSW). 

This particular dispute concerned alleged building defects at a development in Chippendale, which were under examination after a planter box detached from the building. The retail lot owner commenced proceedings against a number of parties engaged in the project.

Before the 10 year statutory time limit elapsed, the retail lot owner applied to amend its pleadings by alleging further defects and adding a statutory duty of care claim against the certifier under the Design and Building Practitioners Act 2020 (NSW).

The certifier resisted the application, contending that permitting the amendment at such a late stage would materially disadvantage its position. It argued that the long-stop had effectively prevented it from bringing contribution claims against other parties and that section 74 of the Limitation Act 1969 (NSW) could not extend the time limit.

The Court accepted the certifier’s position, finding that contribution claims arise from the same loss or damage associated with defective building work and therefore fall within the scope of section 6.20 of the EPA Act. The Court further determined that section 74 of the Limitation Act 1969 (NSW) could not operate to extend the 10-year long-stop period, as section 6.20 applies despite any other Act or law.

The decision confirms that the 10-year long-stop operates as a strict cut-off for claims connected with defective building work, including contribution claims. It highlights the importance for construction participants and insurers to identify potential claims early and take steps to preserve their rights before the expiry of the statutory period.

Clarifying Director Liability Under the Design and Building Practitioners Act

The scope of directors’ personal liability under the Design and Building Practitioners Act 2020 (NSW) (DBP Act) continues to be refined as courts consider when individuals may be held responsible for defective building work. The recent Supreme Court decision in Strata Plan 92183 v Samdora Pty Ltd [2026] NSWSC 406 provides important guidance on the distinction between directors who actively participate in construction activities and those whose involvement is limited to broader business responsibilities.

The dispute arose from alleged construction defects affecting a residential townhouse project in Mangerton. The owners corporation sought to hold the parties involved in the development accountable, including the builder and developer, and the individuals who directed each entity. A central issue before the Court was whether the directors could be personally liable for failing to discharge the statutory duty of care imposed by section 37 of the DBP Act (NSW). 

In this case, the owners corporation brought proceedings concerning defective works at a townhouse development in Mangerton. The claim was brought against the builder, developer and their respective directors, with allegations that both directors had breached the statutory duty of care imposed under section 37 of the DBP Act. 

The DBP Act adopts a broad approach to identifying who may be responsible for construction work. Section 36 captures not only those carrying out physical building activities, but also individuals who play a significant role in directing or overseeing the works, including through supervision, coordination, project management or control. Accordingly, a director’s exposure will depend on the extent of their actual involvement in the construction process. 

The Court considered the position of each director separately.In assessing the developer’s director, the Court focused on whether his involvement went beyond that of a passive participant. Although he attended certain site inspections and had some involvement with the project, he did not demonstrate meaningful control over, or responsibility for, the construction activities. As a result, the Court was not satisfied that his role was sufficient to bring him within the scope of the statutory duty of care under the DBP Act.

The Court reached a different conclusion in relation to the builder’s director, whose appointed role as supervisor placed him directly within the construction process.The Court accepted that his responsibilities placed him within the scope of the DBP Act and that he thus owed a duty of care to the owners corporation. Notably, each defect was assessed separately, with liability only arising where the evidence showed that the issue could have been identified through appropriate inspections and supervision.

Ultimately, this decision confirms that holding the position of director alone does not automatically create liability under the DBP Act. The critical question is the individual’s practical role in the construction process. Directors with direct statutory responsibilities or active involvement in supervision and control face greater risk, while those performing functions separate from construction activities will require evidence showing a connection to the alleged defects.

NSW Supreme Court Clarifies Requirements for Valid Construction Payment Claims

The NSW Supreme Court’s judgment in Kumar v Frankies Cranes Pty Ltd [2024] NSWSC 1264 illustrates that a successful claim under the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOPA) requires more than an asserted entitlement to payment. Before an adjudicator can determine a claim, the statutory pre conditions imposed by the Act must first be satisfied.

The matter concerned a crane left on Mr Kumar’s property after construction work undertaken by another builder had been completed. Frankies Cranes maintained that, following the completion of those works, Mr Kumar orally agreed to pay an ongoing weekly charge for the crane to remain on the site. Acting on that alleged arrangement, the company lodged a SOPA payment claim and later received an adjudication determination awarding it over $140,000.

Mr Kumar sought to set aside the adjudicator’s decision, claiming that the adjudicator was not empowered to determine the dispute in circumstances where no binding construction agreement had been formed under SOPA. 

The Supreme Court agreed. After considering the evidence, it was not persuaded that the alleged conversation giving rise to the agreement had occurred. The Court found that the claimed agreement did not fit with the commercial context of the parties’ relationship or the events leading up to the dispute.In the absence of a construction contract, the adjudicator had no authority to determine the payment dispute.

The Court also concluded that the payment claim had not been validly delivered. Although it had been emailed to an address appearing on Mr Kumar’s business card, the address had never been identified for the purpose of receiving payment claims, and Mr Kumar’s asserted that he did not receive the email. Because proper service is another essential jurisdictional requirement under SOPA, the adjudication determination could not stand.

The decision demonstrates that compliance with SOPA extends beyond establishing an entitlement to payment. Parties seeking to rely on the Act should ensure contractual arrangements are properly established and that payment claims are delivered in accordance with the statutory requirements, as a failure to satisfy either prerequisite may render an adjudication determination invalid.

When is mould in rental properties the landlord’s responsibility?

A number of recent cases in NCAT have explored the consequences of terminating leases due to mould, highlighting the circumstances in which it is the landlord’s responsibility to deal with mould within a residential rental property. In Andrew Fletcher and Song Fletcher v Luke Bunbury [2015] NSWCATCD 60, the tenants gave a 14 day termination notice after an expert issued a report that the property in question was not fit for habitation. While the landlord had taken steps to install sub-floor vents, and the tenant had kept the property cleaned and the windows open for ventilation, the mould problem was still prevalent. The landlord argued that the tenant had misused the property by failing to ventilate, but the Court ultimately held that it was the landlord’s responsibility to ensure the premises was habitable. As compensation, the tenant was given a refund of excessive rent for the rooms they could not use due to the mould and $15,000 for the cost of professionally decontaminating their affected goods.

What does the banking royal commission mean for consumers?

The government has announced it will support all of the 76 recommendations made in the final report from the Banking Royal Commission, suggesting that there is likely to be significant changes to home loans, mortgage brokers and compliance bodies in the financial sector by the end of the year. In relation to the property industry, Commissioner Hayne heavily criticized the lending practices of banks with home loans, particularly their reliance on the inaccurate household expenditure benchmark (HEM). While various banks have pledged to reduce their use of the HEM, home loan applicants may find their regular discretionary expenses playing a greater role in home loan applications from now on, potentially making it harder to get a loan. Mortgage brokers were also a key focus of the report, with Hayne recommending that the current commission based system be replaced with an upfront fee paid by home loan applicants, as well as an obligation for brokers to act in their clients best interests.

Are online shopping warehouses ‘retailers’ for the purposes of a lease?

A recent decision in the Victorian Civil and Administrative Tribunal (VCAT) has examined whether a premises primarily used for the production, packing and storage of goods sold online fell within the definition of ‘retail premises’. In Bulk Powders Pty Ltd v Seicon Pty Ltd [2018] VCAT 2000, the tenant used the property in question to create and store health supplements that it mostly sold online, however customers also had the option of picking up their products from the premises itself. Notably, only about 5% of sales were conducted in this way. Whether the property was being used for retail purposes was a key issue, as the lease in question specifically stated that the tenant could ‘produce, package and store online health supplements (not retail).’

Ultimately the VCAT held that the premises was not being used for a retail purpose. Weight was given to the fact that generally the premises was not open to the public, and there was no advertising or signage indicating the property was a retailer.

Security of Payment amendments passed by NSW government

The NSW Government has passed the Building and Construction Industry Security of Payment Amendment Bill 2018, that will make many changes to the operation of security of payment (SOP) practices in the construction industry. An important change includes the removal of reference dates, instead allowing a payment claim to be served from the last day of the month in which the construction work was first carried out or an earlier date as specified in the contract. Other changes include the insertion of a variety of new offences and increased penalties for non-compliance, a code of practice, a reduction of the maximum time for payment from 30 to 20 business days, and the creation of an express right to withdraw from an adjudication application.

NSW Government announces crack down on building certifiers

In the wake of the Opal Tower scare in Sydney, the NSW government has announced a new compliance operation that will see 25 to 30 per cent of building certification work audited every year. Any certifiers that are found to have acted negligently, breached the industry’s code of conduct or engaged in corrupt conduct will be banned from working from new strata developments for 12 months as a result of the new scheme.