Who Pays for a Dilapidation Report in New South Wales?

One of the most common questions property owners ask is: who pays for a dilapidation report? The answer depends on who initiated the need for the report and whether a council condition is involved. This guide covers the financial responsibility in each common scenario in New South Wales.

When the Homeowner Initiates the Report

If you are a property owner who voluntarily decides to commission a dilapidation report — perhaps because you have noticed construction beginning next door and want to protect your interests — you bear the cost. There is no mechanism in NSW to compel a neighbouring property owner or developer to pay for a report you have chosen to commission independently.

However, this cost is typically modest relative to the potential repair costs if damage occurs and you have no baseline evidence. Think of it as insurance: a relatively small upfront investment that protects against a potentially significant loss.

If you later need to pursue a damage claim, the cost of the dilapidation report may be recoverable as part of your claim for damages.

When the Developer Is Required by Council

In the majority of cases where dilapidation reports are required as a condition of development consent, the developer bears the cost. This is because the condition is imposed on the developer’s approval, making it the developer’s responsibility to comply.

The developer engages a qualified professional, arranges access with neighbouring property owners, and pays for the reports. The property owner being surveyed incurs no cost — they simply need to grant reasonable access to their property.

If a developer contacts you requesting access for a dilapidation survey, you should generally cooperate. The report protects your interests as much as the developer’s. If you deny access, you may lose the opportunity to have a professional baseline of your property’s condition at no cost to you.

Government and Infrastructure Projects

Major government infrastructure projects — including Sydney Metro, WestConnex, NorthConnex, and light rail projects — fund their own dilapidation programs. The project authority engages independent assessors to survey all properties within the project’s zone of influence.

Property owners affected by government infrastructure projects do not pay for these reports. The project authority covers all costs as part of the project budget. If you believe your property should have been surveyed but was not included, contact the project authority directly.

Strata and Body Corporate Scenarios

For strata-titled buildings, the situation can be more complex:

• Common property — if the developer’s consent condition requires a dilapidation report of the strata building, the developer pays. The body corporate (owners corporation) should ensure the report covers common property areas, not just the exterior.
• Individual lots — consent conditions may or may not extend to individual apartment interiors. If they do, the developer pays. If they do not, individual lot owners can commission their own reports at their own cost.
• Body corporate initiated — if the owners corporation decides to proactively commission a dilapidation report (without a council condition requiring the developer to do so), the cost is typically borne by the strata fund and shared among all lot owners according to their unit entitlements.

What NSW Law Says

There is no specific NSW legislation that mandates who pays for a dilapidation report in all circumstances. The financial obligation flows from the development consent conditions:

• If a council condition requires the developer to provide dilapidation reports, the developer must comply (and therefore pay) as part of their statutory obligations under the Environmental Planning and Assessment Act 1979.
• If no condition exists, there is no statutory obligation on any party to commission or pay for a report.
• Property owners always have the right to commission their own report at their own expense, regardless of whether a council condition exists.

If you are unsure whether a council condition applies to the construction near your property, you can search the development application on your local council’s DA tracker or contact the council’s planning department. Understanding whether you need a report is the first step.