How is a 2 Unit Strata Scheme Managed?

24 July 2020

A lot of the information we share about strata management is focused on medium or large strata schemes, but what about a duplex or 2 unit strata scheme? 

How do you reach a majority vote when there are just two owners involved?  

And how do you navigate important decisions about common property?  

Let’s look at how these matters are handled. 

The main differences in managing a 2 unit strata scheme 

There are a few key differences for a small strata scheme with just two owners, outlined in the Strata Schemes Management Act 2015 and the Strata Schemes Management Regulation 2016

  • Who makes up the strata committee in a 2 unit strata scheme?  
    No nominations are required: both owners in a 2-lot scheme are automatically included in the strata committee. 
  • Meetings and voting in a 2 unit strata scheme 
    In NSW the quorum for a 2-lot scheme is two, which means that both owners or their nominated representative must be present for the meeting to go ahead. It’s fair to say that arranging a meeting with one other owner can be a lot simpler than in a strata scheme with 20 or 50 units! For a by-law or decision to be passed, a unanimous vote from both owners is required.
  • Building insurance options
    There are some circumstances where owners in a 2-lot scheme might have separate buildings with no shared buildings on common property. In these cases, owners might prefer to take out their own independent building insurance rather than collective strata insurance. To do this, they would need to unanimously agree to forego strata building insurance at a strata meeting.
  • Making a decision about the capital works fund 
    If buildings in a 2-lot scheme are physically detached with no shared buildings on the common property, then the owners can elect to not have a capital works fund as long as there is a unanimous decision for this choice. If the scheme does have a capital works fund, then it still needs to have a compulsory 10-year Capital Works Fund Plan as with other scheme sizes.
  • Financial audits
    Larger schemes are required to have financial audits carried out, but 2-lot strata schemes are not required to have audits carried out unless the annual budget exceeds $250,000. Owners can still choose to have their financial statements and accounts audited if they wish to.

What is a large strata scheme, and does it have different rules 

Just as there are specific rules for 2-lot strata schemes, there are also some different provisions for large strata schemes in NSW with 100 lots or more. Professional strata management can be invaluable to manage the complexities of large strata schemes and indeed those of any size, saving you time and headaches when it comes to strata affairs.

amesons Strata Management can help you navigate important legal and financial matters, manage meetings and maintain compliance, as well as other strata services. It’s also very easy to change to new strata management if you’re feeling undervalued by your current strata manager.