Do Strata Laws Apply if We Live in a Duplex? - Jamesons | Strata Managers Sydney
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Do Strata Laws Apply if We Live in a Duplex?

17 January 2018

A duplex or strata scheme with only two lots can be an ideal living situation for many people. This type of set-up often provides an easy lifestyle without the large costs or maintenance that are often associated with a freehold house or property.

 

One common question, though, is how the state strata laws apply to a smaller property as opposed to larger apartments. Do the same laws apply to a strata scheme of just two units? Yes, they largely do. You will still need to keep financial records and meet all safety and administration requirements as per the Strata Schemes Management Act 2015. You will also be required to have an administrative works fund in place. However, there are some exemptions and differences for smaller strata schemes.

 

Capital works fund exemptions

Part 5 of the Act states that strata schemes comprising 2 lots need not establish a capital works fund if:

    (a)  the owners corporation so determines by unanimous resolution, and

    (b)  the buildings comprised in one of those lots are physically detached from the buildings comprised in the other lot, and

    (c)  no building or part of a building in the strata scheme is situated outside those lots.

 

Owners corporation to insure building

Similarly, there is an insurance exemption for 2 lot strata schemes. Part 9 of the Act states that building insurance does not need to be taken out by the scheme if:

    (a)  the owners corporation so determines by unanimous resolution, and

    (b)  the buildings comprised in one of those lots are physically detached from the buildings comprised in the other lot, and

    (c)  no building or part of a building in the strata scheme is situated outside those lots.

 

Strata committees for 2 lot strata schemes

The Act outlines that a 2 lot scheme’s strata committee will consist of:

    (a)  the owner of each lot who is a sole owner or the company nominee of a lot if the sole owner is a corporation,

    (b)  for each lot that is owned by co-owners, the co-owner nominated by the other co-owners or (if the co-owner nominated is a corporation) the company nominee of that co-owner, or if there is no such nomination, the co-owner first named on the strata roll.

 

Another factor is that of management. Managing your own strata can be a simpler process when there are only two or a few lots on the property, and many choose to do this amongst themselves. Others find it invaluable to have a neutral strata manager who can clear up any disagreements and will be across all of the administrative and safety requirements that a strata scheme of any size is required to meet.