Did you know that in NSW a 2 lot subdivision is required to keep clear records, hold an AGM each year and report within 3 months of the AGM to Fair Trading and if you don’t you will get a please explain letter. In Victoria a 2 lot does not need to do anything BUT I alert you to the fact that if the buildings are joined at the hip then you will need a special type of building insurance cover.
In NSW unlike most schemes, there are a number of rules that don’t apply to two-lot schemes. These are: Selecting a strata committee. Two-lot schemes have an automatic committee made up of one owner from each lot. If more than one person owns a lot, only one of them can be on the committee. Accounts and financial statements don’t need to be audited. Owners can separately insure their own lots and be exempt from having a capital works fund if:
- the buildings in each lot are physically detached;
- no building or part of a building is situated outside the lots; and
- the owners pass a unanimous resolution to not have building insurance for both buildings and/or not have a capital works fund.
Most residential two-lot schemes will not require an annual fire safety statement. Other fire safety measures may apply – check with your local council.
Next month I will lead into Victoria’s OC rules. Feel free to email me a subject for discussion.