Victoria 2 Lot Subdivisions

Last month I gave a snapshot into NSW 2 lot subdivisions. This month we do Victoria. Two lot
subdivisions are exempt from many of the legal requirements placed on larger owners’ corporations
“OC’s”. For example:

If your OC has two lots, you do not have to:
 Take out insurance in the name of the OC for public liability and property insurance.
 get a special resolution to bring legal proceedings
 use approved forms as notices to collect fees
 restrict votes of lot owners if fees are unpaid.
Your OC is also exempt from legal requirements for:
 unanimous resolutions, special resolution and interim special resolutions
 financial reporting and financial statements
 maintenance plans and funds
 annual meeting, general meeting and ballot procedures and
 keeping records for and establishing an owner’s corporation register.
What an OC with two lots must do:
 Prepare owners corporation certificates.
 Repair and maintain any service relating to a lot that benefits more than one lot and
common property.
 Comply with the Law
Individual lot owners in a two-lot subdivision:
 are responsible for any common property and risk significant legal and financial liabilities if
someone is injured or the building is damaged.
 should seek advice from their insurer on strata insurance products to cover those risks.
 Issue Owners corporation certificates for two-lot subdivisions
If you intend to sell your property, you must include an owner’s corporation certificate and
accompanying documents in the Section 32 statement (vendor's statement).

Get legal advice and play safe.