People living in duplexes or semi-detached townhouses might think they don’t need to worry about strata, but when it comes time to sell or claim insurance they often find that records and plans need to be in place.
Two lot properties have an unusual place in the world of strata, they’re exempt from some of the rules that larger schemes have to follow but still need to hold meetings, records and some insurances. Read on for the key differences you need to know to get by in the smallest of strata:
- The two owners are automatically the members of the executive committee.
- Both owners need to be present at a meeting for it to have a quorum.
- They only require an administrative fund.
- Section 87 of the current Strata Schemes Management act requires that they have the following insurances:
- Worker’s Compensation Insurance
- Voluntary Worker’s Insurance
- Public Liability Insurance
Owners can also be exempt from:
- Requiring a sinking fund
- Requiring building insurance
But only if:
- The buildings in each lot are physically detached
- No building, or part of them, is situated on common property (i.e. no shared spaces like driveways or mailboxes)
- The owners pass a unanimous resolution for the Owners Corporation not to have a sinking fund and/or building insurance for both buildings.
If they do so, each owner may then insure the structure(s) on their own lot.
Finally, two-lot schemes are not required to arrange audits for their accounts and financial statements.