Two-lot strata schemes face their own unique challenges in contrast to larger strata schemes. This is because two-lot strata schemes only involve two owners whereas larger strata schemes could involve 10, 20, 50 or over 100 lot owners in a particular strata scheme. For this reason, special provisions apply to living in a two-lot strata scheme that effect the insurance, sinking fund, voting and strata committee of the strata scheme.
Specifically, s 160(4) Strata Schemes Management Act 2015 (the Act) provides that owners in a two-lot strata scheme may obtain their own building insurance for their own lot in the following circumstances:
- The owners in each lot determine by unanimous decision to use their own building insurance;
- The buildings in each lot are physically detached from each other; and
- No building or part of a building in the strata scheme is situated outside the lots.
Similarly, s 74(5) of the Act provides that in the above circumstances, there is no need to establish a Capital works fund.
In regards to the strata committee, the Act prescribes that the Strata committee is made up of:
- The owner of each lot that has only one owner; and
- The company nominee of each lot that is owned by a corporation; and
- One co-owner of each lot if co-owned by co-owners (s 30).
Essentially this specifies that the two owners of each lot form the executive committee meaning that there is no need for an election in two-lot strata schemes.