Strata schemes with two lots are subject to their own set of rules under the Strata Schemes Management Act (‘SSMA’).

Here’s what you need to know!

What are the rules for two lot schemes under the SSMA?

• Strata Committees consist of one owner from each lot; either the sole owner or a nominated co-owner (SSMA s30(4)). Both members are required for a quorum to be formed (SSMA Sch 1, Cl 17(2)(c))
• Audit Requirements: where the scheme’s annual budget does not exceed $250,000.00, an audit of the scheme’s accounts and financial statements is not required (SSMA s95).
• Capital Works Fund & Building Insurance: where the buildings comprising each lot are physically separate and there are no additional buildings on the common property, the Owners Corporation may unanimously resolve to not have a Capital Works Fund (SSMA s74(5)) and not to obtain building insurance (SSMA s160(4)). Relatedly, a 10-year capital works fund is also not required (SSMA s80).
• An Administrative Fund is still required. The scheme must comply with the SSMA’s record keeping and administrative requirements (SSMA s73).
• By Law Enforcement: a notice to comply can be given to an owner or occupier who has contravened a by-law. This notice can be given without a resolution being passed at a general meeting (SSMA s146(4)).

Navigating the legal requirements of smaller strata schemes may still be complex.

Vinc Legal can help you understand your obligations & help you stay compliant with NSW strata law.