Two-lot strata subdivisions (such as duplexes and dual occupancies) represent a large majority of strata schemes across New South Wales. While recent legislative reforms introduce procedural simplifications for micro-schemes, they remain strictly bound by the core compliance obligations of the Strata Schemes Management Act 2015.
In a two-lot scheme, shared expenses are only split two ways, typically on a strict 50/50 basis. This means major structural maintenance items (such as replacing a roof, external rendering, boundary fences, or shared driveway damage) impose a much higher individual financial burden than they would in a large multi-storey complex.
Prospective buyers shoul review the strata body corporate records prior to entering into a contract to establish whether expensive capital works are pending, and verify if a sufficient Capital Works Fund exists to absorb those costs. If records are non-existent, a pre-purchase building inspection should be obtained to identify any structural common property issues.
Under Section 160(4), individual lot owners can only obtain independent building insurance policies and opt out of a joint owners corporation building policy if the two lots are entirely physically detached, no part of the structures sits on common property, and a unanimous written resolution is executed on title.
NOTE: Operating a self-managed two-lot strata scheme with zero formal records, missing meeting minutes, or un-documented insurance decisions can potentially invalidate your building insurance premiums if an insurable disaster or public liability claim occurs.
To make legally binding decisions under Section 7A without holding meetings, a strict written consensus framework applies. All new strata records generated after 11 June 2024 must be stored digitally and retained for a minimum of 7 years.
To understand how important changes to strata in 2026 affect owners and strata committees, access the official NSW Fair Trading website for information relating to strata law changes for strata committees and owners.
Considering purchasing into a two-lot strata scheme?
Every two-lot strata scheme is different. Buying into a scheme with missing, dysfunctional, or non-existent strata records can create future vulnerabilities.
Contact us to discuss the unique circumstances, legal and practical considerations, compliance obligations, and regulatory requirements that may apply, and obtain our recommended record-keeping pack.