Did you know that two-lot schemes make up around to 30% of all strata schemes in NSW?
Specific considerations apply for two-lot schemes completing their reporting, like whether they need to report on their capital works fund balance and the insurance replacement value of their strata scheme.
Two-lot schemes may be smaller, but their data is vital in ensuring NSW Government can deliver maximum public benefit from the new annual strata reporting requirements. This is the reason why two-lot schemes need to comply with the new annual reporting requirements which includes all 85,000 schemes across the state.
What is a two-lot strata scheme?
As the name implies, two-lot strata schemes are those limited to only two lots. These include duplexes and houses that are divided into two lots.
Keeping it simple
To make it easier and quicker for two-lot schemes to report, they’ll be able to simply skip fields that may not apply to them. For example, two-lot schemes that have validly chosen not to:
- keep a capital works fund, or
- have combined building insurance.
The $3 per lot fee model equitably allocates the administrative costs to smaller schemes so they are not left out-of-pocket compared to larger schemes.
Just like all other schemes, two-lot schemes are required to keep clear records and hold meetings.
What do two-lot schemes need to consider when reporting?
- Is your scheme exempt? All two lot schemes need to complete their annual strata reporting. To be exempt from having to report on the capital works and combined building insurance information, two lot schemes must meet specific criteria: the buildings in each lot are physically detached, there are no other buildings (or parts of) outside the lots, and the owners pass a unanimous resolution to not have building insurance and/or a capital works fund.
- Are you self-managed? Many two-lot schemes are self-managed which means they don’t have a strata managing agent. Use our handy Streamlining reporting for self-managed schemes checklist blog for an easy-to-follow guide on what information you need to gather and where to find it.
- Who will be the emergency services contact? Two-lot schemes need to nominate at least one emergency services contact. Read our Speedy access to your strata building could save a life blog to find out more about this requirement.
- Have you held an annual general meeting (AGM)? All two-lot schemes are required to hold an AGM each year. The annual strata report needs to be completed within 3 months of the AGM. If your scheme has never held an AGM before, you do not need to provide an AGM date when you complete your first annual strata report. However, you will require an AGM date to submit all subsequent reports.
Find out more about strata reporting and access the hub.
Samira and Dhaval are neighbours in a two-lot scheme duplex in Canterbury. The houses in the duplex are fully detached and there are no other buildings or common property in the scheme.
When they bought into the strata scheme five years ago, they held a meeting where they both agreed to not have a capital works fund or combined building insurance. This was recorded as a unanimous resolution in the meeting minutes.
When Samira completes the reporting on behalf of the scheme, she can tick ‘Scheme is exempt’ for the capital works and building insurance in the ‘Scheme management information’ section of the online reporting.
Join our mailing list
Find out about strata announcements, recently published resources and more. You can also subscribe to other newsletters of interest.