What are the requirements of a two-lot strata scheme?

Today, two-lot strata schemes are a popular choice for property owners, but often there is a complete misunderstanding of the requirements, especially when it comes to claiming insurance or selling a property. We take a closer look at two-lot strata schemes and uncover what is really involved day to day.

What are the requirements of a two lot strata scheme

What is a two-lot strata scheme?

A two-lot strata scheme is responsible for two lots, such as two units, duplexes or houses that are physically detached, and limit having common property.

They’re exempt from some of the rules larger schemes have to adhere to, but they still have their own rules to follow. The lot owners also need to keep clear records and hold meetings.

Under the Strata Schemes Management Act 2015 (SSMA), ‘larger schemes’ refer to strata schemes with 100 or more lots, whilst ‘other schemes’ refer to strata schemes with less than 100 lots and include these two-lot schemes.

Two-lot schemes face their own specific challenges, with a main problem being voting. As there are only ever two votes available on every decision, passing a unanimous resolution can often be difficult. Another challenge two-lot owners have is that they often live in separate detached dwellings and face insurance, maintenance, levies and funds issues. There is also the administration costs and management structure to think about too, which for just two people seems a lot to manage.

However, there are special provisions for two-lot strata schemes compared to larger schemes and these specific rules are as follows:

  1. Accounts and finance statements are not required to be audited.
  2. Owners can obtain their own building insurance for their lot, and be exempt from having a capital works fund if:
    • the building in each lot are physically detached;
    • no building or part of a building is situated outside the lots; and
    • the owners pass a unanimous resolution for the owners corporation not to have building insurance for both buildings and/or not to have a sinking fund.
  3. A quorum in a two-lot scheme with two owners is always two people entitled to vote.
  4. The strata committee is made up of an owner or one co-owner, from each lot.

Administrative Fund

It is also compulsory for all strata schemes including two-lot strata schemes to have an administrative fund. This fund covers the costs of insurances and other recurrent expenses along with the wear and tear and general up-keeping of the property.


Insurance for two-lot strata schemes can be complicated and overwhelming. Purchasing the wrong insurance could mean you are uninsured if you were ever to make a claim on an insurable event. Rather than establishing an owners corporation, which would involve holding meetings and creating a new bank account, many two-lot owners instead split the cost of the insurance equally between them.


Managing your own strata can sometimes be easier to do, especially when there are only two lots on the property to manage. However, engaging the help of an experienced Strata Manager can also keep you up to date with all the administrative and safety requirements involved in a two-lot strata scheme as well as help resolve any disagreements with the property owners.

Interested in Sydney two-lot strata schemes? Find out more about the requirements of a two-lot strata scheme by speaking to one of our talented Strata Managers at The Strata Collective today.

The Strata Collective

Level 9, 387 George St
Sydney, NSW 2000

Ph: 02 9137 2320

Strata Community Australia Member

Winner of the
SCA NSW Strata Community Awards 2020
Medium Category

Congratulations to The Strata Collective and Principal, Rod Smith for winning such a prestigious award.

See the full story and photos here.

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