Flat Chat Forum Two-unit strata Current Page

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  • #10965

    The gyprock ceiling in the garage of a lot in a two lot strata plan has collapsed. Is the strata plan up for the cost to repair or the lot? Please advise

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  • #26563
    Lady Penelope

    Thanks for providing more details. Who manages the money in the “rainy day” fund?

    It would appear that, based on the configuration of the Lots, your “rainy day” fund  would pay for the repairs to Lot 2.This “fund” should also cover repairs to your Lot 1 – as you are both in the same situation with a collapsed ceiling. Make sure that your ceiling is repaired properly at the same time rather than merely “propping it up”, which is not really a satisfactory repair.

    Send all the details to the other owner to keep them informed, keep the records, and at your next informal meeting you can both put a bit more money aside to top up the “fund”.


    Hello Lady Penelope,

    Thank you for your reply.
    We are a self managed 2 lot Strata Plan duplex (we are attached and identical only opposite?)
    Lot 1, being me, who resides here. And lot 2, who lets his lot. We meet annually and put money aside  to pay for building insurance and for that “rainy day”.
    There are no by-laws regarding garages.
    I agree, ceilings don’t just collapse (unless initially badly set).
    The tenants (lot 2) have claimed their garage ceiling collapsed during recent heavy rain, suggesting water has penetrated the roof. If this was the case I would be putting in an insurance claim.
    I have since checked out the damage, there is no sign of water penetration. The timing I believe is just coincidence.
    Coincidently, where it has collapsed is exactly where my ceiling began to drop a few years ago, before I propped it up.
    Thank you for reading my story. Are you able to advise me, who pays for the repairs, the Strata Plan or Lot 2?


    Lady Penelope

    the body – 2 Lot strata schemes are treated differently under the SSMA 2015 in some regards – they have a few special provisions.

    From the Strataman site:

    2-lot Strata Schemes

    The special provisions for 2-lot schemes are:

    • the 2 owners automatically form the Strata Committee removing the requirement for an election.
      (See SSMA 2015 – Section 30) – especially Part 3
    • If the buildings in the scheme are physically detached from each other, the owners can decide NOT to have a Capital Works Fund provided there are no additional buildings or common property in the scheme.  Both owners must decide this by unanimous resolution at a meeting.
      (See SSMA 2015 – Section 74) – specifically Part 5
    • Building insurance is NOT compulsory where the two buildings in the scheme are physically detached and there are no additional buildings on common property in the scheme.  However, both owners must decide to forgo insurance cover by unanimous resolution at a meeting.  Each owner may then independently insure their own lot.
      (See SSMA 2015 – Section 160) – specifically Part 4
    • Transferring money from the admin fund to the capital works fund and vice-versa does NOT seem to apply to 2-lot schemes according to the legislation.  I can understand this if there is NO Capital Works Fund to start with but what if there is one?  Then again, it doesn’t say you CAN’T do the transfer…hhhmmm
      (See SSMA 2015 – Section 76).

    Can you provide more information please? Can you describe the design of your 2 Lot scheme i.e. are the two buildings detached from each other? Check your Lot boundary and your building and survey plan – is the garage totally within your Lot boundary? If not, then what do the by-laws say about garages? 

    Ceilings don’t generally collapse for no reason. Do you have any ideas what caused the collapse – was there a water leak etc? Would any of the occupants of the two Lots have contributed to the ceiling collapse e.g. was material stored in the space above the ceiling, if there is such a space?

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Flat Chat Forum Two-unit strata Current Page