🏡 So You Bought a Duplex… 🏡

MELISSA FRANZEN • February 26, 2026

(With a Shared Wall Dividing Both Lots)

Welcome to strata living — even if it’s “just two of you.”

If your property is part of a 2-lot strata scheme (duplex), you are automatically part of an Owners Corporation (OC) under NSW strata law.

Even if you and your neighbour get along perfectly. 
Even if you’ve “always just split things 50/50.”
Even if you don’t have meetings.

The legislation still applies.


✅ OWNERS CORPORATION COMPLIANCE CHECKLIST

(NSW – Strata Schemes Management Act 2015)

📋 1. Records & Sale Compliance

Your Owners Corporation must have:

·               A properly maintained strata roll

·               Accurate levy records

·               AGM minutes (kept for 7 years minimum)

·               Up-to-date financial statements

·               A current 10-year Capital Works Plan

·               Insurance records available

·               Section 184 Certificate issued correctly on sale

If you’re selling, levies and any special levies must be correctly disclosed.

 

🏢 2. Capital Works Fund

Even in a 2-lot scheme, you must:

·               Maintain a Capital Works Fund (unless formally exempt)

·               Have a 10-year plan (reviewed every 5 years)

·               Strike levies properly at an AGM

Informal arrangements are not compliant.

 

💰 3. Insurance (Critical in Duplexes)

The OC must:

·          Insure the building for full replacement value

·          Hold $20 million public liability insurance

·          Obtain a building valuation at least every 5 years

·          Ensure the policy is current at settlement

Important for duplexes:

·          The dividing wall is usually common property

·          The full building envelope must be insured

·          “We each insure our half” is often unlawful

 

🔥 4. Fire & Safety

The OC must ensure:

·          Fire separation between lots is intact

·          No unauthorised penetrations in the dividing wall

·          Smoke alarms are compliant

·          Any essential fire measures maintained

The dividing wall fire rating is critical.

 

🛠 5. Maintenance Obligations (Section 106)

The Owners Corporation must maintain:

·          The dividing wall (if common property)

·          Roof structure

·          External walls

·          Structural elements

·          Common plumbing and drainage

·          Shared services

Failure to maintain exposes the OC to damages claims.

 

 

📜 6. By-Laws & Alterations

Check for:

·           Registered by-laws

·           No informal side agreements

·           No unauthorised structural changes

·           Air-conditioning penetrations

·           Roof penetrations

·           Decks or pergolas

·           Fence responsibility clarity

 

 

🧾 7. Levies

Levies must:

·           Be struck at a general meeting

·           Follow unit entitlements

·           Be formally recorded

“No need for levies — we just split it” is not compliant.

 

 

📐 8. Boundary & Wall Clarity

In duplexes this is often misunderstood:

·           Is the dividing wall common property?

·           Has either lot altered structural elements?

·           Are fencing arrangements lawful?

·           Are boundaries clearly defined in the strata plan?

·           

 


 

⚠ Common Risks in 2-Lot Schemes

Non-compliance commonly includes:

·          No Capital Works Fund

·          No building valuation

·          No formal AGMs

·          Underinsured buildings

·          Informal cost-sharing arrangements

·          Unregistered by-law changes

Even if both owners agree — these are still breaches.

 

🎯 Before You Sell (or Buy)

You should confirm:

1.    Current building insurance sum insured

2.    Date of last valuation

3.    Capital Works Fund status

4.    Any unpaid levies

5.    Dividing wall classification

6.    Any special levies determined pre-contract

 

💬 Need Help?

Small strata schemes are often the most exposed — because everyone assumes “it’s only two of us.”

If you would like:

·          A Duplex Compliance Audit

·          Dividing Wall Advice

·          A Sale Risk Memo

·          A Pre-Settlement Compliance Check

Let’s make sure your “simple duplex” isn’t carrying complex risk.

 

Call NSW Strata Specialists today for a free and independent assessment

NSW Strata Reforms 2025 — Wrap-Up & What It Means for Your Scheme

By MELISSA FRANZEN • January 23, 2026
2025 has seen one of the most significant waves of strata law reform in recent years in New South Wales. The NSW Government has progressively rolled out amendments under the Strata Schemes Legislation Amendment Act 2025 (NSW) across multiple tranches, delivering greater transparency, accountability, stronger governance, enhanced protections for owners, and clearer duties for strata professionals. 1. Early Changes: March & July 2025 — Governance, Accountability and Transparency From early 2025, several foundational reforms took effect, strengthening strata governance and operational transparency: Stricter reporting and disclosure requirements for strata managing agents — including enhanced transparency around commissions, related-party relationships, and reporting obligations. Governance and committee updates , notably easier removal of committee officers (chair, secretary, treasurer) by ordinary resolution rather than special resolution. ( Moirs Law ) Expanded rights around minor renovations and committee decisions , with clearer processes and automatic approvals where committees fail to decide within statutory timeframes. Tighter document access rules and timeframes for owners and committees, improving visibility of minutes, budgets and major documents. These early changes laid the groundwork for improved strata scheme rigour, boosting owner confidence and oversight. 2. October 2025 Reforms — Fairness, Compliance & Financial Hardship On 27 October 2025 , the next stage of reforms commenced, delivering some of the most impactful changes for strata schemes: Stronger Regulatory Powers NSW Fair Trading received enhanced investigation and enforcement powers — including the ability to demand documents, enter buildings to gather evidence, and issue compliance notices where owners corporations fail in their statutory duties. Financial Hardship Support Strata levy notices must now include a Financial Hardship Information Statement to assist owners experiencing financial difficulty. Owners can request standardised 12-month payment plans for overdue levies, with committees required to assess and respond within set timeframes. Restrictions on levy recovery actions apply while a compliant payment plan is in place. Building Manager Duties & Definitions Clearer definitions of who is — and is not — a building manager help reduce ambiguity in contractual roles. Building managers must act in the best interests of the owners corporation , promptly notify of maintenance and safety issues, and disclose any benefits or financial interests. Tribunal Powers Owners now have expanded grounds to apply to NCAT to change or end building manager agreements or strata management agreements in cases of poor performance or unlawful conduct. 3. Looking Ahead — April 2026 & Beyond The reform journey continues into 2026 with additional changes scheduled to commence on 1 April 2026 : Standardised 10-year capital works fund plans to improve long-term planning consistency across all schemes. Enhanced developer obligations at handover, including initial maintenance schedules and accurate levy estimates. Reforms to conveyancing disclosures, such as mandatory disclosure of exclusive supply networks in off-the-plan contracts. Mandatory strata committee training is planned for later in 2026 (commencement date to be advised). What This Means for Your Owners Corporation The theme of the 2025 reforms is clear: better governance, enhanced fairness, stronger compliance and more support for owners. Taken together, these reforms: ✔ Improve transparency and accountability of strata managers and building managers. ✔ Provide meaningful support for owners facing financial difficulty. ✔ Enhance the powers of regulatory bodies like NSW Fair Trading and NCAT. ( ✔ Strengthen long-term planning requirements and professional standards. NSW Strata Specialists continues to monitor these reforms closely and support owners corporations, strata committees and managing agents with practical compliance advice, documentation updates and educational resources. Stay tuned for further updates as more changes commence in 2026. And visit the NSW Government website for more information. https://www.nsw.gov.au/housing-and-construction/strata/guide-to-strata-law-changes-for-strata-committees-and-owners

Pest Inspections: Spraying VS Baiting Termites

By MELISSA FRANZEN • August 21, 2025
Termite Management in Strata: Why Baiting is the Responsible Choice

Governance, Developers, and Car Parking – What Else Has Changed in 2025?

By MELISSA FRANZEN • August 7, 2025
The 2025 reforms to strata and community scheme laws bring more than just minor tweaks—they reshape how schemes are governed, how costs are shared, and even how parking is managed. If you own in a strata or community title scheme, here’s what you need to know.