Duplex Strata Titled

Limegreen on 11/01/2022 - 21:22

I bought a duplex a couple of months ago, and noted that it was strata titled thereafter, I spoke to the owner of the adjoining property and we are both in agreeance that we would want to manage self manage the strata to save on strata costs.

Has anyone self managed a strata before?
What happens at the agm and both owners vote to self manage who manages the sinking funds account? Will this be transferred to both owners names? Or left as is ?
Insurance would then be purchase / renewed for both properties does one of the owners take charge of this?

What are the pros and cons of self managing ?

Home & Garden

Comments

  • Gunther on 11/01/2022 - 21:29
    +2

    Lawyer.

  • nedski on 11/01/2022 - 21:31
    +9

    How do you buy a property and not know it's strata titled until after the purchase?

    • Quantumcat on 11/01/2022 - 21:36
      +1

      Bad or non-existent conveyencer?

  • May4th on 11/01/2022 - 21:43

    pros - save on cost (you basically split whatever rates/maintenance/insurance in half and save on not having to pay inflated administrative/sinking funds), relative freedom to whatever you want to the property
    cons - you/the other owner will need to do all the work that is usually done by the strata committee/building manager, come to an agreement about common property maintenance, messy if there is a disagreement or dispute

    in short the best case scenario is you split costs evenly almost like a torrens title property, but with a lot more work and a lot more potential for things to go hairy

    • salmon123 on 12/01/2022 - 08:53

      split costs evenly

      Strata title allows for split in different ratios

      • May4th on 12/01/2022 - 12:03
        -1

        we're talking about a duplex, so split in 2 considering no common area in owner managed strata.

        • salmon123 on 12/01/2022 - 12:29
          -1

          we're talking about a duplex, so split in 2 considering no common area in owner managed strata

          Huh? not sure what you're smoking, but there's plenty of Duplex that are asymmetrical. Driveways, gardens, etc could all be common area depending how the scheme is set up.

          • May4th on 12/01/2022 - 12:32

            @salmon123: i'm talking about OP's situation, not what strata is in general…like everyone else in this thread..

            • salmon123 on 12/01/2022 - 12:33

              @May4th:

              i'm talking about OP's situation

              OP didn't mention any of those details you're assuming.

              • May4th on 12/01/2022 - 12:33

                @salmon123: what do you think duplex means? yes it can be proportionate as more commonly in the case of a townhouse/apartment complex, if we are talking about two identical dwellings and owner managed strata to save on cost the most efficient/practical way would be a 50/50 split regardless of whether you choose to have common properties, unless you can get your neighbour to agree on why they should pay more than you

                • salmon123 on 12/01/2022 - 12:47
                  -1

                  @May4th:

                  if we are talking about two identical dwellings

                  There's plenty of duplexes that aren't identical design.

                  Not sure why I've even arguing with you. I just pointed out a flaw in your comment and you can't seem to accept that.

                  • May4th on 12/01/2022 - 12:50
                    -1

                    @salmon123: i'm well aware they are out there, i'm working on the most likely scenario for the OP here. if you want to lecture on what strata scheme is that's fine but i don't see how it's relevant to the OP's query.

  • jug123 on 11/01/2022 - 21:45
    +5

    youd be better off spending the $$ and converting to Torrens Title if theres only two of you. It will save a lot stress for many yrs to come and potentially increase the value of your properties. The developer took the cheaper option

    • May4th on 11/01/2022 - 21:46

      no developer would choose to do a strata subdivision unless it was the only option (or they could get more dwellings out of the land, whicn wouldn't apply in this case). you'd be able to sell a torrens title property for a lot more than the council DA costs

      • serpserpserp on 11/01/2022 - 22:16

        no developer would choose to do a strata subdivision

        Unless it was a long time owner of the property who KDR a duplex. I always thought strata subdivision was cheaper/easier to do. Might depend state to state.

        • May4th on 12/01/2022 - 12:46

          for developers it's more commonly done when council / SEPP doesn't allow for subdivision due to min. lot size, or when you want to put 3 houses on one plot of land where a torrens title subdivision may only grant you two. it significant affects the value though. but yes it's subject to the state/council planning rules. some people KDR and build two houses for the extended family and then register the strata title later to sell

  • avoidfullprice on 11/01/2022 - 21:49
    +2

    Last I read up on the NSW strata act and regulations, management requirements for two-lots complex (i.e. duplex) is tad simpler than strata with three or more units.

    https://www.lookupstrata.com.au/nsw-strata-duplex/

    You really need to read the legal stuff yourself instead of hoping a forum will give you up a 5 minute summary with pros and cons.

  • Seraphin7 on 12/01/2022 - 10:30

    One consideration you need to take into account … and this is based on the experience of a close friend who entered a duplex situation without a strata manager … is that it all sounds great until there is a dispute.

    In the absence of a strata manager, everything simply comes down to "I reckon we should do this, do you agree?"

    If everyone is in agreement, then great … but if one party "always" wants to do something and the other party "never" wants to do anything, you're setting yourself up for running arguments. At least with a strata manager you have a third party that can add some perspective on what genuinely needs to be done from a property management/maintenance perspective, vs. what might be considered more discretionary.

    As always, DYOR and YMMV.

    • JimB on 12/01/2022 - 11:33

      That's a good point but there's nothing to lose.

      You can try it first, it if doesn't work out, you can always get a strata manager in.

      • Seraphin7 on 12/01/2022 - 11:34

        you can always get a strata manager in

        If the other party agrees to it.

        • JimB on 12/01/2022 - 11:53

          I think that if any property owner wanted a strata manager in, then one must be appointed.

          However, all property owners must agree if they don't wish to have strata manager.

          In Vic, previously, you could have up to 3 lots without a strata (if all owners agree).

          Any more than 3, you must have strata.

          Rules may have changed.

          • Seraphin7 on 12/01/2022 - 11:55

            @JimB: Not down with all the legalities of it, so would need to check that out. Just a word of caution that once you agree to change something, you don't necessarily retain the right to go back to the way it was if it doesn't all work out for you.

            • JimB on 12/01/2022 - 11:58

              @Seraphin7: I'm certain you'll be able to appoint a new strata manager if there is currently none in place or was previously dissolved.

          • wobblydrow on 14/01/2022 - 18:35

            @JimB: It's changed, we sold last year as part of a 2 lot subdivision. There is still a Strata (now called an owners corporation) but the new vic government rules say it can be non active, so we never had anything to do, didn't even need common property insurance. When we sold the conveyancer entered not active owners corporation into the section 32 documents and contract of sale.

            • JimB on 14/01/2022 - 20:33

              @wobblydrow: Good to know.

              I subdivided a property but never needed an owners corporation.

              When I sold one of the properties My lawyer recommended I take out public liability insurance for the common area. Reason was that the buyers could cancel the contract if the common property wasn’t insured.

              I don’t know the reason behind it, but I’m sure the lawyers wouldn’t recommend it for no good reason.

  • netbies on 12/01/2022 - 10:53
    +1

    Be mindful, there may be a reason the developer registered the duplex in strata title. E.g. there could be common property, e.g. driveway, as a separate lot which requires manage by the strata.

    Before you bought the property, your solicitor and the REA should have explained that to you or if you have asked.

    • Peter Enis on 12/01/2022 - 12:17

      Exactly, I had some "duplexes" built, they are basically two freestanding houses with a dividing fence down the middle. However, the meter box for house #2 actually goes via the meter box of house #1. It's all legit, separately metered etc, just how the builders wired it.
      So if ever I wanted to sell one and split the titles, I would have to keep that in mind, and would probably consider strata titling with a small amount of common property. Otherwise I'd probably have to re-do the electrical if I wanted torrens titles.

  • JimB on 12/01/2022 - 11:33

    How much is in the sinking fund?

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