Collapsed Ceiling

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?

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”.