Question: I own in a 2-lot strata scheme. When the strata scheme commenced ten years ago, a capital works fund was established. Can we now cease the capital works fund, or must it continue once it has been established?
Answer: As you are a 2-lot scheme, an exemption may apply.
As you are a 2-lot scheme, the following exemption may apply. However, it does require a unanimous resolution, and the scheme needs to satisfy paragraphs (b) & (c):
74 Capital works fund
….- Exemption An owners corporation for a strata scheme comprising 2 lots need not establish a capital works fund if—
- the owners corporation so determines by unanimous resolution, and
- the buildings comprised in one of those lots are physically detached from the buildings comprised in the other lot, and
- no building or part of a building in the strata scheme is situated outside those lots.
This post appears in Strata News #690.
Leanne Habib Premium Strata E: info@premiumstrata.com.au P: 02 9281 6440