Insurance Exemption for 2-lot subdivisions

Certain insurance exemptions exist for 2-lot subdivisions under section 7 of the Owners Corporations Act 2006.

These include:

• Division 6 of Part 3 (sections 54 to 65) of the Act regulates insurance.  Two lot subdivisions are exempt from compliance with:
  • section 59 requirement to take out common property reinstatement and replacement insurance;
  • section 60 requirement to take out common property public liability insurance;
  • section 61 requirement for reinstatement and replacement insurance and public liability insurance for all lots if a building is located above or below common property, a reserve or a lot,
  • section 62 permitting the lot owners to resolve to insure any additional insurable interest;
  • section 65 requirements for prescribed owners corporations to obtain a valuation of all buildings that it is liable to insure, renew the valuation every five years etc.

Other Exemptions:

• The various other compliance exemptions under the Act for 2-lot subdivisions include:
  • section 18: special resolution required to bring legal proceedings.
  • section 31: formal fee notice required
  • section 32: formal final notice required.
  • section 93: chairperson has a casting vote only if the voting is equal etc.
  • section 94: a lot owner cannot vote if fees are unpaid
  • section 95: What is a unanimous resolution? See above.
  • section 96: What is a special resolution? See above.
  • section 97: Interim special resolutions.
• The following Divisions are also exempt from compliance:
  • Part 3:
    • Division 2 Accounts and Audit
    • Division 3 Maintenance Plan
    • Division 4 Maintenance Fund
  • Part 4
    • Division 1 First Meeting of Owners Corporation
    • Division 2 Annual General Meeting
    • Division 3 Special General Meetings
    • Division 4 Procedure at General Meetings           
    • Division 5 Ballots
  • Part 9
    • Division 1  Keeping of Records
    • Division 2  Owners Corporation Register
  • Part 10:
    • Division 1 Complaints and Procedures