Two-lot strata with no owners corp

If it’s a strata scheme then the owners corporation (aka body corporate) exists by default. The strata committee comprises both owners (or their representatives) although it sounds like they may never have met.

Two-lot strata schemes are different and can be tricky, and I’m not sure about their obligations to hold meetings and issue minutes but I imagine they would be the same as other small schemes (less than 100 lots).  Otherwise to answer your questions:

How are the cost of repairs divided?

The costs are divided according to the unit entitlements.

The roof tiles need replacing who pays?

Unless there is something on the strata management plan to say otherwise, the roof is common property and the costs of repairs are decided according to unit entitlements, in this case, 70-30.

Voting rights ?

Same.  In this case 70-30 although anything that requires a special resolution would need a unanimous vote

What does the legislation require ?

Much the same as for other strata schemes, except that owners in 2-lot schemes can agree unanimously not to have a maintenance (sinking) fund and not to have collective strata insurance provided they are separate buildings (which would not apply in this case).

There are only 2 by-laws?

In the case of the scheme having no by-laws for specific issues that are covered in the Model By-laws for NSW, the model by-laws would prevail (although they might have to agree on which of the pet by-law models to adopt).

You might find that a lot of disputes in 2-lot strata schemes end up in the Tribunal, especially over issues about repairs and maintenance.  One example might be, where the minority owner wants the owners corp to fix common property and the majority owner doesn’t want to pay for it, despite there being statutory duty to do so.

Have a look at Fair Trading’s Strata Living Guide for more information.

We moved into a 2 lot strata building 7 years ago: our downstairs neighbours have 60% and we have 40% . We have AGMs every year with the strata manager and all common costs are split as per the percentage. We are not “friends” with our neighbours but are friendly. We are lucky that everyone is reasonable and understands that the building needs to be maintained to a certain standard if we are to protect our individual investments. We all want to live in a lovely, clean, well run building. It’s more work, I presume, than a building with more apartments: we have to be home to let the fire inspections in, to get the pool serviced etc etc. Also we take on a lot of that type of organisation rather than going through the strata manager only because it’s faster and more efficient. If the garage gate is broken, one of us will call to have it repaired, pay for it, and get reimbursed by strata. It works if everyone is on the same page.