Do I Need A Section 206 Disclosure Statement For My Duplex?

honeycomb cul de sacA duplex is defined as a house divided into two lots, each with it’s own entrance. Most, though not all, duplexes are characterised by joint wall(s) somewhere in the building.

Just because there are two lots in a duplex doesn’t necessarily mean there are two titles and the lots can be sold separately. Quite the contrary.

Lots of people use duplexes as an investment strategy. They live in one apartment and rent out the other. The two homes have one title and one owner.

That said most duplexes are strata titled so the two homes may be sold to two different lot owners.

The process of strata titling, creating two titles, also creates a body corporate which holds the common property of the two lots.

How to check if a duplex is strata titled

When you list your property for sale most reputable real estate agents will first and foremost do a title search to make sure that you can actually sell the lot.

The title search has all the information relating to your lot including any other parties who might have an interest, such as a mortgagee.

A body corporate is definitely a party that has an interest and consequently that interest shows up on the title search.

As with most things government it might not be easy to spot. Look around the real property address, being the lot and plan number, and if the property is part of a body corporate the CTS number of that body corporate will be displayed (its a four or five digit number).

If a duplex lot is part of a body corporate then it must have a section 206 disclosure statement included in the contract for sale.

What if the body corporate is not active?

A lot of duplex owners say “there is no body corporate” or “the body corporate is inactive” which isn’t exactly true.

In reality the shared business is minimal and basically they just pay the joint insurance once a year and keep out of each others way. Which is pretty much what every other body corporate does, just with more formality.

What they really mean is there are no records and no joint bank accounts. Most importantly, there are no levies issued.

Section 206 of the BCCM Act states that the current levies payable at the time of sale must be disclosed to the purchaser prior to entering into the sale. Even if that amount is NIL it still needs to be disclosed by way of a disclosure statement.

Preparing a disclosure statement for a duplex can certainly prepare a disclosure statement for a duplex.

To do that we ask the owner a whole bunch of questions and then produce a document. In most cases it will almost be like doing it yourself.

Consequently I recommend that lot owners do it themselves. 

Below are instructions on how to complete a section 206 disclosure statement for a duplex. There are screen shots of how each section should look when completed and below the instructions are a completed form for reference. Use them at your own risk.




If your body corporate does have joint bank accounts and records then you will be better served have a section 206 disclosure statement prepared for you.


A little knowledge can go a long way

I see so many stressful and frustrating issues in body corporate records that result from simple misunderstandings it hurts my head. If I could do one thing to help it would be to teach everyone the basic rules, so they can avoid all these dramas.

With that in mind I've put together a short eBook that sets out the basics everyone owning in a body corporate really should know. It won't make those big issues go away, but it will give you a firm grounding from which to communicate.

It's completely free, so please, download it now!

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