Two-Lot Subdivisions, Shared Driveways and 'Inactive' Owners Corporations in Victoria: What Are Your Rights?

In a two-lot subdivision in Victoria with a shared driveway, both owners automatically become members of an owners corporation (OC) that controls common property the moment the plan is registered. (See Subdivision Act 1988 (Vic), s 28.)

Even if no meetings happen and no manager is appointed, the OC still exists and the model rules restrict how owners/occupiers can use common property—particularly around parking/obstructing driveways and unreasonable noise/interference. If informal requests fail, you can escalate via the owners corporation dispute pathway explained by Consumer Affairs Victoria and (where appropriate) the VCAT Owners Corporations process.

Understanding Owners Corporations in Two-Lot Subdivisions

Many Melbourne buyers assume body corporate rules only apply to large apartment blocks. In reality, any Victorian subdivision creating separately titled lots with shared land—a driveway, bin alcove, or utility easement—can trigger an owners corporation under the Owners Corporations Act 2006 and the Subdivision Act 1988. (See Subdivision Act 1988 (Vic), s 27A and s 28.)

For a 2-unit subdivision, the OC comprises both lot owners. A 2-lot OC is treated as a “tier five” OC under the Act. (See Owners Corporations Act 2006 (Vic), s 7(6)(a).) You do not need a strata manager, formal meetings, or other “big OC” processes for the OC to exist—because the OC is incorporated on registration and members are the lot owners from that point. (See Subdivision Act 1988 (Vic), s 28(1).)

Also, many of the usual administrative requirements for larger OCs don’t apply to 2-lot OCs because they are exempted from specified sections/divisions. (See Owners Corporations Act 2006 (Vic), s 7A.) However, the legal entity still exists, and the rules governing conduct and use of common property still matter day to day.

Common Property Rules and Neighbour Obligations

Common property in a two-lot subdivision typically includes the shared driveway surface, fences along boundaries, and any landscaping noted on the plan of subdivision.

Key prohibitions without OC consent (or where the model rules otherwise prohibit the conduct):

• Parking vehicles, trailers, or boats on the driveway if it obstructs access (see the model rule on vehicles and parking on common property)
• Storing personal items, building materials, or waste (where it obstructs lawful use/enjoyment of common property or impacts others’ comfort—see model rules on obstruction of common property and waste disposal)
• Installing gates, bollards, or structures that alter common property without written approval (see the model rule on damage/alteration of common property)
• Creating noise or nuisance that unreasonably interferes with others’ peaceful enjoyment (see the model rules on behaviour on common property and noise and nuisance control)

If a neighbour parks on common property or uses the shared driveway as storage in a way that obstructs lawful use, they may be breaching the model rules. (See Use of common property and Vehicles and parking on common property.)

What to Do When Your Owners Corporation Is "Inactive"

An inactive OC simply means no one has been running things formally. The legal framework still applies because the OC is incorporated on registration and the lot owners are its members. (See Subdivision Act 1988 (Vic), s 28.)

Practical first steps:

1. Document the issue: photograph obstruction, note dates and times of noise or aggressive behaviour, and keep copies of any messages sent to the neighbour (record-keeping is part of the dispute approach described by Consumer Affairs Victoria)
2. Put the complaint in writing: for example, identify the relevant model rule and what you want done (CAV outlines an internal complaints process, including complaint forms/notices)
3. Propose a simple written agreement/resolution: for example, “no parking or storage on the shared driveway except for brief loading,” signed by both owners (noting that for 2-lot OCs, “special resolution” and “unanimous resolution” effectively require both owners’ votes—see Owners Corporations Act 2006 (Vic), s 7A(2))

If the neighbour refuses to cooperate or ignores requests, you are not powerless.

Escalation: Dispute Settlement Centre of Victoria and VCAT

Consumer Affairs Victoria sets out a three-step pathway for owners corporation complaints, including escalation options and record-keeping. (See Complaint handling and resolving disputes in an owners corporation.)

If the dispute can’t be resolved internally, a lot owner/tenant/manager may seek dispute resolution assistance through the Dispute Settlement Centre of Victoria (DSCV) (noting DSCV generally requires all parties to agree to participate). (See the CAV explanation of Step 2: DSCV dispute resolution.)

If that fails (or where you proceed directly), you can apply to VCAT in the Owners Corporations jurisdiction. (See VCAT: Owners corporations disputes and the application options/forms.)

VCAT can make a wide range of orders in owners corporation matters, including orders requiring someone to do something, orders about money/damages, and appointments/removals of office-holders (depending on the case). (See Consumer Affairs Victoria’s summary of what VCAT can do.)

Application and hearing fees vary and are updated regularly; check current amounts on the official VCAT fees page.

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