Unit Entitlement Assessment

At PVG valuers we offer great service with competitive rates and fast turnaround times. If you require a unit entitlement valuation then we can gladly help. Our valuations are conducted by experienced and certified valuers who have access to the most current market data to derive the most accurate valuation for unit entitlement purposes. Here are some commonly asked questions from our clients and everything you need to know about unit entitlements.

What are unit entitlements?

Unit entitlements determine the proportion of ownership a lot owner has in a strata or community subdivision including the common areas. They determine the legal and financial obligation of a stakeholder within a strata or community development. They directly impact voter’s rights (within the owners corporation), an owner’s stake hold in the development upon disposal or termination of a scheme.

What is the fairest way to calculate unit entitlements?

The most ideal way is to assess entitlements based on the market value of the property rather than its strata area alone.

Why are unit entitlements important?

Correct unit entitlement apportionment is important for fairness of payment into strata levies and sinking funds. Incorrect entitlements can lead to significant financial loss for a lot owner. An injured party can overpay and incorrectly contribute into a scheme in what is often several years before they become aware. Furthermore, having entitlements amended post apportionment can be a daunting and difficult task.  The unit entitlement determines your share of strata levies, other potential contributions, land tax obligation and council rates so it is of the utmost importance to get it right the first time.

How are the unit entitlements determined/calculated?

Unit entitlements are assessed by qualified registered valuers who inspect the strata development to first determine individual values and then correctly apportion entitlement to each lot before the strata/community plan is registered. To calculate the entitlement for a property the valuer must determine the properties value using the appropriate valuation methodology.

Do I need a property valuer or surveyor to complete the schedule of unit entitlements?

Due to recent changes to strata legislation (aimed to improve the system) and which in came into effect November 2016, a qualified registered valuer will be required for an apportionment of unit entitlements. It should be noted a qualified valuer  has met all the educational and training requirements, is an associate member of the Australian Property Institute (API) and is certified practicing valuer (CPV).

How long does it take the valuer to complete the unit entitlements schedule?

This is typically a quick process of 3-5 business days (or less for urgent matters) depending on the size and complexity of the development. Contact us today for a more accurate assessment.

When do I have to complete the unit entitlements for a project?

At the completion of a development/project.

How much does it cost to complete the unit entitlements?

The cost varies based on the size and complexity of the development. Given our business model and low overheads our fees are very competitive. Please contact us for an obligation free quote.

Can existing unit entitlements be changed?

It is possible in some cases. The NSW Civil and Administrative (NCAT) have the power to order changing of unit entitlements. Please click here for more information.

What to do if you disagree with the unit entitlements?

If you believe your unit entitlements have been unfairly calculated it can be a difficult process having the entitlements change for existing strata plans. PVG valuers can review your entitlements and in some cases may provide advice on amending entitlements. Further information can be found at the NS W government website.

Does the unit entitlement impact the value of the property?

Typically unit entitlements do not have a direct impact on property values and proving so could be a difficult task. However unfair or expensive levies may impact the marketability of a property when offered for sale.

IMPORTANT NOTICE: Recent legislation changes to the unit entitlement laws

There have been recent changes (as at November 2016) to strata laws in an effort to improve the apportionment process of unit entitlements. Previously, unit entitlements were typically determined by the developer or an appointed surveyor. The developer or surveyor would commonly calculate entitlements based on the size/area of the unit in relation to the overall project, leading to problematic and incorrect apportionment. The preferred and most amicable method is to determine entitlements based on individual unit value (which does not necessarily always reflect the largest unit in the development). A qualified valuer is to be appointed to assess unit entitlements based on current market values using appropriate valuation methods.

I require a unit entitlements report, what’s next?

Please click here to request an appointment, obligation free quote or if you require further information.