Scotty,
Yes, that would seem unreasonable.
But what if there is no copy of the valuation of the lots at the time of registration, because the scheme is older than that requirement, or a chain of SMs have “lost” bits and pieces over time?
As you say, there would seem to be no way to reallocate UEs, even if the OC passed a special resolution or even a unanimous resolution.
How do you fix the problem? There’s another Curly Q for the Minister.