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We have just purchased into a 2.5 year old 20 unit apartment block. Around 14 apartments were sold off plan. The strata entitlements have not been based on sized but what they thought the apartments would be sold for. The last 6 apartments have very large entitlements. Eg two units on the same floor, one has 347m2 on title, purchased off plan. One has 192m2, purchased 12 months ago. The strata fees are higher on the 192m2 by 25%. Can anything at all be done to rectify this or are we stuck with it?
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First of all, Unit Entitlements (UEs) are not calculated solely on the size of an apartment and, in fact, bear closer but not exact relationship to the value of the property. Thus a three bedroom unit at the back of a building can pay less in levies than a single-bedroom unit on a higher floor with views.
However, if there is a serious discrepancey, for instance where UEs have been deliberately reduced to favour one vendor – usually on a commercial space or a penthouse – you can petition to have them changed by a tribunal but it is a hideously expensive process involving surveyors, accountants and lawyers.
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Why is it so expensive to have unit entitlements reviewed? The government sets the rules for Strata and it should be seriously reviewing how to look at this issue fairly and streamline the process to make it make sense!
i live in a 3 bedroom villa of 10. There are 7 x 2 bdrm villas. 1x 3 bdrm & 2x 2 bdrm town houses. All different scale. I have 13/100 UE but not the largest interior space!
However my home has no view as the others enjoy. My levies are 13% and others are 9%. I get all the noise and inconvenience of every delivery car and truck, every visitor to site knocks on my door , my 2 neighbours opposite installed solar without strata approval , on their rooftops overlooking the driveway and that has become my ugly view ! and I volunteer on the committee because majority of owners dont participate.
My UE simply means I pay bigger levies for a smaller return !
Anyone else in same boat ? I would be interested in hearing of anyone being successful in challenging the status quo of disproportionate UE’s as no doubt there are some of us paying higher levies which doesnt really make sense.