#19869
Jimmy-T
Keymaster

    @scotlandx said:

    Unless the OC is pretty certain that the entitlements were unreasonable at the time of allocation, then they should ask themselves why they are making the application.

     

    I guess one good reason would be if the developer had set the UEs themselves and skewed the figures for the larger units or commercial properties to either benefit themselves (or mates) or to make them more attractive to purchasers.  That’s when this delicious clause kicks in, meaning the developer has to pay back any over-payments plus the cost of making the application: 

    183   Order for reallocation of unit entitlements

    (6) Ancillary orders that may be made if original valuation unsatisfactory

    The Tribunal may, if it makes an order allocating unit entitlements that were not allocated in accordance with a valuation of a qualified valuer and, in the opinion of the Tribunal, were allocated unreasonably by a developer, also order:

    (a)  the payment by the developer to the applicant for the order of the costs incurred by the applicant, including fees and expenses reasonably incurred in obtaining the valuation and the giving of evidence by a qualified valuer, and

    (b)  the payment by the developer to any or all of the following people of such amounts as may be assessed by the Tribunal to represent any overpayments (due to the unreasonable allocation) for which liability arose not earlier than 6 years before the date of the order:

    the lessor of a leasehold strata scheme

    the owners corporation

    the owners of lots.

    (7) Recovery of amounts awarded
    An amount ordered to be paid under this section may be recovered as a debt.

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