Thanks Aquarian, that fills in a few gaps. So the scheme is relatively recent. It is true that valuations based on purchase price may not be accurate, given that some of the transactions may not have been at arms length. But it would not be difficult for a qualified independent valuer to do a proper valuation of the lots at the time the scheme was registered.
Re Kangaroo’s question – how do you work out the value (at the time of registration)? That is what a valuer does. If you look at the unit entitlements cases, there are lots of examples of valuations being given for schemes built a long time ago. Bear in mind that the Land Titles Office records the prices paid for properties when they change hands, if you want to you can find out what any property sold for, by doing a search.
“Value” is an elastic concept, and you can have both a subjective and objective valuation. So just because someone buys something for certain price, that doesn’t mean that will the value ascribed to it by a valuer. Refer this from one case:
The values of the lots are to be determined by a valuer. The High Court in Spencer v the Commonwealth [1907] HCA 82; (1907) 5 CLR 418, defined how to arrive at the valued – that is the “willing but not anxious vendor and purchaser”. In many cases to ascertain this it is necessary to obtain evidence of prices in surrounding properties at or near the relevant time….
So a report giving the value of the properties now isn’t going to assist, and from what Aquarian has said, it sounds like the valuer hasn’t even given a basis for his/her conclusions. What you need to do is engage an independent valuer and instruct them to provide a valuation of the lots at the time of registration. The reason I keep saying independent is because I get the feeling that the current valuer is not independent, but I could be wrong. At the extreme, the owners of the penthouses may find that the entitlements should be readjusted in a way that is not in their favour.
Here are some cases to give you a feel re the CTTT approach.