#57834
Jimmy-T
Keymaster

    Re the Unit Entitlements, I read somewhere that size didn’t matter (so to speak); it was the value that did. So thanks for clearing that up.

    Unit entitlements are roughly related to the value of the unit when first built, and that in turn is related to the size and location.  So, for instance you could potentially have a small unit with a great outlook with the same UEs as a large unit with no outlook.

    However, as the building matures and improvements are made to some units but not to others, the relationship between the value at sale of the apartments and their UEs diverges even further.

    Throw into the mix that fact that some developers (who set the initial UEs) might scale them down on more expansive flats to make them easier to sell, then there is no direct correlation between the value of the units and their UEs.

    On the question of raising the issue at your AGM, all you have to do is convince the majority of owners that they are being ripped off to benefit a minority and they can tell the chair what to do, rather than the other way round.  And unless the chair has actually costed the process, their argument will carry little weight, especially if they are benefitting from this imbalance.

     

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.