#76323
tina
Flatchatter

    Here is an explanation of unit entitlements

    There is a fixed total number of unit entitlements.  Each lot is allocated a fraction of this total.  How much unit entitlement is allocated depends on things like the size of the lot, balconies etc.  The unit entitlement determines how much levy the owner pays.  The higher the unit entitlement, the higher the levy.

    Suppose a strata plan has a total 1,000 unit entitlements.  Each lot was allocated either 122, 125 or 128 unit entitlements, depending on their size and position in the strata plan.  If the owners corporation has an annual budget of $100,000:

    Lots with 122 unit entitlement pay $12,200 annual levy

    Lots with 125 unit entitlement pay $12,500 annual levy

    Lots with 128 unit entitlement pay $12,800 annual levy

    Unit entitlements can also be used to count votes in a general meeting, if poll voting is adopted.

    In NSW, Strata Schemes Management Act 2015 Section 236:  Order for reallocation of unit entitlements

    You can ask the Tribunal to make an order to reallocate the unit entitlements if you can prove that the existing regime is “unreasonable”.  Any individual lot owner can make an application (paragraph 3).  You don’t need to pass a resolution at a general meeting.

    I suggest you ask your strata manager what the unit entitlement is of each lot.  This should be shown on the plot plan or Certificate of Title.  Speak to a strata lawyer if you think the owners with a balcony should pay higher levies.  The strata lawyer could help you assemble an application to NCAT, if you are unsure of doing it yourself.