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  • #11426
    Enough of Strata
    Flatchatter

      My wife purchased a unit in a 10 unit block, erected in 1985.  All the Lot No’s have a “Unit entitlement of 1 each” with aggregate of 10 for the whole Strata.

      This means that each Lot is levied 10% for the Admin & Sinking funds, and this appears to have been the situation since registration.

      However when looking in  detail at the Plan of the Strata (same document showing the Unit Entitlement) it also shows the individual size of each Lot, (Apartment, balcony, garage and storage area), & clearly half the lots are different in size.  They range in total area from 87Mtrs Sq to 126Mtrs Sq.   Specifically, Lot sizes are 126 (1); 116 (1); 94 (3); 87 (5).   

      On this basis the smaller sized Lots are paying the same levies as the larger sized Lots and therefore more than they should.

      It appears that the allocation of the Unit Entitlement at registration was incorrect (sloppy), did not accurately reflect the actual size of the Lots, and was likely not picked up.

      My question is does anyone know if this can be rectified and if so what the process is likely to be. 

      E.g.   Should it be a matter for the Owners Corporation to decide upon at a General meeting, (I can see those with the larger unit entitlement would not want to see a change) or can an individual owner or group of owners seek to have the unit entitlement changed to the more equitable basis, ie the actual size of each lot.

      Any feedback would be appreciated, particularly from anyone who might have a background in Strata.

      Thanks in advance – Winston.

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    • #28543
      Jimmy-T
      Keymaster

        The simple answer is yes, under section 87 (below) you can seek orders at NCAT to reassign the Unit Entitlements.

        The easiest way to do it is to get everyone to agree but, as you said, you can’t get turkeys to vote for Christmas, and the owners of the larger properties may disagree.

        The next best thing is to get a majority of owners to make an application to NCAT as a body.  This is possible, especially if six owners would be paying less and four paying more, and would certainly defray some of the expenses.

        If that fails, you could seek orders yourself but add an additional request that the Owners Corp pays the costs.

        Those costs will include a professional assessment by an experienced strata quantity surveyor, because it’s not just size, it’s aspect and amenity.

        But clearly a large penthouse flat with a northerly view should be paying more in levies than a small ground floor flat permanently in the shade.

        87 ORDERS VARYING CONTRIBUTIONS OR PAYMENT METHODS 

        (1) The Tribunal may, on application, make either or both of the following orders if the Tribunal considers that any amount levied or proposed to be levied by way of contributions is inadequate or excessive or that the manner of payment of contributions is unreasonable:

        (a) an order for payment of contributions of a different amount,

        (b) an order for payment of contributions in a different manner.

        (2) An application for an order may be made by the lessor of a leasehold strata scheme, an owners corporation, an owner or a mortgagee in possession.

        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.
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