A unit entitlement refers to your share of a strata scheme and is used to calculate:
The amount of levies you have to pay;Your voting power in the strata scheme;Your share of the common property;Your right to any compensation paid by a government entity;Your right to any surplus funds in the owner’s corporation’s fund.
Unit entitlement is extremely important and could cost you money and opportunities if your share has been incorrectly valued. You could either end up losing out on compensation, paying higher levies than you should or having your voting power reduced.
Generally, unit entitlements are calculated based on the developer’s estimate of the market value of a unit within a development. A developer calculates the unit entitlement based on the value of the ‘unimproved’ site, without considering the value of any buildings or structures on the unit lot. The developer may base their valuation on the size of the lot and land values at the time of valuation.
Why choose Valuations ACT?
A real estate agent valuing property may overvalue your unit entitlement whereas a bank valuer could undervalue your unit entitlement.
Valuations ACT are an independent valuation company with a strong track record in valuing property for a range of purposes including:
Building insurance;Capital gains tax;Current market value;Deceased estate;Family law;Pre-purchase/Pre-sale;Property settlement;Retrospective;Separation;Stamp duty;Superannuation fund;Unit entitlements.
Due to our wide-ranging experience, we know what needs to be included in a valuation report and will complete it to the highest quality within a short timeframe.
If you’d like more information about what a unit entitlement valuation is or want to find out what your unit entitlement in your strata scheme is then contact us on (02) 6189 2232.