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  • #7877
    equus
    Flatchatter

      Surely there should be a case for changing the legislation for reviewing blatantly unfair unit entitlements?

      I own the least desirable unit in a block of 15 built in Balmain in the 1960s. Several of the best units were sold by the developer to his mates, who mostly still own them.

      All units have the same entitlement, but run across the whole gamut of value.

      On each of 3 floors there are 2x2br, 2x1br, and 1 studio (I believe these were initially planned/passed as laundries).

      I own the studio on the ground floor at the back of the building which faces south and overlooks the common car-park area (!).

      The best 2 br units face north and have an unimpeded view of the Harbour and Bridge (!) They also have balconies.

      There is absolutely no comparison in value – yet we all pay the same levies. Those with the cheaper units subsidise those with expensive ones.

      I bought mine as an investment in 1994 and as the costs for the building were then quite low it was not a problem (also I have to admit that being young and naive I did not realise the situation when I was sold the unit).

      Now as time goes by, more and more repairs are required to this ageing building and it seems extraordinary to me that there cannot be some changes to exisiting legislation to make it easier for justice to be done in these instances.

      I have been advised in the past that the cost of raising a case in court would be prohibitive.

      Yet rectifying anomalies like this should surely be a priority in any review of relevant legislation?

      Many thanks for reading my beef! I would be glad to hear other views

      EquusSurprisedCry

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    • #14620
      Jimmy-T
      Keymaster

        It's hard but not impossible – and this is one of the few areas where your costs in taking action can be awarded against the developer by the CTTT.

        The CTTT can also award repayment of excess levies back to the individual owners who have been ripped off (in what sounds like a very cynical con job).

        Have a look at the relevant section of the Act (below), count up how much you think you have overpaid and if it runs to the thousands rather than hundreds of dollars, your next call should be to a specialist strata lawyer who will guide you through what you need to do to put things right.

        Your biggest problem may be getting a valuation – the people who are underpaying aren't going to invite a valuer in just so they can pay more – but there are ways round that which a lawyer will explain.

        Anyway, here's what the Act says:

        183   Order for reallocation of unit entitlements

        (1) Tribunal may make order allocating unit entitlements
        The Tribunal may make an order allocating unit entitlements among the lots that are subject to a strata scheme in the manner specified in the order.

        (2) Circumstances in which order may be made
        An order may be made only if the Tribunal considers that the allocation of unit entitlements among the lots:

        (a)  was unreasonable when the strata plan was registered or when a strata plan of subdivision was registered, or

        (a1)  was unreasonable when a revised schedule of unit entitlements was lodged at the conclusion of a development scheme, or

        (b)  became unreasonable because of a change in the permitted land use, being a change (for example, because of a rezoning) in the ways in which the whole or any part of the parcel could lawfully be used, whether with or without development consent.

        (3) Matters to be taken into consideration
        In making a determination under this section, the Tribunal is to have regard to the respective values of the lots and (if a strata development contract is in force in relation to the strata scheme) to such other matters as the Tribunal considers relevant.

        (4) Application to be accompanied by valuation
        An application for an order must be accompanied by a certificate specifying the valuation, at the relevant time of registration or immediately after the change in the permitted land use, of each of the lots to which the application relates.

        (5) Qualifications of person making valuation
        The certificate must have been given by a registered valuer under the Valuers Act 2003 authorised under that Act to make such a valuation (a qualified valuer).

        (6) Ancillary orders that may be made if original valuation unsatisfactory
        The Tribunal may, if it makes an order allocating unit entitlements that were not allocated in accordance with a valuation of a qualified valuer and, in the opinion of the Tribunal, were allocated unreasonably by a developer, also order:

        (a)  the payment by the developer to the applicant for the order of the costs incurred by the applicant, including fees and expenses reasonably incurred in obtaining the valuation and the giving of evidence by a qualified valuer, and

        (b)  the payment by the developer to any or all of the following people of such amounts as may be assessed by the Tribunal to represent any overpayments (due to the unreasonable allocation) for which liability arose not earlier than 6 years before the date of the order:

        the lessor of a leasehold strata scheme

        the owners corporation

        the owners of lots.

        (7) Recovery of amounts awarded
        An amount ordered to be paid under this section may be recovered as a debt.

        (8) Who may make application?
        An application for an order under this section may be made only by:

        (a)  an owner of a lot (whether or not a development lot) within the parcel, or

        (b)  the owners corporation, or

        (c)  the lessor of a leasehold strata scheme, or

        (d)  the local council, or by any other public authority or statutory body representing the Crown, being an authority or body that is empowered to impose a rate, tax or other charge by reference to a valuation of land.

        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.
        #14619

        This is a very interesting topic and I have wondered about changes to unit entitlements in our complex of towhhouses. There are varying entitlements in place relative to the size, position etc of towhhouses.
        In the strip where I own, 3 properties have extended up to a 3rd level, all done in accordance with by-laws, OC approval and DAs from council. However none of these have had their unit entitlements (and levies) recalculated to reflect the increase in floor space, views and of course value.
        Any suggestions about having this issue addressed? It does not seem fair and equitable to me, and of course I don’t have a 3 level townhouse, and if I did decide to renovate one day, I’d expect to be paying accordingly for the increases.

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