Before you can even consider getting a unit entitlement property valuation you need to understand what a unit entitlement is. Although it may look like it’s just a number on the strata plan, a unit entitlement is actually much, much more. It is used to determine the percentage of ownership a lot owner has in the entire development, including within the common areas such as a barbecue area, swimming pool or shared spa, pool and sauna room. A unit entitlement is important for defining the legal rights and responsibilities that a property owner has within a strata or neighbourhood development. There can be significant consequences if the unit entitlement is valued incorrectly.
If it is valued incorrectly there could be consequences on the owner’s:
Voting rights;Share of strata levies and maintenance payments;Share of excess capital or money received;Financial entitlements following the scheme’s termination;Share of the property’s common areas;Depreciation allowance for the investors;Council rates and land tax division.
Unit entitlements are calculated at the time the strata development is first created or if there is a major change within the development. Until recently the allocations were assessed by the developer themselves which would lead to unit entitlements being valued incorrectly. Now it’s a requirement that unit entitlements are valued by an independent property valuer which has improved the value of unit entitlement valuation reports.
Why a unit entitlement valuation is essential?
A unit entitlement valuation is useful for calculating:
Your share of the strata levies;Your share of the common property;Your voting rights in any strata polls.
Getting an accurate unit entitlement valuation is important because if you don’t then your voting rights could be less than they should be if your unit entitlement is undervalued. On the other hand, if your unit entitlement is overvalued then you may pay too much in strata fees and levies.
Why choose NT Valuers for your unit valuation?
NT Valuers belongs to a nationwide firm so we have robust steps in place to ensure consistency in our valuation reports. Before they go out into the field, our valuers have obtained at least 15 years of local valuation experience and they are Certified Practising Valuers (CPVs) with the Australian Property Institute (API). We encourage our staff to participate in training and development programs to enhance their skills.
Before our unit entitlement valuation reports are sent out they undergo a quality control process to ensure that they meet are high standards.
To get started with the process give us a call on (08) 8911 1505.