Question: How hard it is to get an application for the amendment of Unit Entitlement through SAT? The lot owner who benefits from the division is opposed to a voluntary re-evaluation.
What is the situation when Unit Entitlement are disproportionate to the value of the strata shops in a complex as described in section 37(2) of the STA.
The lot owner who benefits from the division is opposed to a voluntary re-evaluation. We are wondering how hard it is to get an order through SAT in WA to have the complex revalued for the purpose of UE correction.
If we end up pursuing the matter through SAT, what evidence would need to be presented? If it was shown that one shop has half the UE of another shop that is double the size with no other difference in aspect, would that be enough to get an order for the strata to pay for revaluation or would we have to pay for a revaluation of the whole complex?
Our strata manager is saying that she does not know of a successful application for the amendment of UE through SAT. The disproportion happened 20 years ago when a large shop was split into 3 shops and they simply divided up the UE of that shop between the smaller shops. I believe they should have had the whole lot revalued at that time.
Answer: There have been many successful applications.
The “Requirements for registration of amendment of schedule of unit entitlements” is contained in section 38 of the STA.
It is possible to lodge an application to the Tribunal (SAT) to have the Unit Entitlements (UE) amended and there have been many successful applications.
The main focus is the evidence that would require a Licensed Valuer to submit a valuation report and a new Schedule of UE done.
It would be up to the Valuer to assess the UE points for all the Lots in the strata scheme.
It would appear that you would be unlikely to get the strata company to fund the cost of a Valuer to enable you to lodge the application.
You may be able to request a reimbursement of that cost in your SAT application, but I don’t know if that would be successful.
This post appears in Strata News #530.
Shane White
Strata Title Consult
E: shane.white@stratatitleconsult.com.au
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