Question: Can strata funds be used to pay for a revaluation of unit entitlements if not all owners agree?
A group of owners holding the majority vote wants to engage a valuer using strata funds to revise unit entitlements for all owners in an attempt to reduce their strata fees. The vote to change unit entitlements has not been taken, but we know it will not pass without about 15% dissent. Can strata funds be used to pay for a revaluation when not all owners agree?
Answer: A licensed valuer sets unit entitlements, and the strata company may approve the valuation cost by ordinary resolution or through the council of owners.
The unit entitlement (UE) of the lots in a strata or survey strata scheme is set in accordance with section 37 of the Strata Titles Act 1985 (STA1985). The UE of schemes created since 1985 is set by a licensed valuer. The valuer sets the values by determining the capital value of the lot in proportion to the total value of the lots in the scheme (aggregate of unit entitlement). Capital value is used for a strata scheme, and site value is used for a survey strata scheme.
Your question relates to the resetting of the UE, and particularly the cost of the valuer. The approval of the valuer’s cost ultimately depends on expenditure approval. If the expenditure is presented as part of the strata company’s budget or budget amendment, it would be an ordinary resolution (passed by more than 50% of the lots or by more than 50% of the unit entitlement) to approve this expenditure. The council could probably approve this expenditure of owners under section 102(6)(a), given the cost is likely low enough for this to occur.
I understand that the point raised is “why spend the money if the change to the UE is not likely to pass”. The strata company may intend to seek to have the resolution passed via the State Administrative Tribunal, should the motion fail to pass via Resolution Without Dissent at a general meeting of the strata company.
The value of the UE is set by a licensed valuer. It is important to remember that the UE will not change simply because a lot owner or group of lot owners wants the UE to change. A variance in proportionate value would need to exist for the UE to be changed. If this does exist, I believe the UE should be reset accordingly.
This post appears in the September 2025 edition of The WA Strata Magazine.
Luke Downie
Realmark
E: ldownie@realmark.com.au
P: 08 9328 0999
Is there a legal requirement for an extraordinary general meeting held to vote on raising levies , to have consent by all unit owners in an apartment strata in WA
Should the strata management company say in their Notice of EGM, what number of votes are required to pass this resolution ?
Should it be unanimous ?
Hi Nigel
The information contained in the related Q^A should assist:
Question: Can a Special levy be raised when we have money in both our Admin Fund and Reserve Fund?
Hi,
Could you please advise if a poll vote can be written on a motion to be submitted on the agenda for the AGM or is it required to be submitted orally or in writing at the meeting.
Thank you
Glenda
Hi geminimagoo
The following response has been provided by Andrew Chambers, Chambers Franklyn Strata Management:
Since the amendments to the Strata Titles Act 1985 that came into effect on 1st May 2020, the term ‘poll vote’ isn’t actually a defined term anymore. Section 122(3) of the amended Strata Titles Act 1985 now applies whereby ‘a demand that a vote be counted by the number of unit entitlements of the lots for which votes are cast’ can be made.
If the vote is being taken at a general meeting, then a demand for a count by the number of unit entitlements of the lots can be made either orally or in writing before the motion is put to the vote (i.e. a demand cannot be made after voting starts).
If the vote is being taken outside a general meeting (pursuant to Section 120(8)(b) and Regulation 89 of the Strata Titles General Regulations 2019) then a demand for a count by the number of unit entitlements of the lots can occur when the votes are being cast.
A demand for a vote counted by the number of unit entitlements may only be withdrawn by the person/s who made the demand.
It should also be noted that Section 135(3) of the Strata Titles Act 1985 applies if a demand for a count by the number of unit entitlements is made during an election of the Council of Owners.
It should also be noted that ‘a demand that a vote be counted by the number of unit entitlements’ is not a secret vote – the meeting chairperson will usually declare the number of unit entitlements of the respective lots entitled to vote before the motion is voted upon, and will usually mention the votes cast when declaring the result of the voting.
In the instance at an AGM where there are more nominees than the maximum 7 places and a paper ballot must be conducted, should the number of votes per nominee be announced along with the 7 councillors elected? Does either the strata manager or the chairman at the meeting have the right not to disclose the ballot count?
Hello Andrew Chambers,
I was interested in your comment that ‘In the event of a tied or equal vote the result is always in the negative’ but was unable to find this provision in sections 120-138 or in Regulation 89. Do you have any more information, please?
Regards,
heronhost
Hi heronhost
Thank you for your comment.
The following response has been provided by Andrew Chambers, Chambers Franklyn Strata Management:
It’s detailed at Section 123(7)(b)(i) & (ii) of the Strata Titles Act 1985.
You will need to check the plan of subdivision. Some developers have been known to give one unit (which they own) the lowest amount possible (sometimes even for the biggest space) – which means they pay the least in owners corporation fees. It should be equitable across the board. I am hoping this is regulated by government.