apartment land tax where land is not split evenly

I have an IP in a 6-pack where one unit owns the whole back yard (the yard is fenced off so only that unit can access it). In land tax calcs, they just take the total land value and divide it by 6. It is quite high value land. Is this right?

 

Should add the strata records show this land as having been given to this apartment many years ago, approved by the owners corp, although can't see what consideration was given the other apartment owners in return.

 

Normally the strata plan 'entitlements' would be split between each unit on a basis that reflects the floor area of each lot. Consideration should have been made to doing an adjustment to each unit entitlement when that land was "given" to that unit.

This unit entitlement would also impact on how strata costs are allocated.

 

Exclusive use or redefined the strata plan? The former is just a right to use the land, the latter is on their title & may have resulted in redistributing the lot entitlements but not necessarily.

 

As per other comments.

If the area has been granted to 1 unit as exclusive use it is still effectively still common property, so divided by 6 still.

If as @Scott No Mates said, if it hasn't been transferred on title then the entitlement (and land tax portion) hasn't changed. It's unlikely that the area was transferred as this would have been a substantial cost.

It's kinda like an allocated car space, it is usually common property with exclusive use allocated to a lot, this doesn't mean that it can't be allocated to a different unit if all owners agree !

You need to go back to the strata plan, then see what you can find out about when this deal was done and what agreement was made (if there's no record I wonder if that lot owner has an adverse possession claim?).

It is entirely possible that it was agreed to by the BC to reduce maintenance expenses.
If raised with the current owners as you have expressed above (expense to all for the benefit of 1) you could list the return and reinstatement of the area to the BC for the next AGM (this will get "the 1 offside, but may also give you the opportunity to proppse that they buy this area from the BC and incur all costs associated an quantity surveying).

 

I will have a look through the strata records. I note that this unit sold a few years back for about 65% more than other units sold. It is basically the same other than it has fenced off the back yard for itself.

RE strata - the floor area of the unit is the same as all others. It's strata contribution is the same. Its use of common property is the same.

 

Ok here it is; thoughts? Can this exclusive use be challenged? (no-one else even has access to a clothesline now so all require dryers inside their units) Should they be liable for more strata than an even split?

2010 - change of by-laws: "special by-law 1 - exclusive use area lot 3"

*The owners of lot 3 have exclusive use of area 'EU3A' in the plan lodged with the owners corp.
*The owners of lot 3 must...obtain all necessary approvals...including from the owners corp, council or other authority should such approvals be necessary.
*The owners corp may make, amend or repeal this by-law only:
i) with the written consent of the owners of lot 3; and
ii) in accordance with a special resolution

 

In the first instance chat with the strata manager, then a strata lawyer to confirm whether it complies with the standard for by-laws, was properly voted upon by a properly constituted meeting.

 

this is your only real option (based on the above)

Don't like your chances of lot 3 voluntarily giving up their use of "free" land !

Am still left to wonder what the benefit to the other lot owners was in voting to "give up" the land area (maybe lot 3 or other family members owned the other lots)

 

No. The "strata interest" is what is applied. Each strata has a fixed % that applies to each of the 6 interests. This includes your share of common areas etc and is how all strata fees are split. The % is complex and determined when the strata is registered and considers the variation in init sizes (they are never all identical) as well as yard etc. You may have a 1/6th interest in common areas only. If the strata has allowed someone use of land beyond the proper % then its a problem. OSR dont care. That is your issue as a owner. raise at Body Corporate meeting for correction ...its expensive. Usually if someone is given some common area the % lots will be reclaulated and that owner required to pay the costs to rework the interests.

OSR will apply that same %. They know those %'s

 

Thanks all. I will raise the issue of equal 1/6th shares with the strata manager and see.

 

Depends on the paperwork at the time.

In-laws bought a new unit in a retirement complex, negotiated to have “exclusive use” of extra land (not much) which was fenced at their expense to enlarge their outdoor area.

Years later other owners objected and wanted the fence removed. Hubby is a stickler for detail, and had insisted on a signed 99 year lease over the area. Later sold the unit (and the lease) and received a premium for the extra land.

 

I'm pretty sure unit entitlements cannot simply be recalculated by the body coporate.

Only a valuer can apportion the schedule of unit entitlments.