Strata of a Unit

Hoping to get some advise as I wasn't able to find information anywhere. TIA.

We have recently received our latest strata premium invoice for our unit, previous years the apportionment has always been split according to the owners corporate search report, but this year the invoice is an equal split between 3 units. With our unit being the smallest amongst the three, I have gotten into contact with the strata company and asked for this to be fixed but been advised that premium for units are always an equal split. Would anyone be able to confirm whether this is true, please? Only because for the last 4 years that we owned this place that we have always paid a lesser amount comparing to the other two units. Also, I would believe that if all three units were to burn down, touch wood, together that the other two units would be covered to a higher amount than us.

Appreciate any information.

 

Generally levies are determined on a unit entitlement basis - not usually done equally unless in smaller schemes of two or three. Unit entitlements are generally shown on the Common Property Certificate of Title and sometimes on the strata plan itself.

 

The strata allocation shouldnt change after survey and determination. The apportionmnet is based on area incl of common area and also value. eg One balcony faces a beach. The other two face a dodgy alley or main road. Sometimes this yields unusual outcomes where a larger unit may be occupied by one person who lives infrequently where three people may live in the others. Thats how it is and if the sole occupant sells to a family of four then it doesnt change. If work is performed to common property of some units then this cost must be borne by those units and not all units. Apportioning on the basis of entitlement units may different from units of liability. A example is the lift expenses. A GF unit may have no use for a lift. All other units may share the cost. Entitlement and liability can both be the same.

The plan of subdiv (s32 cert) should explain how costs are apportioned. The strata manager has nothing to do with apportioning and the OC must ensure it is correct. The SM is only delegated to act for the OC.

If the place burns down nobody gets anything. The insurance is to rebuild the loss. You get back what you had in theory. You cant call for cash in place of the rebuild as a alternative.

 

Hi Kit Kat I am a conveyancer and I will try and help you out, Firstly I note you are located in Melbourne however you are using terminology applicable in NSW. Can you clarify is your Unit in Melbourne or NSW?