STP-10 Schedule of Unit Entitlements

Version 1 – 03/01/2018

The information provided in this guide is not intended to amount to legal advice. Professional assistance may be required to determine the most appropriate action to protect your legal rights. Please read our Terms of Use on the Strata Titles Policy and Procedure Guides web page. Landgate accepts no responsibility where parties print this guide and seek to rely on information that is out of date.

1 Unit Entitlement of Strata and Survey-Strata Schemes (formerly section 3.5 of the Practice Manual)

The unit entitlement of lots on strata schemes and survey-strata schemes has an important role in determining a proprietor’s equity in a scheme, a proprietor’s contribution toward levies and a proprietor’s voting power. Occasionally unit entitlement may need reviewing to ensure that proprietors and mortgagees’ interests are protected.

Unit entitlement valuations should not be confused with a property valuation. Rather it is a valuation in equity based on the relationship between the lots in the scheme.

1.1 Unit Entitlement is Not the same as a Property Valuation (formerly section 1.2.7 of the practice manual)

There is often confusion both in the industry and by lot proprietors on the valuation a licensed valuer undertakes when calculating unit entitlement. Basically, unit entitlement is a comparison of relative values between the lots in the scheme in proportion to the aggregate. The tolerances of these values can be 5% more or less. However, in some 1966 Act schemes, unit entitlements may have no relationship to relative values. The STA contains provisions which in certain circumstances allow unit entitlements to be varied from time to time.

2 Unit Entitlement Requirements (formerly section 3.6 of the Practice Manual)

Lots created in either a strata scheme or survey-strata scheme must be allocated a unit entitlement by a licensed valuer. Unit entitlement is very important as it represents the proprietor’s share in the whole of the parcel. Should the scheme be terminated, the resultant title in the case of a Strata Plan will be issued in the name of all the proprietors in undivided shares proportional to their unit entitlement. A proprietor whose unit entitlement is incorrect may therefore be seriously disadvantaged.

Unit entitlement is also used to determine the levies a proprietor must contribute to the management of the scheme and to indicate the proprietor’s share in the common property.

In strata schemes a proprietor may improve his lot with building additions and alterations which may result in a higher property valuation. Steps should be taken to amend the unit entitlement to reflect these changes.

Schemes registered between 1966 and June 1985 had unit entitlements allocated by the surveyor or developer, not by a licensed valuer. Consequently, they do not always reflect the correct proportion of the valuation of the lot to aggregate value of all of the lots.

The 1985 STA provides for a licensed valuer to allocate unit entitlement of each lot based on the value of the lot in proportion to the total value of all lots in the scheme. This proportion must not vary by more than 5% more or less from the value the lot bears to the aggregate value of all of the lots. Unit entitlement must be expressed in whole numbers. The valuer’s certificate is valid for a period of 2 years from the date of the valuer signing and dating the certificate. If the Strata Plan or Survey-Strata Plan is not registered within this time frame, then the valuer’s certificate lapses. The Landgate computer system automatically will indicate the status of the Strata/Survey-Strata Plan as “lapsed” and a new will be required before registration proceeds.

  • Note

A fee is required when lodging a replacement Form 3 for a Strata/Survey-Strata plan that has a status of “Lapsed”.

3 Valuer’s Certificate for a Strata Plan (formerly section 3.7 of the Practice Manual)

A licensed valuer must certify unit entitlement for a Strata Plan based on capital value within the meaning of the Valuation of Land Act 1978. This means valuing the buildings and improvement on the lots together with the land content. The appropriate unit entitlement is proportioned for each lot. The valuer’s certificate is valid until registration of the plan or until the certificate on the unregistered plan becomes “lapsed” (2 years form date of signing). Once the Strata Plan is registered the unit entitlement will remain in force until action is taken to vary it. A STGR Form 3 should be used. Alternatively, it is possible to incorporate the certificate on the Strata Plan.

When using a STGR Form 3, the description of the parcel and building should be the same as the land description on the title, followed by a description of the buildings. This should match the surveyor’s and local government’s certificates.

An anomaly occurs when the strata scheme contains a “vacant lot”, a lot that has no building constructed on it. The Strata Plan will contain a certificate from a licensed valuer that certifies that the unit entitlement is based on the value of the lots containing buildings compared to those not containing a building. This is satisfactory until buildings are constructed on the vacant lots. Unless a re-subdivision, merger or a change in unit entitlement is affected, the various unit entitlements will be out of proportion to the unit entitlements which should apply in the changed circumstances.

The following are typical examples of how to describe the Parcel and Building on the Form 3:

  • Lot 10 on Diagram 12345 Five single storey Brick and Colourbond Roof residential units.
  • Lot 20 on Deposited Plan 54321 Ten concrete panel and iron commercial units.
  • Lot 30 on Deposited Plan 50001 A mixed residential and commercial multi storey complex.
  • Lot 40 on Diagram 34567 A single storey brick and tile residential unit and one vacant lot.
  • Note

The address of the parcel may or may not be shown as part of the description

4 Valuer’s Certificate for a Survey-Strata Plan (formerly section 3.8 of the Practice Manual)

A licensed valuer’s certificate is valid for 2 years or until registration of the Survey-Strata Plan. Once the Survey-Strata Plan is registered the unit entitlement will remain until some further action is taken to vary it. The valuer is required to certify that unit entitlement is derived from site value within the meaning of the Valuation of Land Act 1978. This means:

  1. value of the buildings and improvements on the lots is not taken into consideration when calculating unit entitlement, and
  2. common property lots are to be numbered on the schedule of unit entitlement but will not be separately valued and will not have any unit entitlement allocated to them, and
  3. a STGR Form 3 can be used or alternatively the Form 3 can be incorporated into the body of the sketch plan.

When using a STGR Form 3 the description of the parcel should be the same as the land description on the title followed by a description of the amount and type of lots within the scheme. For example:

“Lot 20 on Deposited Plan 45678 comprising of five Survey-Strata Lots and one Common Property Lot.”

Note: The address of the parcel may or may not be shown as part of the description

5 Valuer’s Checklist (formerly section 3.9 of the Practice Manual)

Valuer’s Certificate Form 3

  • Delete “strata” or “survey-strata” according to the type where it appears on the form.
  • Lot numbers and unit entitlement filled in.
  • Aggregate filled in.
  • Description of land parcel.
  • Description of buildings for a Strata Plan only.
  • Sum of unit entitlement to agree with aggregate.
  • Valuer’s name.
  • Form signed and dated.

6 Re-allocation of Unit Entitlement by State Administrative Tribunal (formerly section 14.9 of the Practice Manual)

An owner of the strata company may seek re-allocation of unit entitlement by the SAT (formerly adjudicated by the “Land Valuation Tribunal”; see section 16 of the STA). An eForm application can be made online at www.sat.justice.wa.gov.au (see STP-07 The Role of Government Agencies section 5). This application is to be accompanied by a certificate (Form 12 of the STGR) from the strata company stating it has by special resolution authorised the application.

A certificate given by a licensed valuer certifying the value of a lot identified in the certificate has varied by more than 5% in relation to another lot identified in the certificate is also required. A notice of the application shall be served on persons who did not vote or voted against the resolution authorising the application.

The SAT may also direct notice be served on persons having an interest in the proceedings.

The SAT may make an order varying the unit entitlement set out on a Strata/Survey-Strata Plan.

If a special resolution cannot be obtained, a proprietor of a lot may make an application to the State Administrative Tribunal (SAT) under section 98 of the STA. The SAT may exercise the functions of the strata company in appropriate circumstances.

Notice of an application to the SAT must be served in accordance with section 16 (3) of the STA.

Registration is achieved by producing a certified copy of the order of the SAT with an application made by the strata company or by the lot proprietor on a TLA Form A5.

If the strata titles were created and registered under the STA 1966 and contain the unit entitlement specified in the land description of the title, then the duplicate certificates of title for all the lots are to be produced and new certificates issued with the modern wording.

7 Change of Unit Entitlement by Order of State Administrative Tribunal (formerly section 14.10 of the Practice Manual)

An Application can be made to the SAT for an order to vary unit entitlement. This application can be made by:

  • a proprietor
  • registered mortgagee

or

  • the strata company.

Under section 103H of the STA the SAT (formerly adjudicated by the Strata Titles Referee) may, in appropriate circumstances, grant an order varying the unit entitlement. This order and amendment takes effect when it is registered on the Strata or Survey-Strata Plan.

This page was last updated on: 06 Sep 2019