Living in a unit or apartment means you often get access to many things you would not have if you lived in a house. Think of the lifts you ride to get to your apartment, maybe the gym you work out in and even the swimming pool! All these things must be paid for by the owners and are known as strata levies.
The levy you pay per quarter is usually determined prior to the registration of the strata plan by the size or value of your unit and any car space or storage space (or any other utility lot which is on your title). Your unit entitlement within the overall strata scheme is therefore used to work out the levies owed to the owners corporation, representing your share of the maintenance and repairs to the common property and access to and enjoyment of the facilities located on the common property. Your unit entitlement is also used to work out your voting rights within the scheme. In hotly contested AGMs this may become important.
The lawyers at ClickLaw suggest:
- Before buying into a strata scheme and as part of the conveyancing process, have a strata inspection report prepared by a suitably qualified professional;
- Review the unit entitlement associated with the proposed property for purchase and analyse it as a percentage of the total strata scheme;
- Appreciate that your unit entitlement, amongst other things, will determine your levies and voting rights. In cases where a special levy is also raised, for example to cover an unexpected paint job to the outside of the building, your unit entitlement is again used to work out your liability.
Solicitor Director – ClickLaw Australia