Unit Entitlement

A unit entitlement valuation is a formal assessment of the relative market value of each lot within a strata scheme, used to determine how ownership, voting rights, and financial obligations are apportioned among lot owners. In New South Wales, this process is governed by the Strata Schemes Development Act 2015 and the Strata Schemes Development Regulation 2016, which require unit entitlements to be based on market value, not arbitrary measures like size or developer discretion.

Unit entitlement represents a lot’s proportional share in the strata scheme. It affects:

Strata levies: How much each owner pays toward maintenance and sinking funds

Voting rights: Influence in owners corporation decisions

Ownership interest: Share in common property and compensation entitlements

How Does the Valuation Work?

A Certified Practising Valuer (CPV) assesses the market value of each lot as at the date of the strata plan’s registration or amendment. The process includes:

Inspection & Analysis

• Reviews each lot’s size, layout, aspect, condition, and improvements
• Considers location within the building (e.g. views, access, orientation)

Market Comparison

• Uses recent sales of similar properties to determine fair market value
• Adjusts for differences in features, floor level, and amenities

Apportionment

• Each lot’s value is compared to the total value of all lots
• Unit entitlements are assigned proportionally (e.g. a unit worth 20% of the total value gets 20% of the total unit entitlements)

Certification

• The valuer provides a Unit Entitlement Certificate, which is lodged with NSW Land Registry Services as part of the strata plan

When Is It Required?

• Registration of a new strata plan
• Subdivision or consolidation of lots
• Reallocation due to unfair entitlements (can be ordered by NCAT)
• Disputes over levies or voting rights

Why Estate?

We are highly experienced in undertaking unit entitlement valuations for new and existing strata schemes, delivering precise, market-based assessments that comply with the Strata Schemes Development Act 2015 (NSW) and the Strata Schemes Development Regulation 2016. Our valuations are conducted by qualified professionals in accordance with Schedule 2 of the Act, ensuring each lot’s unit entitlement accurately reflects its proportional market value. Whether for initial registration, subdivision, consolidation, or reallocation applications, we provide certified Valuer’s Certificates and clear supporting documentation tailored to meet NSW Land Registry Services requirements and uphold fairness in levy contributions, voting rights, and ownership interests.