Unit entitlement valuations refer to the process of determining the value or share of a specific unit in a strata or community title scheme, often used in multi-unit properties like apartments or townhouses. Unit entitlement represents the proportion of ownership or responsibility each unit has in the common property and shared areas of the building or complex.
This valuation helps to allocate costs, rights, and responsibilities associated with the shared areas, including maintenance fees, insurance, and voting power in the body corporate or owners’ corporation.
This method calculates unit entitlement based on the floor area of the unit compared to the total floor area of the building, with larger units receiving a greater share.
Units are valued according to their market value, and unit entitlements are allocated based on each unit’s proportion of the overall value of the property.
A combination of the area and value-based methods can be used to account for both the size and market value of units, providing a more comprehensive valuation.
In some regions, there may be a prescribed formula for calculating unit entitlements to ensure uniformity across developments in the area.
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