LOT ENTITLEMENT ASSESSMENT
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Quality Building Management have a broad range of experience in all aspects of reporting for Strata Title and Commercial markets. We specialise in Lot Entitlement Assessment Reports and believe through our in depth knowledge of the industry, we can advise our clients on the correct actions which need to be taken to remedy any queries that might exist through the commissioning of QBM to carry out a Lot Entitlement Assessment Report.
The Commercial and Consumer Tribunal and special adjudicators, generally require clear evidence to justify a change from the current lot entitlements. Unequal Lot Assessment reports are prepared by experts such as QBM, our reports begin with the production of a detailed Sinking Fund Forecast, based on the upcoming expenditure for the next 15 years and detailed analysis of Minutes of Meetings along with past and present administrative expenditure.
Background
A lot entitlement for a community scheme means the number allocated to the lot in the contribution schedule or interest schedule in the community management scheme.
The contribution schedule for which development approval is given, after the commencement of this subsection, the lot entitlement must be equal, except to the extent to which it is just and equitable in the circumstances for them not to be equal. In deciding the contribution schedule lot entitlements for the scheme, regard should be made for the following:
- How the scheme is structured
- The nature, features and characteristics of the lots included in the scheme
- The purpose for which the lots are used
Adjustment of Lot Entitlement Schedules
The owner of a lot in a community title scheme may apply under chapter 6 of the Body Corporate Management Act 1997, for an order of a specialist adjudicator for the adjustment of a lot entitlement schedule or under the CCT Act, for an order of the CCT for the adjustment of lot entitlement schedule.
If the owner applies under chapter 6 for a special adjudicator, each party to the application is responsible for the party’s own cost for the application.
For the Contribution Schedule, the respective lot entitlement should be equal, except to the extent to which it is just and equitable in the circumstances for them not to be equal.
Whereas the Interest Schedule for the respective lot entitlement, should reflect the current market value of the property, except to the extent to which it is just and equitable in the circumstances for the individual lot entitlement, to reflect other than the respective market values of the lots.
Upon approval of the change, the revised lot entitlement takes effect in the recording of a new Community Management Scheme.
