Q: There are 47 lots in the Deposited Plan. There are 3 Strata Plans within the Deposited Plan. Each Strata Plan has 2 lots (One house with 3 beds and a garage + One bed unit with a garage. The main house garage is below the unit). The Deposited Plan shares a common driveway and has a community association established. The community association fees comes to around $600/year for an average 3 bed house within the Community. However, each Strata Plan is charged $1900/year of community fees and on top of around $6000/year in Strata management and Insurance. The strata manager says we are being charged higher because of the unit entitlments. My house within a strata plan is no larger than the other houses in the community and I pay around $6200/year compared to $600/year that the other houses have to pay. This does not look fair at all. Are the Strata Managers doing this correctly or is there other fair way of managing such scenario?
My strata manager says we are being charged higher community association fees because of unit entitlements. Is this correct? – Binit, NSW
A:
Unit entitlements, which determine the distribution of levies within the strata plan, are established on the plan’s registration. They are typically based on the market value (size, position, height/views, features etc.)
The cost included in the strata budget for Community Association share is determined by the management statement on inception, typically created by the developer.
We recommend you review the Land Registry Services website for information on the potential redistribution of unit entitlement. Alternatively, you may wish to consult with a strata solicitor to provide opinion and clarification on levy comparison. Once the solicitor has all the relevant information, they should be able to advise if you have a case for redistribution of levies.
Given the separate entities you describe, a solicitor could guide you on the best course of action.
Unfortunately, providing advice on your options is difficult without thoroughly reviewing the property and documentation.
