Unit entitlement is the relative proportion of each proprietor’s share of ownership in the whole of the strata or survey strata scheme. The unit entitlement determines three important rights and obligations of proprietors:
a) Voting rights of the proprietor
b) The proportion of the undivided share of the common property
c) And the proportion of the levy of contributions
Unit entitlement is determined by capital value in a strata scheme and by site value in a survey strata scheme. The units of entitlement are established by a licensed valuer whose valuation certificate is registered at Landgate with the strata plan.
As an owner you are obliged to contribute to levies, based on units of entitlement, for an administrative fund to adequately fund expenses such as insurance and maintenance of the common property.
Additionally, you may be required to pay another levy, based on units of entitlement, if the owners of the strata company decide to establish a reserve fund. The purpose of the reserve fund is to accumulate funds for future significant expenses such as a lift or roof replacement