In a new NSW strata scheme, on what basis must each lot's unit entitlement be set?
Correct Answer
C) Each lot's market value, as apportioned by a qualified valuer.
Under Schedule 2 of the Strata Schemes Development Act 2015 (NSW), the schedule of unit entitlement for a new scheme must be apportioned on a market value basis, and a qualified valuer must certify it. Unit entitlement then sets each owner's share of levies, their vote on a poll and their share of the common property. Other states use different bases, such as Queensland's equality or relativity contribution schedules.
Why This Is the Correct Answer
Since the 2015 reforms, NSW requires unit entitlements in a new scheme to be apportioned on market value at the valuation day and certified by a qualified valuer, so developers can no longer set them however they like.
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