New South Wales Consolidated Acts

STRATA SCHEMES MANAGEMENT ACT 1996 - SECT 183

183 Order for reallocation of unit entitlements

(1) Tribunal may make order allocating unit entitlements The Tribunal may make an order allocating unit entitlements among the lots that are subject to a strata scheme in the manner specified in the order.

(2) Circumstances in which order may be made An order may be made only if the Tribunal considers that the allocation of unit entitlements among the lots:

(a) was unreasonable when the strata plan was registered or when a strata plan of subdivision was registered, or

(a1) was unreasonable when a revised schedule of unit entitlements was lodged at the conclusion of a development scheme, or

(b) became unreasonable because of a change in the permitted land use, being a change (for example, because of a rezoning) in the ways in which the whole or any part of the parcel could lawfully be used, whether with or without development consent.

(3) Matters to be taken into consideration In making a determination under this section, the Tribunal is to have regard to the respective values of the lots and (if a strata development contract is in force in relation to the strata scheme) to such other matters as the Tribunal considers relevant.

(4) Application to be accompanied by valuation An application for an order must be accompanied by a certificate specifying the valuation, at the relevant time of registration or immediately after the change in the permitted land use, of each of the lots to which the application relates.

(5) Qualifications of person making valuation The certificate must have been given by a registered valuer under the Valuers Act 2003 authorised under that Act to make such a valuation (a "qualified valuer").

(6) Ancillary orders that may be made if original valuation unsatisfactory The Tribunal may, if it makes an order allocating unit entitlements that were not allocated in accordance with a valuation of a qualified valuer and, in the opinion of the Tribunal, were allocated unreasonably by a developer, also order:

(a) the payment by the developer to the applicant for the order of the costs incurred by the applicant, including fees and expenses reasonably incurred in obtaining the valuation and the giving of evidence by a qualified valuer, and

(b) the payment by the developer to any or all of the following people of such amounts as may be assessed by the Tribunal to represent any overpayments (due to the unreasonable allocation) for which liability arose not earlier than 6 years before the date of the order:

the lessor of a leasehold strata scheme

the owners corporation

the owners of lots.

(7) Recovery of amounts awarded An amount ordered to be paid under this section may be recovered as a debt.

(8) Who may make application? An application for an order under this section may be made only by:

(a) an owner of a lot (whether or not a development lot) within the parcel, or

(b) the owners corporation, or

(c) the lessor of a leasehold strata scheme, or

(d) the local council, or by any other public authority or statutory body representing the Crown, being an authority or body that is empowered to impose a rate, tax or other charge by reference to a valuation of land.

(9) Lodgment of order The owners corporation must ensure that a copy of an order made by the Tribunal under this section is lodged in the Registrar-General’s office no more than 2 years after the order is made.

Note: Section 209 contains provisions with respect to the lodgment of an order made under this section.

(10) Nothing in this section prevents a person referred to in subsection (8) from lodging a copy of an order made under this section.