Unit Entitlements is the proportion of a total strata scheme assigned to a single unit. If you own inside strata-titled creation, a certain number is assigned to each lot depending on the value of that lot, which defines the amount of strata levies payable and the voting rights involved.
The laws covering unit entitlement valuations have changed to ensure that all unit entitlements are allocated at the point of valuation based on each lot’s market value, rather than traditionally used methods such as scale, which did not often take into account such things as location, views or aspect.
Therefore, when the developer or surveyor is designing themselves, a licensed valuer is required to allocate unit entitlements, as opposed to previously. This reform ensures that the unit entitlements and the related levies between lots within a development are relative and equal.
What Are the Permits Needed For Unit Entitlement Valuations?
Requisite Governmental and Regulatory Approvals
Knowing what can and cannot be legally built on the site is one of the most important factors when buying or selling land. Fully entitled land is the type of land that has obtained all of the requisite governmental and regulatory approvals for specific use on a particular piece of property.
Current Zoning and Future Land Use of a Property
Understanding the current zoning and future land use of a property is critical for developers and land brokers. This sets the basis for what properties can and cannot be legally constructed. These rules typically include manufacturing, residential, multi-family, etc. allowed buildings, minimum and maximum size criteria for square footage or units, parking requirements, and the like.
Nevertheless, even because of the zoning and potential land use that allow for some development, this does not mean that the form of construction is feasible and does not guarantee that the requisite unit entitlement valuations are guaranteed. The path taken by developers is known as the entitlement path to get to the actual government approvals to build their development.
The unit entitlement valuations process can be prolonged and tedious, depending on the governmental jurisdictions where a property is located. The construction must comply with the municipality’s zoning and planned land use. Still, it must also comply with issues like stormwater runoff standards, connections to off-site services, like power, water, wastewater, gas, and cable lines.
Therefore, the developer would almost certainly have to seek approval from the Transportation Department regarding admission and developmental progress. Large developments on significant roads can often trigger additional infrastructure such as turning lanes, traffic lights, etc. that can add hundreds of thousands of dollars to a project. Approvals from the department of environmental protection and other arms will also be required in many cases to protect wetlands or conservation land.
Those are only a few examples of the multiple permits that developers need to obtain to eventually for unit entitlement valuations to take place for a property to be built. Navigating this process can be time-consuming and costly, so land brokers and developers with a solid knowledge of the process have a considerable advantage over those looking to purchase land.