When development of a community, precinct or neighbourhood scheme is complete the initial schedule of unit entitlements lodged with the original plan may not adequately reflect the value of the lots in the scheme. The development originally planned may have been varied during construction. Some lots may have been converted or severed, and other lots may have been left undeveloped.
An adjustment of unit entitlements may be required at the completion of the scheme to ensure equity in distribution of each owner's contribution. Instead of putting an association to the expense of obtaining a further valuation to support an updated schedule of unit entitlements, it is possible for a revised schedule to be lodged based on the Valuer General's table of values.
NSW LRS notifies the Valuer General in accordance with section 109 of the Community Land Development Act 2021, following the registration of:
- a severance of a community or precinct development lot
- a community plan of subdivision or a precinct plan of subdivision
- a neighbourhood plan of subdivision or
- an acquisition plan.
The Valuer General will then make an assessment of land values for rating purposes and can provide an association with a table showing the values of the new lots, as if they were valued at the same base date - see section 76(3) Valuation of Land Act 1916.
Situations for revised unit entitlements:
A revised schedule of unit entitlements may be lodged by:
- a scheme if it is satisfied that the scheme has been completed
- a precinct scheme, even if the community scheme of which it is a part is not completed, or
- a neighbourhood scheme that is part of a community scheme or precinct scheme, even if the community scheme or precinct scheme is not completed.
- See clause 14 Schedule 3 Community Land Development Act 2021
NOTE: Lodgment of a revised schedule of unit entitlement for a community scheme entails the lodgment of a revised schedule for each precinct and neighbourhood scheme within the community.
NOTE: There is no provision for a subsidiary scheme to lodge a revised schedule on its own behalf.
A revised schedule of unit entitlements must:
- be lodged annexed to a Request form (11R)
- be lodged as a replacement Administration Sheet
- be prepared on Plan form 6D
- be clearly identified as a revised schedule
- show as a whole number the unit entitlement of each lot
- show as a whole number the total of unit entitlements
- contain an update sheet note, in the notes column, to the effect of Approved form 8
- be based on a table of values provided by the Valuer General - see schedule 3 clause 14(3)(d) Community Land Development Act 2021
- be accompanied by Approved form 22 indicating that the revised schedule has been approved by a special resolution of the association.
Orders Affecting Unit Entitlements
The Civil and Administrative Tribunal may, on application, make an order replacing the unit entitlements for a community, precinct or neighbourhood scheme. Section 194 Community Land Management Act 2021
, sets out that the Tribunal’s decision is based on revaluations made by a qualified valuer and if the Tribunal considers that:
- the initial schedule is based on unreasonable valuations or
- the schedule should be reviewed or replaced.
Such an application may be made by:
- an association or a strata corporation within the scheme
- the owner of a development lot, a neighbourhood lot or a strata lot within the scheme.
A sealed copy of the decision of the Tribunal (which sets out the replacement unit entitlements) must be attached to a Request form 11R.
All NSW legislation can be accessed at www.legislation.nsw.gov.au/