Unit entitlement is the measure of each proprietor’s undivided share in the common property (real estate or equipment) owned by the strata corporation. In a strata corporation (apartment/office/shop) each proprietor owns his strata lot(s) as well as an undivided portion of any part of the land that is not contained in another proprietor’s title.

No proprietor can separate or exclude other proprietors from participating in the use and enjoyment of common property by staking out of a share or piece of the parcel exclusively for themselves, because their ‘share is inseparable from the shares owned by the other proprietors.

Usually, larger units consisting of 2 or 3- bedrooms are assigned larger units of entitlement than smaller 1-bedroom or studio units, but the square footage on the unit is not the only factor that determines the entitlement assigned. Property professionals known as Commissioned Land Surveyors are responsible for the preparation of strata plans.

Strata plans are public documents and once you know your strata plan number, you may obtain a copy of any strata plan from the National Land Agency for a nominal fee. The schedule of strata lots set out at the beginning of the strata plan identifies each apartment/shop/office in the complex, their corresponding unit entitlements and title references.

HOW DOES MY UNIT ENTITLEMENT AFFECT MY MAINTENANCE FEES?

Unit entitlement is the only legal method for apportioning the maintenance fees and all other expenses (assessments) due from a proprietor in respect of the common property. Proprietors are strongly encouraged to file a complaint with the Commission where their strata corporation uses an alternative method to derive the contributions payable in respect of their unit.

Element 1: The Formula

Maintenance Fee Formula = (Individual Entitlement x Approved Budget) / Aggregate Entitlement

Element 2: The Unit Entitlement listed on your strata plan

Element 3: The Approved Budget

This corporation adopted the following annual budget for the financial year January – December 2020 at its last general meeting December 20, 2019.

Annual Budget

Electricity                –   $30,000

Water                      –   $25,000

Cleaning Supplies   –    $15,000

Security                   –   $30,000

Total Budget               $100,000

• How to calculate the maintenance fees to be paid by the proprietor of strata lot 2, who has 9/20^th units of entitlement ?
  • The owner of strata lot 2 pays:  9/20 x $100,000   = $45,000/yr,

• How to calculate the maintenance fees to be paid by the proprietor of strata lot 4, who has 1/20^th units of entitlement?
  • The owner of strata lot 4 pays:  1/20 x $100,000   = $5,000/yr,

DOES THE PROPRIETOR OF STRATA LOT 2 HAVE MORE ‘RIGHTS’/ADVANTAGES THAN THE PROPRIETOR OF STRATA LOT 4?

• On a vote by a show of hands at a general meeting of the corporation, each of these proprietors (once paid-up at the time of the meeting) has only one vote.

• If there are only 5 parking spaces in the complex, each proprietor is entitled to only 1 parking space.

• If there is a swimming pool (or any other amenity on the complex), the proprietor of strata lot 4 is entitled to use and enjoy the amenity as much as the proprietor of strata lot 2.

HOWEVER

If at a general meeting of the corporation, a proprietor calls for voting by poll requiring the votes are to be computed by unit entitlement instead of a show of hands; then the proprietor of apartment 2 will have a greater share of the votes even though the own 1 unit each. (The voting rights of apartment 2 being subject to the provisions of rounding down as set out at 33A of the statutory bylaws)