Could Unit Entitlement Affect Your Potential Condo Purchase?

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When it comes to property purchase, this may not be your first time at the rodeo. You may have bought a few homes during the course of your life and as your family grew in size, but now you're thinking about buying a condo instead. It goes without saying that you need to be careful whenever you buy property of any kind, but in this situation, you need to gather even more information and should definitely commission a pre-purchase strata report. What is this, and how crucial could it be as part of your buying decision?

Caveat Emptor

You may have found what you believe to be the perfect home for the next phase of your life. It is one unit in a relatively small development, but its location is perfect and only minutes from the beach. You may have had problems with your last property but think that this will be a lot easier – after all, how much of a challenge could it be, given the simple nature of the development?


Of course, there are several different owners involved, and each one of them will need to have a say in how the building and the common areas are maintained. Yet did you know that the concept of 'unit entitlement' may come into the frame here, even if this development is quite small? Perhaps a single owner has more than one of the units within this building, and if so, they may be classified as having a larger share of unit entitlement. This is something that you should be aware of, as it may affect your voting rights when significant topics arise.

What Does History Foretell?

Certainly, you may not be able to predict the future and may not know what type of issue could arise, should this 'majority' owner be unreasonable. However, you can find out what happened in the past if you commission a pre-purchase strata report as part of your appraisal, and you can make your decisions from there. This type of report has a great deal of information about the make-up of the development, the management company in charge, any disputes or grievances in the past and – potentially – whether any obstacles were put forward by the aforementioned owner.

Get the Report

You must always exercise caution whenever any third party can have a say in a development linked to your potential investment. Make sure that you get your pre-purchase strata report before you make any decisions.