Lot Entitlements Explained: What They Are and Why They Matter

What Are Lot Entitlements?

Lot entitlements are numbers assigned to each lot when a body corporate scheme is registered. They determine two of the most important aspects of owning a lot in a strata scheme:

How much of the levies you pay (contribution entitlements)
How many votes you have at general meetings (interest entitlements)

In many schemes these are the same number. In some schemes — particularly older ones or those with a mix of lot types — they differ.

How Entitlements Are Set

Lot entitlements are set by the developer when the scheme is first registered and reflect the relative value or size of each lot at that time. They are recorded in the community management statement.

A lot with a higher entitlement:

Pays a larger share of the body corporate levies
Has more votes at general meetings

For example, in a scheme with 10 lots each having equal entitlements of 10, each owner pays 10/100 = 10% of the levies and has 10 of 100 votes. A lot with an entitlement of 15 would pay 15% and have 15 votes.

Why They Matter When Buying

Before you buy, check the entitlement of the lot you are purchasing:

Levy cost: A higher entitlement means a higher levy bill. Two lots in the same scheme with different entitlements can have very different levy amounts — sometimes by a factor of two or more in schemes with a wide range of lot types.

Voting power: A lot with higher interest entitlements has more influence at general meetings. In schemes where large lots hold a majority of the interest entitlements, smaller lot owners can be consistently outvoted.

Can Entitlements Be Changed?

Changing lot entitlements is very difficult in practice. It requires a resolution without dissent — meaning every single lot owner in the scheme must vote in favour. No votes against, and no abstentions that count as against.

In most schemes, getting every owner to agree to change the entitlements is practically impossible. This means the entitlements you buy into are almost certainly the entitlements you will live with.

Two Types: Contribution and Interest

Contribution entitlements determine levy amounts. They are supposed to reflect the relative costs each lot imposes on the common property — so a larger lot, or one with more external-facing structure, might have a higher contribution entitlement.

Interest entitlements determine voting rights and the individual owner's share of the scheme's assets if it were wound up. They are supposed to reflect the relative market value of each lot at the time of registration.

In some schemes these are identical. In others, a large ground-floor lot might have a high contribution entitlement (pays more levies) but a lower interest entitlement (fewer votes) — or vice versa.

Finding the Entitlements

Lot entitlements are recorded in the community management statement, which is a public document available through the Titles Registry. Your solicitor will obtain this as part of pre-purchase due diligence. A body corporate search will also show the entitlement schedule for all lots in the scheme.

This article is general information only and does not constitute legal advice. For advice about lot entitlements in a specific scheme, consult a strata lawyer or conveyancer.