What is the difference between the Interest Entitlement and the Contribution Entitlement in the new Unit Titles Schemes Act?
A. The Interest Entitlements are set by a valuer and based on valuations of all the units at the time of the issue of the unit plans. These may or may not be the same as the Contribution Entitlements which determine what share of a budget each unit is responsible for contributing. The key matters, in a developer working out what should be the Contribution Entitlements requirement, are set out in section 39(6) (copied below). The section operates so that the contribution levy does not have to the same share of the total for all of the units if the factors referred to in subsection (6) apply. Thus, if the scheme is such that the running costs of operating the part of it in which the unit is located are higher for that part than the other parts then there is justification for the Contribution Entitlements levy being different, For example, one part might have a lift (which costs money to operate) whilst other part might not have a lift. A cavalier developer needs also to take account of s
