• Strata unit entitlement valuations make sure everyone pays their fair share of levies.

• The Strata Schemes Management Act 2015 requires a qualified valuer’s certificate and a properly prepared schedule of unit entitlement to keep things fair and compliant.

• Outdated or incomplete data can skew valuations, which is why professional valuers like IPV use current market data to keep unit entitlements accurate.

Have you ever looked at your strata fees and wondered, “Am I really paying the right amount for my unit?” Strata unit entitlement valuations play a big role in deciding how much you pay in strata fees. And if the numbers aren’t accurate, you could end up paying more than your fair share.

A proper valuation for unit entitlement makes sure strata levies are allocated fairly, based on the actual size, position, and value of each unit. But when mistakes creep in, the impact can be costly, sometimes even sparking disputes between owners.

In fact, the NSW Civil and Administrative Tribunal (NCAT) received over 1,600 strata-related disputes in just one year (2022-2023). It shows just how common disagreements in strata living can be, and why getting your strata unit entitlement valuation right from the start is crucial.

The good news is, most issues come down to a handful of common errors. In this article, we’ll walk through the biggest mistakes people make with strata unit entitlement valuations, and more importantly, how you can avoid them.

What is a Unit Entitlement Valuation?

A unit entitlement valuation is a fair and unbiased way of working out the value of each lot in a strata scheme which is usually done when the building is built or when it is brought under Strata Title. Think of it as deciding how big your slice of the strata pie is, because that slice determines not just how much you’ll pay in levies, but also the rights and responsibilities you hold compared to other owners.

In New South Wales, this process is backed by the Strata Schemes Management Act 2015, which sets the rules for managing strata schemes and resolving disputes. The Act covers everything from dealing with lots and common property to how and when adjustments, renewals, or even terminations can happen.

That’s why professional unit entitlement valuations are so important. A qualified valuer doesn’t just look at the strata’s market value, they also assess ownership, responsibilities, and rights across the scheme to make sure there’s fair distribution.

The result? Valuations that are accurate and compliant. So levies stay fair, disputes are less likely to occur, and all owners know exactly where they stand.

4 Common Mistakes in Unit Entitlement Valuations (and Why They Matter)

1. Using the wrong or outdated data

One of the most common mistakes in unit entitlement valuations is relying on old or incomplete market data. Using outdated sales figures or a small pool of comparable sales can make the valuation way off.

In fact, a study on Australian valuation practices found that 68% of valuers felt that limited availability of relevant data restricted their analysis, not to mention concerns about accuracy and time constraints (Skitmore and Armitage, 2015).

The problem? If your valuation is based on outdated or incomplete figures, your unit entitlement won’t reflect true market conditions. That means you could end up paying more strata levies than you should, while others pay less. Over time, you’ll get not just the feeling of inequity, but it can also become a very costly issue to the entire scheme.

2. Overlooking property specific factors

Another common pitfall in the valuation for unit entitlement is treating every lot as if it’s the same. In reality, no two strata units are identical, and ignoring the property’s details, especially its floor size, can seriously skew the results.

3. Relying on DIY or non-expert assessments

Trying to save money by handling valuations internally or using non-experts is a shortcut that often backfires. Before the 2015 reforms, unit entitlement was commonly based on the developer’s own estimate. This practice however led to unfair or inaccurate allocations (NSW Government, 2021).

Today, that approach simply doesn’t cut it. In NSW, professional unit entitlement valuations aren’t just best practice, they’re required. The Strata Schemes Development Act makes it clear: a qualified valuer’s certificate and a properly prepared schedule of unit entitlement are essential.

Why? Because a valuation for unit entitlement is very different from just estimating a property’s market value. It demands specialist knowledge, accredited methods, and compliance with strict legal standards. Skip the expertise, and even small errors can snowball into serious financial consequences, or worse, legal headaches for everyone in the strata scheme.

4. Ignoring legislative and building requirements

In NSW, you must determine unit entitlements fairly, reflecting each lot’s value at the time of registration. When you don’t, disputes are almost predictable.

But it doesn’t stop there. Developers and owners’ corporations also need to ensure compliance with the Design and Building Practitioners Act and the Building Code of Australia, which set strict standards for how buildings are designed and constructed (NSW Legislation, 2024).

Overlooking these obligations can lead to huge financial consequences. Just look at Pyrmont’s Harbour Mill Apartments, where unit owners were hit with strata levies of up to $220,000 due to compliance failures (Chung, 2025).

The reality is, incorrect entitlements or non-compliance don’t just create administrative headaches, they can also trigger expensive tribunal proceedings, or even court cases. And the longer these issues drag on, the more complex and costly they become to resolve.

How to Avoid These Mistakes in Unit Entitlement Valuations

The good news? Each of these mistakes is preventable with the right approach:

1. Partner with an accredited valuer

Choose a valuer that’s registered with the Australian Property Institute (API) or Australian Valuers Institute (AVI). They apply correct methodologies and comply with legislative requirements.

Partnering with experienced valuers like Independent Property Valuations (IPV), who have a strong track record in strata and unit entitlement valuations gives you peace of mind that the numbers are accurate, compliant, and backed by solid evidence.

2. Ask for current and comprehensive market data

Valuations should be based on recent, comparable sales, and not outdated benchmarks. Always ask your valuer how they sourced their data.

3. Consider all property differences

Orientation, floor space, parking, balconies, and views all influence a strata’s value. A professional valuer should document these variables clearly and transparently. At IPV, we carefully review every detail to ensure unit entitlement valuations are fair and defensible.

4. Ensure compliance with strata laws and building requirements

In NSW, unit entitlements must align with the Strata Schemes Management Act 2015. Deviations from the requirements outlined in The Act risk tribunal disputes or costly legal trials. Our professional and qualified valuers are well-versed in strata regulations, making sure your unit entitlements are set correctly from the start.

Final Thoughts on Unit Entitlement Valuations

Unit entitlement valuations aren’t just about keeping the NSW Government happy. They’re about making sure everyone in your strata community pays their fair share. And while mistakes happen, the right valuer can make sure they don’t.

At IPV, we’ve built our reputation on delivering valuations that are accurate, compliant, and backed by decades of experience. Our accredited team of valuers works with owners, developers, and legal professionals across NSW to make sure your valuations stand up to scrutiny.

Let’s keep your strata scheme fair and compliant.

Get in touch with our expert valuers today and gain peace of mind knowing your unit entitlements are set right from the start with accurate valuations.