Lot Liability and Entitlement
The lot entitlements and lot liabilities of lot owners are set out in the plan of subdivision.
‘Lot entitlement’ refers to your share of ownership of the common property and determines your voting rights. A lot for example, may have an entitlement of more than one vote.
‘Lot liability’ represents the share of owners corporation expenses that each lot owner is required to pay.
These entitlements and liabilities are determined by the developer at the time of subdivision.
Lot entitlements and lot liabilities can be changed by unanimous resolution.
Plan of Subdivision
A plan of subdivision depicts the break-up of a piece of land, showing parcels of land, commonly called ‘lots’, that can be sold separately.
The plan of subdivision is registered at Land Use Victoria and an owners corporation (formerly body corporate) is automatically created if the plan creates common property. It defines and governs the ownership of land, buildings and airspace, setting out private lots, common property and each lot owner’s voting entitlements and financial contributions.
Land Use Victoria registers and allocates numbers to the plan of subdivision and the owners corporation if one or more is created.