The share value of a property is a figure that represents the proportionate share entitlement assigned to each strata unit in the same development. The purpose of the share value is to determine the amount of shares each owner has in relation to the other owners in the development.
Example: If the share value of an apartment unit in a condominium is represented by the figure 5/350, then 350 represents the share value of all the units in the condominium and 5 is the share value allotted to the unit.
What does share value represent?
First, the share value determines the amount of contributions for maintenance that an owner has to pay to the management corporation of the estate for maintaining the common areas in the development. Second, the share value of a strata lot determines the voting right of a unit owner. The higher the share value an owner has, the more voting rights he or she has. Third, the share value determines the share that an owner has in the common property, which is jointly owned by all the owners in a development.
Who determines share value?
To determine the share value of each unit, the developer submits a proposal to the Commissioner of Buildings (COB) for acceptance. This proposal shows the share value that has been allocated by the developer to all the units in the development. A developer engages a professional surveyor to carry out the task of allocating the share value. The share value of each unit must be accepted by COB before sale of property.
How the share value is determined?
The COB has a set of guidelines to assist developers to determine share value allotment. The general principle in allocating share value is based on perceived usage of common facilities. A unit that uses more of the common facilities is allotted with a higher share value and consequently contributes a higher maintenance levy. Share value in residential properties In the case of residential properties, occupancy is taken into account because it reflects usage directly. Floor area groupings are used to take into account the different number of occupants, who are likely to stay in a unit. It is assumed that units within a larger floor area grouping have more occupants and thus incur a higher proportion of maintenance costs of the common property. The floor area groupings are shown in the table below.
Floor area and Share value
50 m2 and below 5
51 m2 to 100 m2 6
101 m2 to 150 m2 7
151 m2 to 200 m2 8
*The share value increases by one for every 50 m2 of floor area.
Share value in mixed developments
A mixed development can comprise residential units, offices and shops in one development. Some examples are Roxy Square, The Plaza, Sunshine Plaza and Burlington Square. In such developments, different weight factors are used to account for the unequal usage of common facilities among the different user groups. Shops, which incur a higher percentage of maintenance expenses because they use more air-conditioning and other facilities like escalators, are allotted a proportionately larger share value. Shop owners therefore pay a higher levy than owners of offices or residential units.
Share value in a staged development
A stage development is one that is built in a number of stages instead of simultaneously. The details must be disclosed in the staged development contract. If you have purchased a unit that is not part of a staged development contract, the developer cannot change the share value allotted to your unit unless you give your consent. However, if your unit is part of a staged development, the share value allotted to your unit may be varied, within prescribed limits, upon the completion of each stage of the development. This is spelt out in the staged development contract between your developer and yourself. The staged development contract should also spell out any provisions in the event that the prescribed limits are exceeded. A developer who intends to carry out a staged development has to obtain approval from the COB for the share value for all units (for current as well as future stages) before any unit in the first stage can be sold. The share value approved for subsequent stages is provisional. When each subsequent stage of the development has been finalised, the developer must file the share values of each stage for approval before he can sell the units.
Can the share value of a strata lot be changed?
The share value of a strata lot cannot be changed once the strata title application is registered. However, the Registrar of Titles may allow changes to be made to the share value in the following cases.
? Where there is an error in the entry
? Where the value has been fraudulently assigned to a lot
? Where there is a subdivision of a lot or an amalgamation of two or more lots
Alteration is also permitted if it has been provided for earlier under a staged development contract.