When a developer agrees to buy your combined site for one price, the next question is how that price gets divided fairly between everyone who owns a share. This free tool models four accepted allocation methods live, straight split, unit entitlement, land rate or market value, so your ownership group can see the outcome before you negotiate.
A developer negotiates one price for one combined site. How that price is then split between the individual owners, lots or strata units is a separate decision, and it is one the ownership group needs to agree on for the transaction to succeed.
There are different ways to split a total purchase price. Strata renewal sales in NSW are typically distributed by unit entitlement. Standalone neighbours amalgamating a site are often split by land value.
Many deals die before they even begin, purely because the ownership group cannot agree on a splitting mechanism. Enter your numbers below and switch between methods to see how each one changes the outcome and which may be the most suitable for your group. If you're working through an amalgamation and want a hand navigating the process, reach out.
Houses and torrens title lots don't have a registered unit entitlement, so land size drives the split instead.
The single price agreed or offered for the whole amalgamated site.
Each house, lot or ownership interest in the sale.
The total price is divided equally between every unit, regardless of size or value.
Each house receives a share proportional to its land size, at one uniform rate per square metre.
Each unit receives a share proportional to its own independent market value.
Each unit keeps its own market value, then the uplift above combined market value is split equally.
This calculator is a tool to help ownership groups model allocation approaches ahead of a negotiation. It is not legal, financial or tax advice. Any agreed split should be set out in the relevant sale documentation.
There is no single fairest method, it depends on how the ownership group agreed to sell and what each owner is contributing. Strata schemes usually split by registered unit entitlement, standalone neighbours amalgamating often split by independent market value, and many amalgamation groups use a hybrid approach where each owner keeps their own property's value and then shares the uplift created by combining sites equally.
Unit entitlement is the fixed proportion assigned to each lot in a strata scheme's registered strata plan, used for levies and voting. Under the NSW strata renewal process, a collective sale price is typically distributed according to unit entitlement unless owners agree to a different distribution method in the collective sale order.
The hybrid method is built for this. Each owner is first allocated their property's own independent market value, then the remainder, the uplift a developer pays for the combined site over the sum of the individual values, is split equally among the owners. This rewards everyone for the amalgamation itself, not just for the property they already held.
Generally no. A developer buying an amalgamated site is focused on the total price and settlement terms for the combined site. How that single price is then divided between the individual owners is a matter for the ownership group, usually documented in a deed of arrangement or the terms of the collective sale order, separate from the contract with the developer.
Unit entitlement only exists for registered strata schemes, so it does not apply to standalone houses or torrens title lots being amalgamated. For houses, owners more commonly agree to split the combined price at one uniform rate per square metre of land, so each house's share reflects its own land size rather than an arbitrary entitlement figure. This land rate method is the practical equivalent of unit entitlement for a group of neighbouring houses.
Chem Property structures amalgamation sales end to end, from aligning neighbours and strata owners on terms through to negotiating the price and agreeing a fair allocation. We can model your specific numbers with you.