Once in a while I’m asked about what this term means or represents by an owner in a Whistler condo. In the phase 2 buildings this is important as it determines the revenue split in most cases.
The strata property act in B.C. has two terms- unit entitlement and interest upon destruction.
Unit entitlement is a number assigned to each strata lot that determines the share of common property and assets belonging to each strata lot. It is a key factor in the share of strata corporation expenses and liabilities of each strata lot owner including strata fees and special levies. Properties with the same square footage have the same unit entitlement.
Interest upon destruction is the proportional interest that the strata unit owner would get if the building is destroyed, and is usually based upon the relative value of the strata unit, as compared to the whole building. IUD recognizes that some units are more desirable than others with better views or location in the building. IUD is assigned off the initial sale prices of the building.
Most of the phase 2 building use IUD for determining each unit’s share of the rental pool funds.