Unit Title Changes: New Zealand

There have been a number of changes in recent years that affect units, apartments, and their titles.

The “Unit Titles Act of 2010” improves on the 1972 Act in several ways, including:

1. Clarify what a head unit really is.

2. Streamline the processes involved in the construction of a development of units or departments.

3. Create a more flexible system for calculating how much a unit owner must contribute to the corporate funds.

4. Now, affirm that the legal entity is the owner of what is known as “common property”.

5. Clarify the rights and responsibilities of unit owners and corporate entities.

6. Create more efficient and transparent governance and management structures.

7. Reduce the voting numbers for most of the decisions of legal persons.

8. Provide clearer disclosure of issues to buyers and sellers, developers, and corporate entities.

9. Provide a more effective dispute resolution service through the Tenancy Court.

So how does all this affect me?

If you own, or are considering buying, property that has a unit title, there are a few factors that can affect you.

For those thinking of buying, there are a number of points you might want to know.

1. What insurance exists and is it adequate for the entire development of the unit?

2. Is there anything in the rules of the Corporate Corporation that is contrary to the Annexes of the Law?

3. Are there outstanding liens, as they must be paid before liquidation?

4. Do you rent accessory units, such as garages or parking lots?

5. Is the title clear of any dealings related to common property?

For those who own a unit, there are a few things to do.

1. Comply with the laws and regulations related to the use of the unit.

2. Carry out any work ordered by the council.

3. Please repair and maintain the unit to avoid damage to common property or other units.

4. Have the consent of the Legal Entity before making additions or alterations.

5. Allow the access of the agents of the Legal Entity in reasonable times for inspections, maintenance controls, repairs to the common goods and that the norms are complied with.

For those thinking of selling a unit, some of the things to do are:

1. Be sure to pay all fees, charges and taxes associated with the unit.

2. That Form 18, the Pre-Contract Disclosure form, be prepared, completed, and obtained from the Corporate Body before the unit is listed for sale.

3. Have a pre-settlement disclosure form completed and made available to the buyer prior to the settlement date.

4. If the unit is leased and managed, have all keys, keys, and appliance manuals readily available.

5. All parking areas, lockers, and storage areas are identified.

The changes create a more transparent unit title that requires owners to provide people with information that wasn’t as readily available before.