Property guidance by Quay Law
Property guidance by Quay Law
Unit title guidance from Quay Law
Ian Mellett, Barrister and Solicitor, Quay Law
Selling a unit title involves the same broad steps as selling any property in New Zealand, with one important addition. You must provide the buyer with prescribed information about the body corporate at two stages of the sale, and since May 2023 the consequences of getting this wrong have become more serious.
There are two disclosure statements in a unit title sale:
Both statements draw heavily on information held by the body corporate. The pre contract statement in particular now requires three years of meeting minutes and financial statements, the long term maintenance plan and information about known defects.
The best time to prepare disclosure is before your property goes on the market. Gathering records from the body corporate takes time, and buyers increasingly expect to see a complete statement at the first open home.
We recommend that you request the body corporate information as soon as you decide to sell, authorise your lawyer or agent to deal with the body corporate manager directly, and have the completed statement checked before it is given to buyers.
When an offer is received, we recommend that your lawyer reviews the agreement before you sign it. Buyers of unit titles commonly include due diligence conditions, and they may raise questions about the disclosure during that period. Prompt and accurate answers help keep the sale on track.
Every time an agreement is amended and returned to the other party, it is in law a counter offer. The contract is formed when both parties have signed the same terms.
Once the agreement is unconditional, the pre settlement disclosure statement must be prepared and given to the buyer within the required time. It is accompanied by the required body corporate certificate and confirms the levies and any amounts owing.
Your lawyer then prepares the settlement statement, apportioning levies and rates between you and the buyer. On settlement, the buyer’s funds are received, any mortgage is repaid and the title is transferred. We notify the body corporate of the change of ownership.
Our seller guides cover each aspect in more detail:
What sellers of unit title property must disclose under the Unit Titles Act 2010, who prepares and signs each statement, and common mistakes to avoid.
When the unit title pre settlement disclosure statement is due, what it confirms, and how body corporate levies are apportioned between seller and buyer.
Since May 2023 buyers may delay settlement or cancel if unit title disclosure is late, incomplete or inaccurate. How the process works for buyers and sellers.
What a body corporate is, what it must do, how committees and managers work, and your rights and obligations as a unit title owner in New Zealand.
The earlier we are involved in a unit title sale, the smoother it tends to be. We recommend contacting us when you first decide to sell.
If you are buying or selling a unit title property in Auckland, we recommend speaking with us before you sign an agreement. Contact Ian Mellett at Quay Law, Barrister and Solicitor, by completing our enquiry form below, or call us on 09 523 2408.
The information on this page is provided for general information purposes only and is not legal advice. Every transaction is different, and all matters should be discussed with the team at Quay Law.