Property guidance by Quay Law
Property guidance by Quay Law
Unit title guidance from Quay Law
Ian Mellett, Barrister and Solicitor, Quay Law
The long term maintenance plan is one of the most useful documents available to a unit title buyer. It shows what the building is expected to need, when, and at what cost. Read alongside the fund balances, it gives a clear indication of whether levies are realistic.
Every body corporate must have a long term maintenance plan. The plan identifies the significant items of maintenance and replacement expected over its term, estimates their cost and sets out how the body corporate intends to fund them.
A copy of the plan must now be included with the pre contract disclosure statement, together with its next review date and any works proposed within the next three years.
The 2022 reforms strengthened the rules on long term maintenance planning, with the final provisions taking effect on 9 May 2024.
For large developments of ten or more principal units, the plan must:
Smaller developments of nine units or fewer may continue with a plan covering at least ten years.
When reviewing a plan, we look at:
A plan on its own is a list of intentions. What matters is whether there is money to carry it out. Comparing the plan with the balance of the long term maintenance fund, and with the levies being collected, shows whether the body corporate is saving at a realistic rate or deferring the cost to future owners.
How body corporate levies are set in New Zealand, what the operating, maintenance and contingency funds are for, and how special levies work.
What a unit title pre contract disclosure statement must contain since 2023, what to look for when reading it, and your rights if it is late or incomplete.
What the Unit Titles Amendment Act 2022 changed for buyers, sellers and owners, including disclosure, maintenance plans, managers and meetings.
The long term maintenance plan is one of the first documents we read on a unit title purchase. Send it to us with your disclosure statement.
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.