Unit title guidance from Quay Law

Reading AGM Minutes and Body Corporate Financial Statements

Ian Mellett, Barrister and Solicitor, Quay Law

If the long term maintenance plan shows what a building is expected to need, the minutes show what the owners are actually worried about. Since May 2023, buyers receive three years of general and committee meeting minutes with the pre contract disclosure statement. Reading them properly is one of the most effective protections available.

Why Minutes Matter

Minutes are a record of decisions and discussions. They often reveal matters before they appear anywhere else: a leak that is being monitored, a problem with a contractor, a disagreement between owners or a repair that keeps being deferred.

Formal disclosure statements tend to describe the current position. Minutes show how that position developed and where it may be heading.

What to Look For in Minutes

Repeated references to leaks, moisture, cladding or water damage.
Discussion of major works, quotes or engineering reports.
Proposals for special levies, or decisions to defer them.
Insurance claims, premium increases or difficulty obtaining cover.
Ongoing disagreements between owners, or problems with the developer, builder or manager.
Changes to the operational rules.
Motions that were strongly contested or narrowly decided.
Low attendance, or difficulty reaching a quorum.

Committee Minutes

Committee minutes are often more detailed than general meeting minutes, as the committee deals with issues as they arise. They can show how quickly the committee responds to problems and whether owners’ concerns are being addressed.

Reading the Financial Statements

The financial statements show whether the body corporate manages its money well. We look at:

Whether actual spending is in line with the approved budget.
The balance of each fund and how it has changed over three years.
The level of unpaid levies owed by owners.
Significant unbudgeted expenses.
Any comments or qualifications in the audit report.

Questions to Raise

Where the minutes or accounts raise a question, it should be put to the seller’s lawyer or the body corporate manager during your due diligence period. Typical questions concern the status of planned works, the outcome of an insurance claim or the likelihood of a special levy.

Related guides

Reviewing the Pre Contract Disclosure Statement

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.

Body Corporate Levies and Funds

How body corporate levies are set in New Zealand, what the operating, maintenance and contingency funds are for, and how special levies work.

Speak with Quay Law

We read three years of minutes and financial statements on every unit title purchase and explain to you what they reveal.

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.

Tell us about your transaction

Choose the option that fits your enquiry.

What would you like help with?

Buying a unit titleSelling a unit titleBuying and sellingAnother unit title enquiry

Full name

Phone number

Email address

Property address

Have you signed an agreement?

Received the disclosure statement?

Is your property listed for sale?

Have you received an offer?

Your enquiry and any key dates

We will let you know how to send your agreement and disclosure documents. Sending an enquiry does not create a solicitor and client relationship.

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.