Property guidance by Quay Law
Property guidance by Quay Law
Unit title guidance from Quay Law
Ian Mellett, Barrister and Solicitor, Quay Law
Some unit title developments have more than one level of body corporate. These are known as layered developments. They are common in larger and mixed use projects, and they add a layer of governance and cost that buyers need to understand.
In a layered development, a principal unit in the head development is itself subdivided into further units under a subsidiary unit plan. The result is a head body corporate for the whole development and one or more subsidiary bodies corporate for the subdivided parts.
A typical example is a mixed use building where the residential floors form one principal unit at the head level, which is then subdivided into individual apartments, while the retail floors form another.
Each body corporate has its own members, its own rules and its own meetings. The head body corporate deals with matters affecting the whole development, such as the structure, exterior and shared services. The subsidiary body corporate deals with matters affecting its own part.
As an apartment owner in a subsidiary development, you are a member of the subsidiary body corporate, which in turn participates in the head body corporate.
Costs arise at both levels. The head body corporate levies its members, and the subsidiary body corporate passes its share on to its own owners, together with its own costs. Owners therefore contribute to two budgets, two sets of funds and potentially two long term maintenance plans.
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.
How body corporate levies are set in New Zealand, what the operating, maintenance and contingency funds are for, and how special levies work.
A plain English guide to unit titles in New Zealand: principal and accessory units, common property, the unit plan and the body corporate.
Layered developments require careful review. If the building you are considering has more than one body corporate, we can make sure you see the full picture.
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.