Property guidance by Quay Law
Property guidance by Quay Law
Unit title guidance from Quay Law
Ian Mellett, Barrister and Solicitor, Quay Law
Auckland’s experience with leaky buildings has shaped the way many buyers approach apartments and townhouses. Weathertightness failure can be costly to repair, and in a unit title development that cost is shared by every owner.
A significant number of Auckland buildings constructed during the 1990s and early 2000s were affected by weathertightness failure, caused by a combination of building methods, materials and design. Many have since been remediated. Others have issues that are still being investigated, are under repair or have not yet come to light.
A building from this period is not necessarily affected, and a remediated building can be a sound purchase. The key is knowing which category a building falls into.
Since May 2023, the pre contract disclosure statement must include information about weathertightness issues affecting the development that are known to the body corporate. This applies whether or not the issues have been remediated and whether or not legal proceedings have been brought.
The minutes, remediation reports and financial statements included in the disclosure bundle often provide further detail.
Remediation may involve repairs to specific areas or a full reclad of the building. It is commonly funded through special levies, and in some cases through borrowing by the body corporate or staged payments over time. Owners may need to vacate during the work.
If a building has been remediated, we recommend obtaining details of the work, the consents and code compliance certificates, and any warranties. If remediation is underway or planned, the key questions are how much remains to be paid, by whom and when.
Sellers must disclose known weathertightness issues accurately. Clear, complete disclosure, supported by records of any remediation, helps buyers and lenders assess the building with confidence.
How building condition affects every unit title owner, what disclosure does and does not tell you, and which reports to obtain before you buy.
How body corporate levies are set in New Zealand, what the operating, maintenance and contingency funds are for, and how special levies work.
What to look for in body corporate AGM and committee minutes and financial statements before buying a unit title, explained by Quay Law Auckland.
How lenders approach unit title apartments and townhouses, what can affect lending, and how to protect yourself with the right finance condition.
If you are considering a unit in a building from the 1990s or early 2000s, we recommend contacting us before you sign.
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.