Property guidance by Quay Law
Property guidance by Quay Law
Unit title guidance from Quay Law
Ian Mellett, Barrister and Solicitor, Quay Law
Every unit title development has a body corporate, whether it is a high rise apartment building or a complex of four townhouses. When you buy a unit, you become a member automatically on settlement. Understanding how the body corporate works is essential to understanding what you are buying.
A body corporate is made up of all the unit owners in a development, acting together. It is created when the unit plan is deposited and it continues for as long as the development exists.
The body corporate owns the common property on behalf of the owners and is responsible for the shared parts of the development. It makes decisions at general meetings, where owners vote, and may delegate many of its functions to a committee.
The body corporate’s duties under the Unit Titles Act 2010 include:
Many bodies corporate elect a committee to deal with matters between general meetings. Larger developments usually appoint a professional body corporate manager to handle administration, finances, insurance and records.
Since the 2022 reforms, committee members and body corporate managers must comply with a code of conduct, which includes acting in the best interests of the body corporate and disclosing conflicts of interest. Management contracts must also include certain minimum terms.
A large development is one with ten or more principal units. Large developments must have a body corporate manager unless the owners resolve otherwise by special resolution, and must maintain a long term maintenance plan covering at least thirty years. Smaller developments have lighter requirements, but the same core duties apply.
As an owner, you have the right to attend general meetings, vote on resolutions and access body corporate records. You must pay your levies when due, comply with the operational rules and allow access to your unit for necessary work. Owners must generally be up to date with their levies in order to vote.
How body corporate operational rules work in New Zealand, what they commonly cover, including pets, renovations and letting, and how to check them 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 a body corporate long term maintenance plan must contain since 2024, how to read one before buying, and the warning signs to look for.
What to look for in body corporate AGM and committee minutes and financial statements before buying a unit title, explained by Quay Law Auckland.
If you are buying into a body corporate, we can review its rules, finances and records and explain what they mean for you before you commit.
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.