Unit title guidance from Quay Law

Building Risk in Unit Title Properties

Ian Mellett, Barrister and Solicitor, Quay Law

When you buy a freehold house, its condition is largely your own concern. When you buy a unit title, the condition of the whole building becomes your concern too, because the cost of repairing it is shared among the owners.

Why Building Condition Matters More in a Unit Title

A problem with the roof, cladding or structure of an apartment building affects every unit. Even if your own apartment is in excellent order, you will contribute to the cost of major repairs through levies or special levies. The building’s condition also affects insurance, lending and resale value for everyone in it.

The Main Building Risks

Weathertightness failure and the cost of remediation.
Inadequate insurance, high excesses or difficulty obtaining cover.
Deferred maintenance on roofs, lifts, mechanical systems and exteriors.
Unconsented work, or missing compliance documentation.

What Disclosure Tells You and What It Does Not

Since May 2023, the pre contract disclosure statement must include information about weathertightness issues, earthquake prone issues and other significant defects known to the body corporate. This is a substantial improvement.

However, disclosure depends on what the body corporate knows. It is not a building inspection, and it does not guarantee that a building is free of defects. Independent investigation remains important.

Independent Reports Worth Obtaining

A building inspection from a suitably qualified inspector, covering the unit and, where access allows, the common areas.
A LIM report from Auckland Council.
The council property file, for consents, code compliance certificates and notices.
Any engineering, remediation or condition reports held by the body corporate.

Building Risk Guides

Our guides cover each area in more detail:

Weathertightness and remediation.
Body corporate insurance.
Building warrants of fitness, compliance schedules and LIM reports.

Related guides

Weathertightness and Remediation

How weathertightness issues affect Auckland apartments and townhouses, what must be disclosed, and what to check before buying in an affected building.

Body Corporate Insurance

What a body corporate must insure, what owners need to insure themselves, how excesses work and what buyers should check before purchasing a unit title.

BWOF, Compliance Schedules and LIM Reports

How building warrants of fitness, compliance schedules, code compliance certificates and LIM reports help unit title buyers assess a building.

Speak with Quay Law

We review the building information in the disclosure bundle alongside your inspection report, so that you understand the building as well as the unit.

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.