Property guidance by Quay Law
Property guidance by Quay Law
Unit title guidance from Quay Law
Ian Mellett, Barrister and Solicitor, Quay Law
When you buy an apartment or townhouse on a unit title, you are making two commitments at once. You are buying your own unit, and you are joining a body corporate whose finances, decisions and building will affect you for as long as you own it.
Most purchases proceed smoothly. The ones that do not usually share a common feature: the buyer signed before understanding what the body corporate documents were saying. This section of our site sets out how a unit title purchase works and what to check at each stage.
A freehold purchaser is largely concerned with one house on one piece of land. A unit title purchaser must also consider a shared building, shared funds and shared decisions.
Since 9 May 2023, the seller must give you a pre contract disclosure statement before you sign. It now includes three years of meeting minutes and financial statements, the long term maintenance plan and information about known defects. This is valuable information, but it arrives as a large bundle, often at a time when you are under pressure to commit.
The questions that matter are practical ones. Is the levy realistic? Is major work coming? Is the building sound? Is the body corporate well run? The answers are usually in the documents, but they are rarely stated plainly. Reading them carefully is what protects you.
The broad stages are the same as any property purchase in New Zealand. What changes is the work required at each stage.
The pre contract disclosure statement must be provided before you enter into the agreement. We recommend obtaining it as early as possible and having your lawyer review the Agreement for Sale and Purchase prior to signing, so that appropriate conditions are included. Once the agreement is signed by both parties, a binding contract is formed.
A due diligence condition gives you time to investigate. During this period your lawyer searches the title and unit plan and works through the minutes, financial statements, maintenance plan, insurance and rules. You should also arrange a building inspection by a suitably qualified inspector and obtain a LIM from Auckland Council.
Some lenders apply particular criteria to apartment buildings, so your finance condition should allow enough time. Before settlement, the seller provides a pre settlement disclosure statement, accompanied by the required body corporate certificate. On settlement day, title passes to you and you become a member of the body corporate.
Several parties are involved in a unit title purchase, and it helps to know where each one’s interests lie.
Understanding these roles makes it clear why independent legal advice matters. Of all the parties involved, your lawyer is the one whose sole obligation is to protect your interests.
Our buyer guides cover each stage in more detail:
What to check before buying an apartment or townhouse on a unit title: the title, disclosure, minutes, finances, maintenance plan, insurance and building.
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.
What to check when buying an Auckland apartment, from the building and body corporate to car parks, rules, KiwiSaver and letting, explained by Quay Law.
Buying off the plan? Where your deposit is held, when it is payable and how the sunset clause works are the key checks. Quay Law explains.
How lenders approach unit title apartments and townhouses, what can affect lending, and how to protect yourself with the right finance condition.
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.
The most valuable time to involve your lawyer in a unit title purchase is before you sign. A short conversation at that stage can shape the conditions in your agreement and save considerable cost later.
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.