Property guidance by Quay Law
Property guidance by Quay Law
Unit title guidance from Quay Law
Ian Mellett, Barrister and Solicitor, Quay Law
An apartment can be an excellent first home, investment or place to downsize. It can also be a purchase where the building, rather than the apartment itself, determines whether the decision was a good one.
This page covers the matters specific to buying an apartment in Auckland, in addition to the general steps set out in our buyer guides.
When you buy an apartment, the body corporate is responsible for much of what affects your day to day life: the lifts, the lobby, the roof, the cladding, the car park and the rules about how the building is used.
That brings real benefits. You are not responsible for organising roof repairs or exterior painting yourself, and the cost of maintaining a substantial building is shared across many owners. It also means your costs and your enjoyment of the property depend on how well the body corporate is run.
Before buying, we recommend forming a view of the body corporate as an organisation. Is it well organised? Are its finances in order? Do owners attend meetings and make decisions, or is important work repeatedly deferred? The minutes and financial statements usually answer these questions.
Apartment buildings raise particular issues that are less common in townhouse developments:
Many first home buyers in Auckland start with an apartment. If you are using a KiwiSaver first home withdrawal, apply to your KiwiSaver provider early. The application includes a statutory declaration that must be signed in front of a lawyer or other authorised person, and funds cannot be released until the withdrawal is approved.
Quay Law regularly helps first home buyers, including with their KiwiSaver first home withdrawals. We recommend involving us at an early stage so that the application does not delay settlement.
If you intend to let the apartment, check the operational rules carefully. Tenants are generally required to comply with the body corporate rules, and as owner you remain responsible to the body corporate for their conduct. Some developments have rules relevant to short stay accommodation, and residential tenancies must meet the healthy homes standards.
Investors should also look closely at levies, as they reduce rental returns, and at any planned works that could lead to special levies.
For many downsizers, an apartment offers security and freedom from maintenance. The change from owning a house outright to sharing decisions with other owners can take some adjustment. Reading the rules and recent minutes before buying gives a good sense of what life in the building is like.
What to check before buying an apartment or townhouse on a unit title: the title, disclosure, minutes, finances, maintenance plan, insurance and building.
How weathertightness issues affect Auckland apartments and townhouses, what must be disclosed, and what to check before buying in an affected building.
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 to read a unit plan, the difference between principal and accessory units, and why boundaries matter when you buy an apartment or townhouse.
How lenders approach unit title apartments and townhouses, what can affect lending, and how to protect yourself with the right finance condition.
Whether this is your first home, an investment or a move from a family home, we can review the building and body corporate documents 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.