Unit title guidance from Quay Law

Unit Title Due Diligence Checklist

Ian Mellett, Barrister and Solicitor, Quay Law

A due diligence condition is your opportunity to investigate a unit title property properly before you are committed. The period is usually short, and the volume of documents can be considerable. A methodical approach makes the difference.

The checklist below sets out the matters we work through on a typical unit title purchase. It is a guide rather than a complete list, as every building and every transaction has its own features.

Before You Start: Allow Enough Time

The single most common difficulty in unit title due diligence is time. Body corporate records must be obtained, read and, where questions arise, followed up with the seller’s lawyer or the body corporate manager. Building inspectors and lenders have their own timeframes.

We recommend that you:

Obtain the pre contract disclosure statement and its attachments before you sign.
Agree a due diligence period that realistically allows for the size of the development.
Book your building inspection as soon as the agreement is signed.
Contact your lender early to confirm it will lend on the building.

The Title and Unit Plan

Confirm the record of title describes the principal unit you expect to buy.
Confirm any car park, garage or storage space is an accessory unit included in the sale.
Check the unit plan for unit boundaries and common property.
Review any easements, covenants or other interests registered against the title.
Confirm whether the development is layered, with more than one body corporate.

The Disclosure Documents

Check the pre contract disclosure statement is complete and was provided before you signed.
Read the notices and minutes of general and committee meetings for the previous three years.
Note any references to leaks, defects, remediation or major works.
Check whether any remediation or engineering reports were commissioned in the past three years.
Confirm the name and contact details of the body corporate manager.

Body Corporate Finances

Review the financial statements and audit reports for the previous three years.
Compare the current budget with the actual spending in previous years.
Check the balance of each body corporate fund.
Compare the long term maintenance plan with the funds available to pay for it.
Check for unpaid levies across the development and any special levies proposed or struck.

The Building Itself

Obtain a building inspection from a suitably qualified inspector, including common areas where access allows.
Obtain a LIM report from Auckland Council and consider the council property file.
Check the compliance schedule and building warrant of fitness for buildings with specified systems such as lifts or fire alarms.
Review the body corporate insurance, including the sum insured, the excess and any exclusions.

Rules and Lifestyle

Read the operational rules in full.
Check rules on pets, renovations, noise, rubbish, parking and the use of balconies.
If you intend to let the unit, check any rules relevant to tenancies or short stay accommodation.
Confirm any exclusive use areas, such as courtyards or car parks, and who maintains them.

What to Do If Something Concerns You

Finding an issue does not necessarily mean you should walk away. It may mean further enquiry, a price adjustment or a specific term in the agreement. In some cases, the right answer is to end the agreement under the due diligence condition.

What matters is that any decision is made with the facts in front of you, and within the time allowed. If you leave your concerns until after the condition date, your options narrow considerably.

Related guides

Reviewing the Pre Contract Disclosure Statement

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.

AGM Minutes and Financial Statements

What to look for in body corporate AGM and committee minutes and financial statements before buying a unit title, explained by Quay Law Auckland.

Long Term Maintenance Plans

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.

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 work through this checklist on every unit title purchase and take you through what we find. If you have an agreement in front of you, contact 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.

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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.