Property guidance by Quay Law
Property guidance by Quay Law
Unit title guidance from Quay Law
Ian Mellett, Barrister and Solicitor, Quay Law
Freehold and unit title are the two most common forms of residential ownership in Auckland. Many buyers moving from a house to an apartment or townhouse are making the change from one to the other for the first time.
With a freehold title, you own the land and the buildings on it. With a unit title, you own your unit and share ownership of the land and common property with the other owners through the body corporate.
A freehold owner makes their own decisions about maintenance, alterations and use, subject to council rules and any covenants. A unit title owner shares many of those decisions with other owners. Major repairs, rule changes and budgets are decided collectively, and you may be bound by decisions you did not support.
A freehold owner pays rates, insurance and maintenance directly, as and when needed. A unit title owner pays rates and contents insurance directly, and contributes to building insurance, maintenance and administration through body corporate levies. Levies make costs more predictable, but they are payable whether or not you agree with the spending.
In a unit title, the body corporate is responsible for maintaining the common property and the building elements, which spreads the cost and the organisation. The trade off is that you depend on the body corporate to act, and to save enough money to do so.
Freehold due diligence focuses on the title, the LIM and the condition of the house. Unit title due diligence adds the disclosure statements, three years of minutes and financial statements, the long term maintenance plan, the insurance and the rules. It typically takes more time and more careful reading.
Neither is better in every case. Freehold offers control. A unit title offers shared responsibility, often in locations and building types that would otherwise be out of reach. The right choice depends on your priorities, your budget and the particular property.
A plain comparison of freehold, unit title, cross lease and leasehold property in New Zealand, and why the title type matters before you make an offer.
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.
What to check before buying an apartment or townhouse on a unit title: the title, disclosure, minutes, finances, maintenance plan, insurance and building.
If you are moving from freehold to unit title ownership, we can take you through the differences as they apply to the property you are considering.
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.