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Unit title guidance from Quay Law

Unit Title Frequently Asked Questions

Ian Mellett, Barrister and Solicitor, Quay Law

These are the questions we are asked most often about unit title property. Each answer is a general guide. For advice on your own purchase or sale, please contact us.

Buying

There is no legal requirement to have a lawyer review it, but we strongly recommend it. The statement and its attachments are lengthy and technical, and the most important information is often in the detail of the minutes and the long term maintenance plan.

Before you sign the agreement. At that stage, conditions can be included to protect you, and the disclosure can be reviewed while you still have every option open.

It may be. Many Auckland townhouse developments are unit titles, but others are freehold, cross lease, or freehold with a residents’ society. The record of title confirms the position.

Only if it is an accessory unit on your title, or you are granted rights to use it. A car park on common property is not owned by you. Your lawyer should check the title and unit plan.

In certain circumstances, yes. Buyers may have rights to delay settlement or cancel if disclosure is not properly given. The notice requirements and time limits differ. Cancellation generally requires an opportunity for the seller to correct the disclosure. Take legal advice before acting.

Selling

Before the buyer signs the agreement. In practice, it should be ready before your property is marketed.

No later than five working days before settlement. It is accompanied by the required body corporate certificate, so request it early.

No. Money paid into body corporate funds belongs to the body corporate and stays with the building.

Body Corporate

Levies fund the budget approved by the body corporate. Each owner’s share is generally based on utility interest. Different sets of utility interests may apply to particular costs or services.

An additional charge raised when the body corporate needs funds beyond its budget, often for major repairs or remediation. On a purchase or sale, check the levy resolutions, payment dates and the agreement to establish how the cost will be allocated.

Work inside your unit may still need body corporate approval, particularly if it affects the structure, plumbing, flooring or common property. Check the rules and seek approval before starting.

Building Risk

The pre contract disclosure statement must include known weathertightness issues. We also recommend reviewing the minutes, the LIM and the council property file, and obtaining a building inspection.

The body corporate insures the buildings. You need your own contents insurance, and you should check whether any improvements you own need separate cover.

Related guides

A clear guide to buying an apartment or townhouse on a unit title in Auckland, from the disclosure statement through to settlement, from Quay Law.

A guide for Auckland sellers of apartments and townhouses on unit titles, covering disclosure obligations, timing and settlement, from Quay Law.

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.

How building condition affects every unit title owner, what disclosure does and does not tell you, and which reports to obtain before you buy.

What the Unit Titles Amendment Act 2022 changed for buyers, sellers and owners, including disclosure, maintenance plans, managers and meetings.

Speak with Quay Law

If your question is not answered here, or you need advice on a particular property, we are happy to help.

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

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    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.