Property guidance by Quay Law
Property guidance by Quay Law
Unit title guidance from Quay Law
Ian Mellett, Barrister and Solicitor, Quay Law
The Unit Titles Act 2010 requires sellers of unit title property to provide buyers with specific information about the unit and the body corporate. These obligations were substantially expanded by the 2022 reforms, and since 9 May 2023 buyers have clear rights if disclosure is not made properly.
A unit title sale involves two disclosure statements, each given at a different stage.
The pre contract disclosure statement must be given to a prospective buyer before they enter into the agreement. It must include or be accompanied by, among other things, the levies for the unit, the balance of each body corporate fund, the long term maintenance plan, three years of meeting minutes, three years of financial statements and audit reports, and information about known weathertightness issues, earthquake prone issues and other significant defects.
The pre settlement disclosure statement must be given no later than five working days before settlement. It confirms matters current at that time, including the levies payable, any amounts unpaid and any changes to the operational rules since the pre contract statement was given.
The pre contract disclosure statement is signed by the seller. The pre settlement disclosure statement is accompanied by the required body corporate certificate as correct.
In practice, much of the information comes from the body corporate or its manager. In larger developments, the manager will often prepare the information on request. In smaller developments without a manager, gathering the records can be more difficult. Your lawyer can help identify who must prepare, sign or certify each required document.
Problems with disclosure usually arise from haste rather than intent. Common mistakes include:
Developers selling units off the plan are subject to separate disclosure requirements that reflect the absence of an established body corporate history. Developers should take advice on the specific information required.
Before the reforms, a buyer could request an additional disclosure statement. That requirement has been repealed, and sellers are no longer obliged to provide one. Buyers may still ask questions during due diligence, and accurate answers remain important.
When the unit title pre settlement disclosure statement is due, what it confirms, and how body corporate levies are apportioned between seller and buyer.
Since May 2023 buyers may delay settlement or cancel if unit title disclosure is late, incomplete or inaccurate. How the process works for buyers and sellers.
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 the Unit Titles Amendment Act 2022 changed for buyers, sellers and owners, including disclosure, maintenance plans, managers and meetings.
We prepare and check disclosure for unit title sellers and liaise with the body corporate on your behalf.
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.