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Unit title guidance from Quay Law

What Happens If Unit Title Disclosure Is Late or Incomplete

Ian Mellett, Barrister and Solicitor, Quay Law

Until the 2022 reforms, the consequences of a seller failing to provide proper pre contract disclosure were uncertain. That uncertainty has now been resolved, and both buyers and sellers need to understand where they stand.

The Position Since 9 May 2023

Under the amended Unit Titles Act 2010, a buyer may delay settlement or cancel the agreement if the pre contract disclosure statement is late, incomplete, inaccurate or not provided at all. Rights to delay settlement or cancel also apply where the pre settlement disclosure statement is not properly given.

These provisions give real weight to the disclosure regime. Disclosure is no longer a formality that can be corrected informally at the last minute.

The Buyer's Rights

The buyer’s rights involve specific notices and time limits. Cancellation generally requires notice to the seller and an opportunity to correct the disclosure. The process for delaying settlement differs. The Act sets out the requirements, and the agreement for sale and purchase may contain related provisions. Take legal advice before acting.

The appropriate remedy depends on the nature of the failure. A missing document that can be supplied promptly is very different from a failure to disclose a known defect.

For Buyers: Acting Correctly

If you believe disclosure in your purchase is deficient, we recommend taking advice before you act. A notice that is incorrectly framed or served, or a cancellation that is not justified, could place you in breach of the agreement yourself. That can have serious financial consequences, including the potential loss of your deposit.

Equally, if a genuine problem exists, the earlier it is raised, the more options you are likely to have.

For Sellers: Preventing and Fixing Problems

The best protection for a seller is accurate disclosure prepared before the property is marketed. If a buyer identifies a problem, respond promptly and in full, and take advice on whether the deficiency can be remedied within the time allowed.

We recommend that sellers:

  • Prepare the pre contract statement before listing and have it checked.
  • Make sure every required attachment is included.
  • Request pre settlement disclosure from the body corporate early.
  • Keep a record of when each statement was given to the buyer.

Resolving Disclosure Problems

Where buyer and seller see a disclosure problem differently, early legal advice often allows a practical solution, such as a settlement adjustment or an agreed extension, to be reached within the transaction.

Related guides

What sellers of unit title property must disclose under the Unit Titles Act 2010, who prepares and signs each statement, and common mistakes to avoid.

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.

Speak with Quay Law

If a disclosure problem has arisen in your purchase or sale, contact us before taking any step.

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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    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.