LEGAL
Potential changes to the Unit Titles Act may be on the way…
Many issues have arisen with the Unit Titles Act and Regulations since the Act came into force in 2010.
Some further changes may be in the pipeline, in the form of the Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Bill. This was introduced into Parliament in July 2020, but has not yet reached the First Reading stage. Although there may be further changes to this as it makes its way through the Parliamentary processes, we detail below some of the changes that have been put forward, as they will be of interest to many agents.
• Whether any part of the unit title development has weathertightness issues the subject of a claim or remediated without a claim, or earthquake-prone issues
• Improve the disclosure regime for prospective purchasers of units
• Financial statements or audit reports for the last seven years
• Strengthen governance arrangements
• Notices and minutes of meetings for the last three years including all supporting documentation
We summarise the changes as follows:
The Disclosure Regime All disclosure statements would, under the proposed changes, have to be “endorsed by” the body corporate (or developer) as being correct. This is different from the current position, where Vendors are required to sign the Pre-Contract Disclosure Statement solely, without any certification from the body corporate. Currently a certificate must be provided by the body corporate confirming the PreSettlement Disclosure Statement is correct, but not for any other types of disclosure. In practice, the signing and certification The Real Estate Institute of New Zealand
Additional information must now be provided in the Pre-Contract Disclosure Statement. This is the statement signed before an Agreement is signed:
• Whether the body corporate is involved in legal proceedings
• Ensure planning and funding for long-term maintenance of unit titled properties.
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procedure is often not done correctly.
The general purposes of the Bill are:
• Increase professionalism and standards for body corporate managers
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Lindsey Smith, Senior Registered Legal Executive, Rainey Collins
• The name and contact details of the body corporate manager • Body corporate levies for the unit for the current financial year • Details of any outstanding amounts • Details of any amounts held in credit for the unit • Proposed works under the long-term maintenance plan for the next three years and estimated costs • The next review date for the long-term maintenance plan; and • A summary of insurance held by the body corporate including the insurer’s contact details, the type of cover, premium, excess, specific exclusions, and statement as to where or how to view the policy.
