The Unit Titles Act 1972 (the law governing multi-owned property) is up for review.Major changes in the number, scale and nature of property developments in New Zealand means the Act no longer provides a sound basis for the creation and sustainable management of intensive, multi-unit developments. One of the changes proposed includes a requirement for body corporates to establish long-term maintenance plans and long-term maintenance funds, and broadens the role of the body corporate in relation to maintaining and managing the building as a whole. The aim of this change is to encourage sound property management practices which will help protect the long-term value of investments.
Other changes proposed in the Bill will:
- Make managing unit title developments easier and more efficient by clarifying rights and responsibilities of unit owners, the body corporate, developers and tenants, and by allowing the body corporate to act on behalf of all the unit owners for the good of the development as a whole.
- Make joint decision-making by the body corporate easier by promoting participation and by removing requirements for unanimous resolution.
- Make information more readily available to purchasers, unit owners and the body corporate so that they can make informed choices by introducing disclosure requirements for vendors and developers.
- Establish effective ways to sort out problems and move forward by providing for the Government to establish a dispute resolution service for unit title matters covering education and information, mediation and adjudication.
- Make survey and title processes more streamlined for surveyors and developers by making the staged development process more flexible.
- Allow for large, staged or complex unit title developments to be set up and managed more easily by providing for ownership structures to include ownership of common property by the body corporate.
The Unit Titles Bill had its first reading in Parliament on 5 March 2009 and it is now at the Social Services Select Committee for consideration, where any member of the public can submit views or concerns regarding the Bill.
Please watch this space for further news on the Act and if you know of a Body Corporate that requires assistance in any aspect of the management of their property, then please do not hesitate to contact us.
