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November 2014
Presented by:
Kay Keam
Current issues with
Unit Titles
Introduction
1972• Flats, not apartments• Largely residential• Low rise
2010• 4,000 people living in
Hobson Street• Leaky buildings• Mixed uses
Topics for today
• Disclosure
• Body corporate rules
• Selling off plans
• Issues for vendors and purchasers
• Other issues under the Unit Titles Act
Disclosure
Pre Contract Pre Settlement
Additional Turnover
Pre Contract Disclosure• Prescribed form• Content
– Levies– Maintenance in next 12 months– Funds– Weathertightness– Unit titles and conveyancing 101– Cost of additional disclosure
• No statutory consequences
Pre Settlement Disclosure• Details prescribed but not form• DBH template• Content
– Unit and body corporate number– Levies and charges for unit and debts by other units– Repairs of building elements and infrastructure– Interest rate– Litigation against body corporate– Changes from default operational rules since disclosure
• Body corporate certificate• Consequences for non disclosure but no approval rights• Deposit and disclosure tension if long term settlement
Additional Disclosure
• Under used• Prescribed form and
DBH template
Content of additional disclosure
Contact details for body corporate and committee
Funds
Creditors
Expenses
Debtors
Insurance
Content of additional disclosure (cont.)
Contracts
Ground leases
Motions at last meeting
Rules
Long term maintenance plan
Additional disclosure
• Can ask for part• Timing for request• Right of cancellation if no disclosure• Need right to approve• Deposit• Paying for it
Turnover disclosure
• Developer• When sells 25%
Sold
Content of Turnover disclosure– Date– As built plans and specs– Assets and liabilities of body corporate– Leases/licences of common property– CCC– Maintenance schedules– Resource consent and heritage obligations– Warranties and guarantees– Fire evacuation plans and fire protection systems– Building WOF– Compliance schedule– Maintenance and service contracts
Body Corporate Rules
Default rules1. Owner or occupier must not:
a) Damage or deface common property;b) Leave rubbish or recycling material on the common property;c) Create noise likely to interfere with the use or enjoyment of the
unit title development by other owners or occupiers;d) Park on the common property except in designated areas or as
the body corporate consents;e) Interfere with the reasonable use or enjoyment of the common
property by other owners or occupiers.
2. Owner or occupier must dispose of rubbish hygenically and tidily.
Body Corporate rules
• Different from old Act
• Very basic
Body Corporate Rules
• DBH guidelines• ADLSi model operational rules• Careful review• Ultra vires
Selling Off Plans
• Conditions• Variations• Substitutions• Encumbrances• Body corporate rules• Sunset dates• Accruals clause• Maintenance period
Issues for vendors and purchasers
• Right of cancellation• Consent to alterations• Encroachment into common property• Remediated properties• Disclosure of weathertightness issues• Mortgagee sale
Other issues under the Unit Titles Act
Appointment of a chairperson
Long term maintenance plans
Governance and advice
