Changes to Apartment Living - Unit Titles Act Update

16 June 2022

Changes to the Unit Titles Act 2010 are due to come into force with the introduction of the Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022. The amendment Act will start when it is confirmed by regulations or on 9 May 2024 (being two years after it was given the Royal Assent).

As more New Zealanders look to apartment-style (unit title) living, it’s more important than ever to refer to current legislation. The amendment Act affects apartment owners and potential buyers of apartments, as well as body corporate managers and committees.

Some of the key changes in the amendment Act are:

  • The body corporate must keep an agenda for its meetings and comply with other record keeping obligations.
  • Electronic voting and attendance by audio-visual means for body corporate meetings are now allowed.
  • Body corporate committee members must comply with a code of conduct including disclosing conflicts of interest.
  • While pre-contract and pre-settlement disclosure requirements for potential buyers remain, the provisions relating to delays and cancelling purchase contracts as a result have been clarified.
  • For large unit title developments with ten or more apartments, there will be additional compliance obligations such as having a body corporate manager and a 30-year long-term maintenance plan.
  • The Tenancy Tribunal will be able to deal with unit title disputes up to $100,000 in value, impose fines on body corporate managers who breach their duties and, within certain limits, award costs for legal costs and disbursements.
  • New powers are given to MBIE for inspections, for the issue of improvement notices and to bring proceedings for non-compliance.

This list details only some of the changes in the amendment Act. If you would like more information on how these changes may impact you, please get in touch with us.

Private Client Team