Are you considering buying a unit title property?
We can help you understand the ins and outs of buying unit title property – contact NZ property law expert, Jennifer Edwards today to set up an appointment.
16 April, 2019 | Jennifer Edwards
You also own an undivided share of the common property – for example driveways, lobbies, garden resident areas.
Unit title properties are governed by the Unit Titles Act 2010 and are administered by a body corporate.
The body corporate will control the management of, and expenditure for, the units within the development and this is usually administered by an appointed body corporate secretary. Owners of units in the development also form a body corporate committee.
There are body corporate rules which set out the rights and obligations of the body corporate and the unit owners. Body corporate rules often contain prohibitions on things like pets, alterations to units, noise, litter, tidiness (among other things).
There are annual costs involved with body corporates, generally referred to as body corporate levies. These annual levies go towards the insurance premium, maintenance and repairs, lighting, common area gardens and a long term maintenance fund for the development as a whole.
Compared to selling other types of residential property, there are very stringent legal requirements regarding what the seller or vendor of a unit title property must disclose to a potential purchaser when selling their property. As a seller it is important to understand the requirements regarding what you must provide to potential purchasers.
As a purchaser of unit title property it is vital you fully review all the compulsory disclosure, request the non-compulsory disclosure & talk through the implications with a property law professional who is skilled in dealing with unit title properties.
Read Disclosure Requirements Under The Unit Titles Act 2010 to learn more about these requirements.
An example of a legal description to a unit title property would be: (a stratum estate in Fee Simple or Leasehold in Unit A and Accessory Unit 1 (garage, parking area, storage area) Deposited Plan 12345).
18 September, 2013 | Jennifer Edwards
24 June, 2015 | Jennifer Edwards