Commencement dates for changes to the Unit Titles Act have now been announced.
The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 (the Amendment Act) became law on 9 May 2022. The purpose of the Amendment Act is to provide greater protections for unit owners or prospective buyers.
The changes come into force across 3 key dates:
- Provisions to support remote attendance at meetings will take effect on 9 December 2022.
- Most of the provisions come into force on 9 May 2023.
- Provisions that need more time to implement will take effect on 9 May 2024.
The changes that come into force on 9 May 2023 include:
- improved requirements for pre-purchase disclosure to protect buyers of unit titles
- greater accountability and clarity for how bodies corporate are governed, including voting rules, requirements on committee members, and a code of conduct for committee members
- the inclusion of body corporate managers in the Unit Titles Act, setting out their responsibilities, and including a code of conduct
- improving access to dispute resolution, for example, by reducing the application fees to the Tenancy Tribunal
- greater flexibility for bodies corporate in deciding utility interests, and the ability to charge for services supplied to accessory units.
The changes that come into force on 9 May 2024 are:
- all changes to requirements for long-term maintenance plans and funds
- the requirement for a contract between a body corporate and a body corporate manager to contain specific terms
- the enforcement provisions for the regulator
- the provisions which require regulations to be made:
- the new costs regime for legal fees in the Tenancy Tribunal,
- the documents that the regulator can request from a body corporate or body corporate manager, and
- electronic voting before or at meetings.
Find out more about the changes to the Unit Titles Act on:
- The Unit Titles website(external link)
- The Ministry of Housing and Urban Development’s website(external link)
What is a Unit Title?
Unit title owners own a defined part of a building, such as an apartment, and share common areas such as lifts, lobbies or driveways with other owners.
Residential unit title properties are typically apartment blocks and townhouses. Commercial and industrial types include office blocks, industrial or retail complexes, and shopping malls.
This combination of individual and shared ownership of land and buildings means owning a unit title property involves a different set of rights and responsibilities than free-standing house and land ownership.
Find out more about Unit Titles and body corporate(external link)
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