Unit Titles Act 2010

1: Title
This Act is the Unit Titles Act 2010.
2: Commencement
1: This Act comes into force on a date to be appointed by the Governor-General by Order in Council.
2: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 2(1) brought into force 20 June 2011 clause 2 Unit Titles Act 2010 Commencement Order 2011 Section 2(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
1: Preliminary provisions
3: Purpose
The purpose of this Act is to provide a legal framework for the ownership and management of land and associated buildings and facilities on a socially and economically sustainable basis by communities of individual owners and, in particular,—
a: to allow for the subdivision of land and buildings into unit title developments comprising units that are owned in stratum estate in freehold or stratum estate in leasehold or licence by unit owners, and common property that is owned by the body corporate on behalf of the unit owners; and
b: to create bodies corporate, which comprise all unit owners in a development, to operate and manage unit title developments; and
c: to establish a flexible and responsive regime for the governance of unit title developments; and
d: to protect the integrity of the development as a whole.
4: Overview
1: This Act provides for the following matters: Preliminary provisions
a: Part 1 Creation of unit title developments
b: subparts 1 to 6
i: land and buildings may be subdivided into a unit title development by the deposit of a unit plan by the Registrar-General of Land:
ii: a unit title development consists of separate units and common property (the common property being the remainder of the land (or building) that is for the use of all the unit owners):
iii: units are either principal units or accessory units:
iv: principal units may be places of residence or business (for example, shops) or for other uses:
v: accessory units are designed for use with a principal unit (for example, a garage or car parking space):
vi: the legal title that is created in the units is a different estate from the legal title to the underlying land on which the development is built:
vii: the bundle of legal rights applying to the unit is called a stratum estate:
viii: a principal unit in a unit title development (for example, a building or part of a building) and its accessory unit may be further subdivided to create another unit title development (this creates a layered unit title development ( see section 20 examples 2 and 3 Schedule 1
ix: each unit is assigned an ownership interest and a utility interest and that is relevant to the calculation of many of the unit owner’s rights under the Act:
x: a unit title development may be created in stages, with successive plans deposited by the Registrar-General of Land as the development progresses: Dealings with unit title developments
c: subparts 7 to 11
i: principal units in a unit title development may be bought and sold individually:
ii: accessory units are bought and sold with the principal units to which they relate (although they may be transferred between principal unit owners of the unit title development):
iii: the common property is owned by the body corporate that administers the unit title development, and the unit owners have a beneficial interest:
iv: the body corporate has the ability to deal with the common property in various ways, for example, selling or leasing it or creating easements and covenants affecting it:
v: a unit owner has certain abilities to create easements and covenants relating to that unit: Management structures and arrangements
d: subpart 12
i: each unit title development has a body corporate to administer it:
ii: generally, the owners of units in a unit title development are the members of the body corporate:
iii: the principal unit owners and others have certain rights and responsibilities ( see sections 79 to 81 see sections 84 to 87
iv: there are procedures for meetings of the body corporate and voting at those meetings:
v: the body corporate has operational rules, which are the day-to-day rules of the unit title development: Financial and property management
e: subpart 13
i: the body corporate must have a long-term maintenance plan for the unit title development and must establish various funds to provide for the expenses involved in running the unit title development:
ii: the body corporate has the power to levy the unit owners to establish and maintain the funds:
iii: the body corporate must keep financial statements and must insure the unit title development: Disclosure of information
f: subpart 14
i: the seller of a unit must disclose certain information about the unit title development to a buyer or prospective buyer of the unit:
ii: the original owner of the unit title development (that is, the developer of it) must disclose certain information to the body corporate at the point where the original owner and any associates have sold sufficient units in the development that the original owner and any associates have ceased to have control of 75% of the votes of the body corporate: Special provisions for large unit title developments
fa: Part 2A Special provisions relating to leasehold land
g: Part 3 Disputes
h: subpart 1
i: the Tenancy Tribunal is the dispute resolution body for unit title disputes below a certain monetary amount that do not relate to the title to land:
ii: for disputes that involve higher monetary amounts, the District Court and the High Court have jurisdiction:
iii: if a unit title dispute relates to the title of land, only the High Court has jurisdiction to hear it:
iv: the persons who have standing to bring a case concerning a unit title dispute include principal unit owners or former owners, the body corporate, occupiers of principal units, and service contractors: Cancellation of unit plans
i: subpart 2 Conversion of existing schemes
j: subpart 3 Administration
k: subpart 1 General provisions
l: subparts 2 to 5 ( see also Schedule 1AA
2: This section is by way of explanation only. If a provision of this or any other Act is inconsistent with this section, the other provision prevails. Section 4(1)(fa) heading inserted 9 May 2023 section 45 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 4(1)(fa) inserted 9 May 2023 section 45 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 4(1)(l) amended 30 May 2017 section 9 Regulatory Systems (Building and Housing) Amendment Act 2017
5: Interpretation
1: In this Act, unless the context otherwise requires,— access lot
a: a unit title development; or
b: a unit in a unit title development accessory unit administrator section 141 agreement for sale and purchase section 144 appropriate decision-maker subpart 1 associate of the original owner
a: who is controlled by the original owner or is subject to the original owner's direction or influence; or
b: who is the original owner's agent, trustee, or representative, or acts in any way on behalf of the original owner; or
c: who acts jointly or in concert with the original owner; or
d: who participates in the business activities of the original owner as a consequence of any arrangement or understanding with the original owner; or
e: who would come within any of paragraphs (a) to (d) base land
a: means the parcel of land that is subdivided into a unit title development under section 17 24
b: includes an access lot, or share in an access lot, to which section 55 section 58
c: excludes any land, or share in land, sold under section 56
d: in relation to a subsidiary unit title development, has the meaning given to it in section 19 body corporate section 75 body corporate committee section 112 body corporate manager section 114G body corporate operational rules section 105(2) building elements buyer section 144 car park chairperson chief executive common property
a: all the land and associated fixtures that are part of the unit title development but are not contained in a principal unit, accessory unit, or future development unit; and
b: in the case of a subsidiary unit title development, means that part of the principal unit subdivided to create the subsidiary unit title development that is not contained in a principal unit, accessory unit, or future development unit complete unit plan section 25(3) control period section 6 covenant section 4 department financial statements financial year funds subpart 13 future development unit head body corporate head unit title development
a: means a unit title development created by a subdivision of land where at least 1 of its principal units is subdivided to create a subsidiary unit title development; and
b: in relation to a particular subsidiary unit title development, means the head unit title development of the layered unit title development of which the subsidiary unit title development is a part infrastructure land Land Transfer Act 2017 large unit title development layered unit title development section 19(1) long-term financial and maintenance planning regime long-term maintenance plan section 116 ordinary resolution section 97(4) original owner owner
a: means the person or persons for the time being registered as owner Land Transfer Act 2017
b: in sections 105 124 126 127 163 ownership interest see section 38 parent body corporate parent unit title development principal unit section 7 proceedings proposed accessory unit proposed ownership interest see section 38 proposed principal unit proposed unit development plan section 25(1) redevelopment section 8 registered valuer Valuers Act 1948 Registrar Land Transfer Act 2017 regulations remediation report seller section 144 service contract service contractor settlement date section 144 signage agreement special resolution section 98(4) stage unit plan section 25(2) stand-alone unit standard unit title development example 1 Schedule 1 stratum estate sections 18 22 subsidiary body corporate subsidiary unit title development supplementary record sheet section 47 to register Land Transfer Act 2017 unit unit plan Land Transfer Act 2017
a: a proposed unit development plan:
b: a stage unit plan:
c: a complete unit plan:
d: a unit plan amended in accordance with this Act:
e: a plan that has been or is intended to be deposited in substitution for an existing unit plan unit title development utility interest see section 39
2: In this Act,—
a: a reference to a subdivision of land means a subdivision of a parcel of land under subpart 1 subpart 3
b: a reference to a subdivision of a principal unit means a subdivision of a principal unit and the whole accessory unit (if any) to create a subsidiary unit title development under subpart 2 subpart 3 Section 5(1) access lot replaced 5 December 2013 section 4 Unit Titles Amendment Act 2013 Section 5(1) body corporate manager inserted 9 May 2023 section 4 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 5(1) body corporate operational rules replaced 30 May 2017 section 10(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 5(1) computer register repealed 12 November 2018 section 250 Land Transfer Act 2017 Section 5(1) land amended 12 November 2018 section 250 Land Transfer Act 2017 Section 5(1) large unit title development inserted 9 May 2023 section 4 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 5(1) owner amended 12 November 2018 section 250 Land Transfer Act 2017 Section 5(1) ownership interest inserted 30 May 2017 section 10(2) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 5(1) ownership interest proposed ownership interest repealed 30 May 2017 section 10(2) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 5(1) proposed ownership interest replaced 30 May 2017 section 10(3) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 5(1) Registrar amended 12 November 2018 section 250 Land Transfer Act 2017 Section 5(1) remediation report inserted 9 May 2023 section 4 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 5(1) signage agreement inserted 9 May 2023 section 4 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 5(1) to register amended 12 November 2018 section 250 Land Transfer Act 2017 Section 5(1) unit plan amended 12 November 2018 section 250 Land Transfer Act 2017 Section 5(1) utility interest replaced 30 May 2017 section 10(4) Regulatory Systems (Building and Housing) Amendment Act 2017
6: Meaning of control period
1: In this Act, control period
2: The date referred to in subsection (1) is the day after the last date on which, were a vote of the body corporate to be held, the original owner, or one or more associates of the original owner, or the original owner together with one or more associates of the original owner would be entitled to exercise 75% or more of the votes of the body corporate when the following are taken into account:
a: the—
i: number of principal units owned by the original owner or an associate or associates of the original owner; or
ii: share of the total ownership interest of all units as assigned section 38(1)
b: the—
i: number of principal units where the original owner, or an associate or associates of the original owner, hold proxies to vote; or
ii: share of the total ownership interests of all units where the original owner, or an associate or associates of the original owner, hold proxies to vote:
c: the—
i: number of principal units in respect of which the owners of those units have a contractual obligation to the original owner, or an associate or associates of the original owner, to vote in a particular way; or
ii: share of the total ownership interests in all units in respect of which the owners of units making up that share have a contractual obligation to the original owner, or an associate or associates of the original owner, to vote in a particular way.
3: In subsection (2),—
a: a reference to proxies to vote
b: a reference to a contractual obligation to vote in a particular way Section 6(2)(a)(ii) amended 30 May 2017 section 11 Regulatory Systems (Building and Housing) Amendment Act 2017
7: Meaning of principal unit
1: In this Act, principal unit
a: that is designed for use (whether in conjunction with any accessory unit or not) as a place of residence or business or for any other use of any nature, and that is shown on a unit plan as a principal unit; and
b: that—
i: contains a building or part of a building or is contained in a building (although the unit may or may not be bounded by the physical dimensions of the building); or
ii: is 1 or more car parks.
2: Unless otherwise specified, a reference to a principal unit
3: A reference to a principal unit section 20(2) Section 7(1) replaced 30 May 2017 section 12 Regulatory Systems (Building and Housing) Amendment Act 2017
8: Meaning of redevelopment
1: In this Act, redevelopment
a: the subdivision by sale, transfer, or partition into 2 or more new units (whether or not any new unit is on the same level as any other new unit) of—
i: a unit or units shown on a deposited unit plan; or
ii: a unit or units shown on a deposited unit plan and the whole or part of any stratum or strata formerly forming part of the common property shown on the deposited unit plan; or
b: the enlargement of a unit shown on a deposited unit plan by the inclusion in the unit of any stratum that immediately touches upon that unit and was formerly part of the common property or part of another unit shown on the deposited plan; or
c: the transfer into the common property of a unit or part of a unit; or
d: the erection of 1 or more new units on the common property.
2: Changes that are solely to those parts of a unit title development that are not completed to the extent necessary to obtain a certificate under section 32(2)(a)
9: Meaning of certain expressions in relation to layered unit title developments
1: For the purposes of references in this Act to a unit title development in a layered unit title development being located between, or below, another unit title development, the following provisions apply:
a: subsidiary unit title developments in a layered unit title development are directly related to one another if, were all those subsidiary unit title developments to be cancelled at the same time in accordance with section 181
b: the relationships of between below
2: The following example illustrates the use of the terms between below Example
If— A B C Then— B B C
3: In example 3 Schedule 1
a: the pink unit title development is not directly related to either the yellow or the green unit title developments:
b: the yellow unit title development is located between the green unit title development and the blue unit title development:
c: the yellow unit title development is located below the blue unit title development:
d: the green unit title development is located below the yellow unit title development and the blue unit title development.
9A: Status of examples
1: An example used in this Act is only illustrative of the provisions to which it relates. It does not limit those provisions.
2: If an example and a provision to which it relates are inconsistent, the provision prevails. Section 9A inserted 30 May 2017 section 13 Regulatory Systems (Building and Housing) Amendment Act 2017
9B: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1AA Section 9B inserted 30 May 2017 section 13 Regulatory Systems (Building and Housing) Amendment Act 2017
10: Act binds the Crown
This Act binds the Crown.
11: Application of Act to retirement villages
The following sections of this Act do not apply to a unit title development that is a retirement village registered under the Retirement Villages Act 2003
a: section 74
b: sections 79(g) 80(1)(a)(iv) 81(3) 83(3) 105 106 107
c: sections 115 to 120
d: sections 121 to 129
e: section 132
f: section 133
g: sections 134 to 137
h: section 138
i: sections 144 to 157
j: sections 171 to 176
k: section 206
l: sections 210 to 216
12: Application of Act to timeshare resorts
In relation to timeshare resorts within the meaning of Schedule 2
13: General relationship to Resource Management Act 1991
1: Except as provided in this section and sections 28 29 Resource Management Act 1991
2: Nothing in section 11 Part 10 section 74 subparts 2 3 section 204 1972 No 15 s 2A(1), (2) Section 13 replaced 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023
14: Certain Acts not restricted
Nothing in this Act restricts the Land Act 1948 Te Ture Whenua Maori Act 1993 1972 No 15 s 3(3)
15: Relationship with Public Works Act 1981
1: Nothing in this Act restricts the Public Works Act 1981
2: Nothing in this Act requiring the consent of a body corporate or the making of any other resolution by the body corporate as a prerequisite to the doing of any thing applies in relation to the transfer of an estate or interest in land in a unit title development if the estate or interest in land is acquired by Proclamation Public Works Act 1981
3: Subsection (4) applies if—
a: an estate or interest in land in a unit title development is acquired under the Public Works Act 1981
b: in respect of the transfer of that estate or interest, this Act requires a new unit plan, or an amendment to a unit plan, to be deposited.
4: The authority
5: The Registrar may do anything necessary to give effect to an acquisition under the Public Works Act 1981
6: In this section, a reference to the land in a unit title development Section 15(2) amended 30 May 2017 section 14(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 15(3) replaced 30 May 2017 section 14(2) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 15(4) amended 30 May 2017 section 14(3) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 15(5) amended 30 May 2017 section 14(4) Regulatory Systems (Building and Housing) Amendment Act 2017
2: Unit title developments
1: Subdivision of land to create unit title development
16: Subdivision of land to create unit title development
1: The registered owner
a: an estate in fee simple in a parcel of land under the Land Transfer Act 2017
b: an estate as lessee under a memorandum of lease registered under that Act in respect of a parcel of land:
c: an estate as lessee or licensee under a lease or licence from the Crown registered under that Act in respect of a parcel of land.
2: A parcel of land referred to in subsection (1) may be subdivided into—
a: 2 or more principal units; and
b: the number of accessory units (if any) as the registered owner
c: so much of the land as is not comprised in any unit (in this Act referred to as common property
3: Nothing in this section permits the subdivision in accordance with this Act of a parcel of land that is subleasehold land. 1972 No 15 s 3(1) Section 16(1) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 16(1)(a) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 16(2)(b) amended 12 November 2018 section 250 Land Transfer Act 2017
17: Deposit of plan effects subdivision of land
1: The subdivision of land to provide for units is effected by the deposit under the Land Transfer Act 2017
2: An application to deposit the plan must be made in the prescribed form (if any) by the registered owner section 16(1) 1972 No 15 s 4(1) Section 17(1) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 17(2) amended 12 November 2018 section 250 Land Transfer Act 2017 Stratum estate created when unit plan deposited
18: Stratum estate created in unit
The deposit of a unit plan creates in each principal unit and each accessory unit a stratum estate in freehold or a stratum estate in leasehold or licence, as the case may be, that comprises—
a: the fee simple estate or, as the case may be, the estate as lessee or licensee in the unit determinable in accordance section 74 subpart 2
b: the beneficial interest in the fee simple estate or, as the case may be, the estate as lessee or licensee in the common property of the unit title development to which the owner of the unit is entitled under section 54(2)
c: the undivided share in the fee simple estate or, as the case may be, the estate as lessee or licensee in all the units to which the owner of the unit is contingently entitled under subpart 2 1972 No 15 s 4(2)
2: Subdivision of principal unit to create unit title development: layered developments
19: Meaning of layered unit title development
1: A layered unit title development
a: there is 1 head unit title development; and
b: there is at least 1 subsidiary unit title development.
2: For the purpose of this Act, a reference to the base land
3: Examples 2 and 3 Schedule 1
20: Subdivision of principal unit into subsidiary unit title development
1: The owner of a principal unit may subdivide the principal unit in accordance with this Act to create a subsidiary unit title development.
2: If a principal unit referred to in subsection (1) has an accessory unit and both units are included on the same record of title
3: A principal unit referred to in subsection (1) may be subdivided into—
a: 2 or more principal units; and
b: the number of accessory units (if any) as the owner of the principal unit to be subdivided may wish; and
c: so much of the principal unit as is not comprised in any new unit (in this Act referred to as common property
4: A subdivision referred to in subsection (1) may be done only if the body corporate for the unit title development has, by special resolution, agreed to allow the subdivision.
5: Sections 212 to 216 Section 20(2) amended 12 November 2018 section 250 Land Transfer Act 2017
21: Deposit of plan effects subdivision of principal unit
1: The subdivision of a principal unit to create a subsidiary unit title development is effected by the deposit under the Land Transfer Act 2017
a: identifying the principal unit to be subdivided; and
b: specifying the principal units, accessory units (if any), and common property making up the subsidiary unit title development in their relation to the building or buildings (if any) already erected on the principal unit to be subdivided; and
c: showing the relationship of the proposed subsidiary unit title development to each unit title development in a layered unit title development of which it would, after the subdivision, be a part.
2: The application to deposit the plan must be made by the owner of the principal unit to be subdivided and be—
a: in the prescribed form (if any); and
b: accompanied by a copy of the resolution required by section 20(4)
3: Despite section 216 Section 21(1) amended 12 November 2018 section 250 Land Transfer Act 2017 Stratum estate created when unit plan deposited
22: Deposit of plan effects subdivision of subsidiary unit title development
1: The deposit of a unit plan for a subsidiary unit title development creates in each unit a stratum estate in freehold or a stratum estate in leasehold or licence, as the case may be, derived from the stratum estate in the principal unit subdivided to create the subsidiary unit title development.
2: The stratum estate in each unit comprises—
a: the fee simple estate or, as the case may be, the estate as lessee or licensee in the unit determinable in accordance with section 74 subpart 2
b: the beneficial interest in the fee simple estate or, as the case may be, the estate as lessee or licensee in the common property of the subsidiary unit title development, to which the owner of the unit is entitled under section 54(2)
c: the undivided share in the fee simple estate or, as the case may be, the estate as lessee or licensee in the principal unit subdivided to create the subsidiary unit title development, to which the owner of the unit is contingently entitled under subpart 2
3: The principal unit subdivided to create the subsidiary unit title development remains a principal unit in its unit title development.
3: Creation of unit title development in stages
23: Subdivision may be done in stages
1: A subdivision of a parcel of land under subpart 1 subpart 2
2: Except as provided in this subpart or in any other provision of this Act, all of the provisions of this Act apply to a unit title development created in stages. 1979 No 37 s 3
24: Deposit of plans in stages to create unit title development
1: If land or a principal unit is to be subdivided in stages, this section and section 25 sections 17(1) 21(1)(b)
2: Subdivision in stages is effected by the successive deposit under the Land Transfer Act 2017
a: a proposed unit development plan and a first stage unit plan together; and
b: 1 or more further stage unit plans (if any); and
c: a complete unit plan.
3: In the case of subdivision of land, the applications to deposit the plans must be made by the registered owner section 16(1)
4: In the case of the subdivision of a principal unit to create a subsidiary unit title development, the applications to deposit the plans must be made by the owner of the principal unit to be subdivided in the prescribed form (if any). Section 24(2) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 24(3) amended 12 November 2018 section 250 Land Transfer Act 2017
25: Requirements for plans deposited in stages
1: A proposed unit development plan required by section 24(2)
2: A stage unit plan required by section 24(2)
a: each unit and each part of the common property (if any) that has so far been completed to the extent necessary for the purposes of section 32(2)(a)
b: the balance as 1 or more future development units.
3: A complete unit plan required by section 24(2)
4: Every stage unit plan (except the first) and the complete unit plan relating to a development must be deposited in substitution for the stage unit plan previously deposited in respect of that development.
5: No stage unit plan and no complete unit plan may be deposited unless the certificate given under section 32(2)(a)
26: Grounds for principal administrative officer’s refusal to give certificate in staged development
For the purposes of section 35(b) and (c) district plan requirements applied at the date on which approval of the proposed unit development plan under section 223 1979 No 37 s 6(3) Section 26 amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023
27: Future development units
1: The deposit of the first stage unit plan under section 24(2)(a)
2: Those estates are made up of—
a: the fee simple estate or the estate as lessee or licensee (as the case may be) in the unit, which determines,—
i: on the deposit of a unit plan that specifies as other than a future development unit, that part of the base land or principal unit (as the case may be) that formerly made up the future development unit; or
ii: on the cancellation of a stage unit plan, in accordance with subpart 2
b: the undivided share in the fee simple estate or the estate as lessee or licensee (as the case may be) in all the units to which the owner of the unit is contingently entitled by virtue of subpart 2 1979 No 37 s 8(1)
28: Application of
Resource Management Act 1991
1: Nothing in section 11 Part 10
a: the requirement to obtain a certificate under section 224(c) section 29 section 224(c)
b: the requirement to comply with section 224(e)
2: Section 11 Part 10 section 224(c)
3: For the avoidance of doubt, the certificate required to be obtained under section 224(c)
a: the proposed unit development plan; or
b: each stage unit plan and the complete unit plan.
4: The reference in section 224(c) 1972 No 15 s 2A Section 28 heading amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 28(1) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 28(1)(a) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 28(1)(b) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 28(2) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 28(3) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 28(4) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023
29: Stage unit plan or complete unit plan and certificate under
section 224(c) of Resource Management Act 1991
1: Unless a condition of the subdivision consent for a stage unit plan or a complete unit plan requires otherwise, a certificate issued by a territorial authority under section 224(c)
a: the conditions specified in the subdivision consent that are relevant to that stage of the subdivision consent have been complied with to the satisfaction of the territorial authority; or
b: in respect of conditions that have not been complied with,—
i: the conditions specified in the subdivision consent are not relevant to that stage and therefore do not need to be complied with; or
ii: if the conditions specified in the subdivision consent that are relevant to that stage of the subdivision consent have not been complied with, the provisions of section 224(c)(i), (ii), and (iii)
2: If subsection (1)(b)(ii) applies, a territorial authority may issue a certificate under section 224(c) Section 29 heading amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 29(1) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 29(1)(b)(ii) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 29(2) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023
30: Alteration of proposed unit development plan
1: This section applies to any alteration to a proposed unit development plan other than one—
a: required under section 57 59
b: required in relation to a redevelopment under subpart 10
2: The body corporate may, by special resolution, agree to make an application to deposit a substituted proposed unit development plan.
3: The body corporate must apply to the Registrar for the deposit of a new proposed unit development plan in substitution for the existing proposed unit development plan.
4: Sections 212 to 216
5: Before making the application to deposit the new plan, the body corporate must (in addition to complying with section 213(1)
a: serve a copy of the draft application on—
i: every unit owner; and
ii: every other person who has a registered interest in any unit or a caveat or notice of claim entered on the register over any unit; and
b: if the existing unit plan relates to a stratum estate in leasehold or licence, obtain the written consent of the lessor or licensor to the redevelopment.
6: The new proposed unit development plan must—
a: specify all the units and the whole of the common property proposed to comprise the unit title development; and
b: in addition, show, to the satisfaction of the Registrar, the modifications to the unit plan being replaced.
7: In addition to the provisions referred to in section 31(2)(a) sections 32(2)(a) and (b) 35 to 37
8: In addition to the matters required to be included in the certificate referred to in section 216 Section 30(1)(b) amended 5 December 2013 section 5 Unit Titles Amendment Act 2013
4: Requirements relating to unit plans
31: Application of this subpart
1: The whole of this subpart applies to a unit plan to be deposited under any of sections 17 21 24 subpart 3
2: In relation to any unit plan other than one referred to in subsection (1),—
a: sections 32(2)(c) 33(3) 34
b: provisions of this subpart other than those referred to in paragraph (a) apply if expressly provided elsewhere in this Part.
32: Restrictions on deposit of unit plans
1: A unit plan for the subdivision of land must not be deposited—
a: while the record of title to any land to which it relates is limited in any manner referred to in subpart 4
b: while the land to which it relates is held in more than 1 record of title created under the Land Transfer Act 2017
c: unless the land to which it relates is the whole of the land in a record of title created under the Land Transfer Act 2017
d: unless the grantor of the lease or licence, if the land is held under a lease or licence, the registered owner of any mortgage, encumbrance, or charge affecting the land or any part of it, and every caveator whose caveat against the land was lodged with the Registrar before deposit of the plan, have consented in writing to its being deposited.
2: A unit plan for the subdivision of land or for the subdivision of a principal unit must not be deposited—
a: unless a certificate in the prescribed form has been given in writing by an authorised officer of the territorial authority in whose district the land is situated to the effect that—
i: every building (if any) shown on the plan has been erected, and all other development work has been carried out, to the extent necessary to enable all the boundaries of every unit and the common property shown on the plan to be physically measured; and
ii: every principal unit shown on the plan conforms to the definition of principal unit in section 7
b: unless a certificate in the prescribed form has been given in writing by a registered valuer showing the ownership interest or proposed ownership interest assessed under section 38(2)
c: until it has been approved in accordance with section 9
3: In addition to the restrictions in subsection (2), a unit plan for the subdivision of a principal unit must not be deposited—
a: unless the registered owner of any mortgage, encumbrance, or charge affecting the principal unit and every caveator whose caveat against the principal unit was lodged with the Registrar before deposit of the plan, have consented in writing to its being deposited.
b: 1972 No 15 s 5 Section 32(1)(a) replaced 12 November 2018 section 250 Land Transfer Act 2017 Section 32(1)(b) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 32(1)(c) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 32(2)(b) amended 30 May 2017 section 15(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 32(3)(b) repealed 30 May 2017 section 15(2) Regulatory Systems (Building and Housing) Amendment Act 2017
33: Further provisions relating to restrictions on deposit of unit plans
1: Section 32(1)(b) and (c) record of title
2: A consent for the purposes of section 32(1)(d) or (3)(a)
3: Approval in accordance with section 32(2)(c) Section 33(1) amended 12 November 2018 section 250 Land Transfer Act 2017
34: Unit plan must comply with survey requirements
A unit plan must comply with the provisions of rules made under section 49 1972 No 15 s 4(1)
35: Grounds for authorised officer's refusal to give certificate
An authorised officer of a territorial authority must not refuse to give a certificate in respect of any unit plan under section 32(2)(a)
a: that any building shown on the plan has not been erected, or that any other development work has not been carried out, to the extent necessary to enable all the boundaries of every unit and the common property shown on the plan to be physically measured:
b: that any building on the land has been erected in such a place in relation to any boundary, or to a height, so as to contravene the requirements of the territorial authority's district plan
c: that any building or any other part of the whole development contravenes the requirements of the territorial authority's district plan 1972 No 15 s 5A(1) 1979 No 37 s 6(3) Section 35(b) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 35(c) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023
36: Territorial authority cannot require alterations once certificate given
1: This section applies if—
a: an authorised officer of a territorial authority has given a certificate in respect of any unit plan under section 32(2)(a)
b: that plan has been deposited.
2: The territorial authority has no power to require any alteration to any building or any other part of the whole development that may affect the location or the boundaries of any unit or of any part of the common property shown on the plan.
3: The territorial authority may otherwise pursue any remedies it may have (including the prosecution of any person) in respect of any non-compliance with the provision of its district plan or the requirements of the Resource Management Act 1991
4: Subsection (2) applies despite any enactment or rule of law to the contrary. 1972 No 15 s 5A(2) Section 36(3) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023
37: Protection of territorial authority, etc, from liability for issuing of certificate
No territorial authority, authorised officer of a territorial authority, member of a territorial authority, or employee or agent of a territorial authority, is subject to civil or criminal liability in respect of the giving of a certificate under section 32(2)(a) 1972 No 15 s 5A(3)
5: Ownership interest and utility interest
38: Ownership interest
1: Before a unit plan is deposited under section 17(1) 21(1) 24(2)(a)
a: an ownership interest to every principal unit and every accessory unit; and
b: a proposed ownership interest to every proposed principal unit and every proposed accessory unit.
2: The ownership interest or proposed ownership interest assigned to a unit is that assessed by a registered valuer on the basis of the value of the unit relative to each other unit and shown on the documentation required to be lodged—
a: with the unit plan (in the case of a unit plan deposited under section 17(1) 21(1)
b: with the proposed unit development plan (in the case of a stage unit plan or complete unit plan deposited under section 24(2)
3: The ownership interest is used to determine a range of matters, including, but not limited to,—
a: the beneficial interest of the owner of the principal unit in the common property:
b: the share of the owner of the principal unit in the value of any buildings, fixtures, and other improvements in relation to leasehold land:
c: the voting rights of the owner of the principal unit when a poll is requested under section 99
d: the share of the owner of the principal unit in the underlying fee simple in the land on the cancellation of the unit plan:
e: the extent of the obligation of the owner of the principal unit in respect of contributions levied by the body corporate under section 121
f: the rights of the owner of the principal unit in relation to a distribution of any surplus money of a capital improvement fund under section 131
g: the extent of the obligation of the owner of the principal unit for payment of ground rental under section 87
h: the extent of the liability of the owner of the principal unit for damages and costs under section 142
4: The proposed ownership interest for a future development unit is the total of all the proposed ownership interests of the proposed principal units and proposed accessory units in the future development unit assigned under subsection (1)(b).
5: The proposed ownership interest is used to determine the same range of matters described in subsection (3) in so far as they apply to an owner of a future development unit.
6: After a unit plan is deposited, the ownership interest or proposed ownership interest of a unit may be reassessed, and the new interest assigned to the unit, as set out in this Act. Section 38(1) replaced 30 May 2017 section 16(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 38(2) replaced 30 May 2017 section 16(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 38(6) replaced 30 May 2017 section 16(2) Regulatory Systems (Building and Housing) Amendment Act 2017
39: Utility interest (other than for future development units)
1: Before a unit plan is deposited under section 17(1) 21(1) 24(2)(a)
2: The utility interest assigned to a unit is the same as the ownership interest assessed for the unit under section 38(2)
2A: Alternatively, the registered proprietor or owner may assign to a unit a different utility interest if that different utility interest is—
a: fair and equitable, in the view of the registered proprietor or owner, having regard to the relevant benefits and the costs to units; and
b: shown on the documentation lodged with the unit plan.
2B: A utility interest assignment for the purposes of subsection (2A) may be—
a: a single uniform interest; or
b: a multiple set of interests,—
i: each targeted at a particular service or amenity; and
ii: which may be, for a specific interest targeted at a particular service or amenity, assigned to some units only.
3: The utility interest is used to determine a range of matters including, but not limited to,—
a: the extent of the obligation of the owner of the principal unit in respect of contributions levied by the body corporate under section 121
b: the rights of the owner of the principal unit in relation to a distribution of any surplus money in the long-term maintenance fund, the optional contingency fund, or the operating account, or personal property of the body corporate under section 131 Section 39(1) replaced 30 May 2017 section 17 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 39(2) replaced 30 May 2017 section 17 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 39(2A) inserted 30 May 2017 section 17 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 39(2B) inserted 9 May 2023 section 5 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
40: Utility interest for future development unit
1: As soon as a future development unit is in use as a place of residence or business or otherwise, the registered proprietor, owner, or body corporate (as the case may be) must assign a deemed utility interest to that unit.
2: The deemed utility interest assigned to the future development unit is the total of all the proposed ownership interests assigned to the proposed principal units and proposed accessory units in the future development unit under section 38
2A: Alternatively, the body corporate (if any) may assess and assign the first deemed utility interest for a future development unit by special resolution at a general meeting under section 41
2B: A deemed utility interest assignment for the purposes of subsection (2A) may be—
a: a single uniform interest; or
b: a multiple set of interests,—
i: each targeted at a particular service or amenity; and
ii: which may be, for a specific interest targeted at a particular service or amenity, assigned to some units only.
3: The deemed utility interest is used to determine the extent of the future development unit’s owner’s obligations in respect of contributions relating to the funds levied by the body corporate under section 121 Section 40(1) replaced 30 May 2017 section 18 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 40(2) replaced 30 May 2017 section 18 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 40(2A) inserted 30 May 2017 section 18 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 40(2B) inserted 9 May 2023 section 6 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Reassessment Heading inserted 30 May 2017 section 19 Regulatory Systems (Building and Housing) Amendment Act 2017
41: Reassessment of ownership interest and utility interest
1: A body corporate may, by special resolution at a general meeting, decide to reassess the ownership interest or utility interest, or both, for each unit and assign to each unit the new interest or interests.
2:
3: However, a decision by the body corporate under subsection (1) may be made only if—
a: at least 36 months have passed—
i: since the date of deposit of the unit plan; and
ii: since the effective date of the last reassessment (if any) of the relevant interest or interests; or
b: the reassessment is for the purpose of the deposit of a unit plan to subdivide a unit in the unit title development to create a subsidiary unit title development.
3A: Subsections (1) and (3) do not prevent an assessment or a reassessment, and the subsequent assignment of the new interest or interests, under another section of this Act ( see section 177
4: A reassessment under subsection (1) takes effect, and the new interest or interests are assigned to each unit, on—
a: the date determined as part of the special resolution under subsection (1); or
b: the date of the valuer’s assessment; or
c: if there are 2 dates (1 under paragraph (a) and 1 under paragraph (b)), the earlier date.
5: Any reassessment of the ownership interest of a unit must be made by a registered valuer assessing the value of each of the units relative to each other.
5A: A reassessment of the utility interests
5B: A reassessment of the utility interests made by a body corporate created before the commencement of the Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
a: a single uniform interest; or
b: a multiple set of interests,—
i: each targeted at a particular service or amenity; and
ii: which may be, for a specific interest targeted at a particular service or amenity, assigned to some units only.
6: If, as a result of a reassessment, utility interests are of the utility interests
7: Sections 212 to 216
8: Any costs incurred in the reassessment must be paid for by the body corporate.
9: In this section and section 42
a: a reference to ownership interest
b: a reference to utility interest Section 41(1) replaced 30 May 2017 section 20(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 41(2) repealed 30 May 2017 section 20(2) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 41(3) replaced 30 May 2017 section 20(3) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 41(3A) inserted 30 May 2017 section 20(3) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 41(4) replaced 30 May 2017 section 20(3) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 41(5) replaced 30 May 2017 section 20(3) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 41(5A) inserted 30 May 2017 section 20(3) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 41(5A) amended 9 May 2023 section 7(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 41(5B) inserted 9 May 2023 section 7(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 41(6) replaced 30 May 2017 section 20(3) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 41(6) amended 9 May 2023 section 7(3)(a) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 41(6) amended 9 May 2023 section 7(3)(b) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
42: Registrar to be notified of reassessment
1: The body corporate must notify the Registrar in the prescribed form (if any) of any reassessment of the ownership interest or the utility interest under section 41
2: The Registrar must record the new ownership interest or utility interest, or both, assigned to each unit. Section 42(2) replaced 30 May 2017 section 21 Regulatory Systems (Building and Housing) Amendment Act 2017
6: Records of title Subpart 6 heading amended 12 November 2018 section 250 Land Transfer Act 2017
43: Creation of
records of title
1: On the deposit of a unit plan for the subdivision of land, the Registrar must—
a: create a record of title in the name of the registered owner
b: cancel the existing record of title
c: in a case where the unit plan relates to an estate as lessee or licensee under a registered lease or licence of any land, note an appropriate memorial on the record of title
2: Despite subsection (1)(a), the Registrar must, at the request of the registered owner record of title
3: A record of title 1972 No 15 s 8 Section 43 heading amended 12 November 2018 section 250 Land Transfer Act 2017 Section 43(1)(a) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 43(1)(b) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 43(1)(c) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 43(2) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 43(3) amended 12 November 2018 section 250 Land Transfer Act 2017
44: Creation of
record of title
1: On the deposit of a unit plan for the subdivision of a principal unit, the Registrar must—
a: create a record of title
b: cancel the existing record of title
2: Despite subsection (1)(a), the Registrar must, at the request of the owner of the principal unit that has been subdivided, create a separate record of title
3: A record of title Section 44 heading amended 12 November 2018 section 250 Land Transfer Act 2017 Section 44(1)(a) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 44(1)(b) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 44(2) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 44(3) amended 12 November 2018 section 250 Land Transfer Act 2017
45: No
records of title Despite section 76
a: the fee simple estate or, as the case may be, the interest as lessee or licensee in the base land or any part of the base land; or
b: the stratum estate in a principal unit that has been subdivided to create a subsidiary unit title development; or
c: any component part of a stratum estate as described in sections 18 22(2) 1972 No 15 s 4(4) Section 45 heading amended 12 November 2018 section 250 Land Transfer Act 2017 Section 45 amended 12 November 2018 section 250 Land Transfer Act 2017
46: No
record of title No record of title 1972 No 15 s 4(4) Section 46 heading amended 12 November 2018 section 250 Land Transfer Act 2017 Section 46 amended 12 November 2018 section 250 Land Transfer Act 2017
47: Supplementary record sheets
On the deposit of a unit plan under subpart 1 2 section 24(2)(a)
a: that the body corporate owns the common property; and
b: that the owners of all the units are beneficially entitled to the common property as tenants in common in shares proportional to the ownership interest (or proposed ownership interest) in respect of their respective units; and
c: appropriate memorials relating to—
i: all instruments that are registered and that affect the whole or any part of the base land and the common property (independently of the units) to which the unit plan relates; and
ii: all other matters that, in accordance with this Act, the regulations, and any other Act, have to be noted on the supplementary record sheet. 1972 No 15 s 20(1), (2)
48: Noting of subsidiary unit title development
On the deposit of a unit plan for the subdivision of a principal unit under subpart 2 section 24(2)(a)
a: note the subsidiary unit title development on the supplementary record sheet for each unit title development in the layered unit title development of which it is a part
b: Section 48(a) amended 30 May 2017 section 22(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 48(b) repealed 30 May 2017 section 22(2) Regulatory Systems (Building and Housing) Amendment Act 2017
49: New unit plans
In any case where, under any of the provisions of section 30 57 59 68 Land Transfer Act 2017
a: the plan deposited must be noted so as to show clearly that it is in substitution for the earlier plan:
b: where any unit is described in any record of title 1972 No 15 s 20(3), (4)(a) Section 49 amended 12 November 2018 section 250 Land Transfer Act 2017 Section 49(b) amended 12 November 2018 section 250 Land Transfer Act 2017
7: General provisions relating to dealings with unit title developments
50: Ways in which stratum estate and base land may be dealt with
On the creation of a stratum estate in a unit,—
a: that stratum estate may devolve or be transferred, leased, mortgaged, or settled:
b: except as provided in this or any other Act, the component parts of the stratum estate are not capable of devolving or being dealt with independently of the others:
c: the fee simple estate or, as the case may be, the interest as lessee or licensee in the base land, or any part of the base land, is not capable of devolving or being dealt with except as provided in this or any other Act. 1972 No 15 s 4(3)
51: Dealings with subsidiary unit title development
On the creation of a stratum estate in a unit in a subsidiary unit title development, the principal unit that was subdivided to create the development is not capable of devolving or being dealt with except as provided in this or any other Act.
52: Effect of transfer, lease, etc, of stratum estate
A transfer, lease, mortgage, or settlement of a stratum estate in a unit has the same effect as if the stratum estate were an estate in fee simple in land or an interest in land under a lease or licence, as the case may be. 1972 No 15 s 4(3)
53: Independent dealings with accessory units restricted
1: Except where it is transferred to the owner of a principal unit shown on the same unit plan, no accessory unit or any interest in it may be sold, leased, mortgaged, or otherwise disposed of or dealt with except as part of a sale, lease, mortgage, disposition, or other dealing that includes a principal unit or a corresponding interest in a principal unit.
2: No record of title record of title
3: No principal unit that is for the time being included in the same record of title record of title section 200(1)(b)
a: as part of a sale, lease, mortgage, disposition, or dealing that includes the accessory unit or a corresponding interest in the accessory unit, as the case may be; or
b: if there is a concurrent sale of the accessory unit in accordance with subsection (1).
4: If an accessory unit is being transferred independently of a principal unit to a person who is the owner of a principal unit shown on the same unit plan, the instrument of transfer in respect of the accessory unit must contain a request to the Registrar for the accessory unit to be included in the record of title
5: On the registration of the instrument of transfer referred to in subsection (4), the accessory unit becomes subject to all mortgages and charges and other registered interests or caveats or notices of claim to which the principal unit is subject.
6: If an accessory unit is for the time being included in the same record of title
7: Despite anything to the contrary in the Land Transfer Act 2017
8: Nothing in subsection (7) affects the devolution of any unit on the death of the owner of the unit to the administrator of that owner. 1972 No 15 s 10 Section 53(2) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 53(3) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 53(4) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 53(6) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 53(7) amended 12 November 2018 section 250 Land Transfer Act 2017
8: Ownership of, and dealings with, common property
54: Ownership of common property
1: The common property is owned by the body corporate.
2: The owners of all the units are beneficially entitled to the common property as tenants in common in shares proportional to the ownership interest (or proposed ownership interest) in respect of their respective units.
3: Nothing in subsection (2) affects the interests among themselves of the owners of an individual unit.
55: Access lots
1: This section applies if—
a: the base land to which a unit plan relates has an access lot associated with it; and
b: a share of the access lot is owned by the person who is, immediately before the unit plan is deposited, the registered owner
2: On the deposit of the unit plan, the access lot, or share of the access lot, owned by the registered owner Section 55(1)(a) replaced 5 December 2013 section 7 Unit Titles Amendment Act 2013 Section 55(1)(b) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 55(2) amended 12 November 2018 section 250 Land Transfer Act 2017
56: Sale, lease, or licence of common property
1: The body corporate may, after a special resolution to do so, grant a lease or licence over the whole or any
2: Before granting a lease or licence over the whole or any
a: the body corporate for its parent unit title development; and
b: the body corporate for any unit title development located between the subsidiary unit title development and its head unit title development; and
c: the body corporate for its head unit title development.
3: A body corporate, other than a subsidiary body corporate, may, after a special resolution to do so, sell the whole or any
4: Sections 212 to 216
5: In addition to the matters required to be included in the certificate referred to in section 216
6: Unless the body corporate resolves otherwise, any proceeds obtained by the body corporate as a result of any sale, lease, or licence of or over the common property must be distributed to the unit owners.
7: Proceeds distributed to the unit owners under subsection (6) must be distributed in shares proportional to their ownership interest (including any proposed ownership interest) as at the date that the payment giving rise to the proceeds fell due under the terms of the sale, lease, or licence.
8: Without limiting subsection (6), the body corporate may, with the consent of the owner of a principal unit, offset the payment to that owner against current or future levies payable in respect of that owner’s principal unit.
9: For the purposes of any sale of common property, the owner of a future development unit that is in use as a place of residence or business or otherwise, in whole or in part, is to be treated as a member of the body corporate. Section 56(1) amended 5 December 2013 section 8(1) Unit Titles Amendment Act 2013 Section 56(2) amended 5 December 2013 section 8(1) Unit Titles Amendment Act 2013 Section 56(3) amended 5 December 2013 section 8(2) Unit Titles Amendment Act 2013 Section 56(7) replaced 30 May 2017 section 23 Regulatory Systems (Building and Housing) Amendment Act 2017
57: Registration of transfers of common property
1: The instrument of transfer of the whole or any part or parts of the common property must, when lodged for registration, be accompanied by a new unit plan in substitution for the existing unit plan.
2: The requirements of subsection (1) are in addition to any plan that the Registrar may require to be deposited under section 224
3: If a unit plan referred to in this section includes a stage unit plan,—
a: the reference to the unit plan includes both the stage unit plan and proposed unit development plan; and
b: both plans must be prepared, approved, and deposited in accordance with this section.
4: The new unit plan must show the effect of the transfer to the satisfaction of the Registrar.
5: The Registrar must register any transfer to which subsection (1) refers by—
a: noting a memorial of the transfer on the supplementary record sheet and any other appropriate record; and
b: creating in the name of the transferee a record of title section 73
6: Nothing in this section restricts section 47 1972 No 15 s 18 Section 57(2) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 57(5)(b) amended 12 November 2018 section 250 Land Transfer Act 2017
58: Additions to common property
1: An interest in land outside the base land may be transferred to the body corporate (other than a subsidiary body corporate) and included in the common property if—
a: the body corporate has by special resolution resolved to acquire the interest in land; and
b: the interest in land is transferred free from any registered mortgage, encumbrance, charge, lease, or sublease; and
c: either,—
i: in a case where a stratum estate in freehold exists in the units shown on the plan, the transfer is of an estate in fee simple in the land to which it relates; or
ii: in a case where a stratum estate in leasehold or licence exists in the units shown on the plan, the transfer is of an estate as lessee or licensee in the land to which it relates under a lease or licence from the grantor of the lease or licence of the base land.
2: The lease or licence referred to in subsection (1)(c)(ii) must be a lease or licence for the same remaining period, on the same terms and conditions, and containing the same provisions as the current lease or licence of the base land.
3: Sections 212 to 216
4: For the purpose of this section, the owner of a future development unit that is in use as a place of residence or business or otherwise, in whole or in part, is to be treated as a member of the body corporate.
59: Registration of additions to common property
1: Every instrument of transfer to which section 58
2: If a unit plan referred to in this section includes a stage unit plan,—
a: the reference to the unit plan includes both the stage unit plan and proposed unit development plan; and
b: both plans must be prepared, approved, and deposited in accordance with this section.
3: The new unit plan must show the effect of the transfer to the satisfaction of the Registrar.
4: The registration of a transfer under this section has the effect of including the transferred land as part of the common property.
5: The Registrar must register any transfer to which subsection (1) refers by—
a: entering a memorial of the transfer on the relevant record of title
b: noting a memorial of the transfer on the supplementary record sheet.
6: The beneficial interest (under section 54(2)
a: subject to the same terms, conditions, liabilities, and interests as those on or subject to which the owner held the unit immediately before the registration of the transfer; and
b: subject to any instrument of mortgage, encumbrance, charge, lease, or sublease affecting the owner's unit as if the beneficial interest in the transferred land had been included in the instrument expressly.
7: Nothing in this section restricts section 47 Section 59(5)(a) amended 12 November 2018 Land Transfer Act 2017
9: Easements and covenants
Existing easements and covenants affecting base land
60: Existing easements and covenants affecting base land
1: The deposit of a unit plan has no effect on any easement or covenant to which the base land is subject or on any easement or covenant that is appurtenant to the base land.
2: The record of title section 43
3: If there is a layered unit title development on the base land, the supplementary record sheet referred to in subsection (2) is that for the head unit title development and any subsidiary unit title development affected by the easement or covenant 1972 No 15 s 7 Section 60(2) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 60(3) amended 5 December 2013 section 9 Unit Titles Amendment Act 2013
61: Dealings with easements and covenants existing before deposit of unit plan
1: The body corporate of a standard unit title development or the body corporate of a head unit title development may, after a special resolution to do so, vary, surrender, or assign any easement or vary or revoke any covenant to which section 60
2: For the purpose of sections 73 108 to 112 116 registered owner Section 61(2) amended 12 November 2018 section 250 Land Transfer Act 2017 Creation of new easements and covenants
62: Powers of body corporate in respect of easements and covenants over or for benefit of common property
1: The body corporate may, after a special resolution to do so, grant an easement or enter into a covenant over the whole or any part of the common property.
2: The body corporate may, after a special resolution to do so, over any unit or any land that is not common property,—
a: acquire an easement for the benefit of the common property; or
b: enter into a covenant for the benefit of common property.
3: The body corporate may, after a special resolution to do so, enter into a variation or surrender of—
a: an easement or covenant over any unit or any land that is not common property for the benefit of the common property; or
b: an easement or covenant over the common property
4: Before dealing with common property under subsection (1), (2), or (3), a subsidiary body corporate must obtain the consent to the dealing by special resolution from—
a: the body corporate for its parent unit title development; and
b: the body corporate for any unit title development located between the subsidiary unit title development and its head unit title development; and
c: the body corporate for its head unit title development.
5: Sections 212 to 216
6: In addition to the matters required to be included in the certificate referred to in section 216
7: Unless the body corporate resolves otherwise, any proceeds obtained by the body corporate as a result of any dealing with common property under subsections (1), (2), and (3) must be distributed to the unit owners.
8: Proceeds distributed to the unit owners under subsection (7) must be distributed in shares proportional to what was, at the time of the dealing, their ownership interest (including any proposed ownership interest). Section 62(1) replaced 30 May 2017 section 25(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 62(3)(b) amended 30 May 2017 section 25(2) Regulatory Systems (Building and Housing) Amendment Act 2017
63: Ability of owner of unit in respect of easements and covenants
1: The owner of a unit may, for the benefit of the unit,—
a: acquire an easement over other land; or
b: acquire the benefit of a covenant over other land.
2: The owner of a unit may
a: grant an easement over the unit; or
b: enter into a covenant over the unit.
3: The owner of a unit may enter into a variation or surrender of—
a: an easement or covenant over other land for the benefit of the unit; or
b: an easement or covenant over the unit
4: Before any dealing with the unit under subsection (1), (2), or (3), the body corporate must, by special resolution, have consented to the granting, acquiring, variation, or surrender of the easement or covenant.
5: Before giving its consent in accordance with subsection (4), a subsidiary body corporate must obtain the consent by special resolution, and in writing, to the granting, acquiring, variation, or surrender of the easement or covenant from—
a: the body corporate for its parent unit title development; and
b: the body corporate for any unit title development located between the subsidiary unit title development and its head unit title development; and
c: the body corporate for its head unit title development.
6: An application to register an instrument to give effect to any of the matters in subsections (1), (2), or (3) must be accompanied by a certificate by the body corporate that the consent required under subsection (4) has been given.
7: The certificate referred to in subsection (6) may be relied on by the Registrar as sufficient evidence of compliance with the matters set out in the certificate. Section 63(2) amended 30 May 2017 section 26(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 63(3)(b) amended 30 May 2017 section 26(2) Regulatory Systems (Building and Housing) Amendment Act 2017
10: Redevelopments
References to unit plan in relation to redevelopments
64: References to unit plan in relation to redevelopments
If a unit plan referred to in sections 65 to 71
a: the reference to the unit plan includes both the stage unit plan and proposed unit development plan; and
b: both plans, or amendments to both plans, as the case may be, must be prepared, approved, and deposited in accordance with the applicable provisions of sections 65 to 71 Redevelopment requiring amendment to unit plan
65: Redevelopment requiring amendment to unit plan
1: This section applies if a redevelopment consists solely of the adjustment of the boundary between 1 or more units shown on a unit plan but the adjustment does not—
a: affect the common property; or
b: materially affect the use, enjoyment, or ownership interest of any unit the boundary of which is not being adjusted; or
c: change the number of units.
2: The owners of the units that will have their boundaries adjusted must, jointly, make an application to the Registrar for the deposit of an amendment to the unit plan.
3: Sections 32(2)(a) and (c) 33(3) 34 to 37
4: Before making the application to deposit the amendment to the unit plan the unit owners in subsection (2) must obtain a certificate from the body corporate that the redevelopment is of a kind described in subsection (1).
5: The unit owners in subsection (2) must, for the purposes of obtaining the certificate referred to in subsection (4), provide sufficient written information to the body corporate to fully inform it of the nature of the redevelopment. Section 65(1) replaced 30 May 2017 section 27 Regulatory Systems (Building and Housing) Amendment Act 2017
66: Requirements for amendment to unit plan under section 65
The amendment to the unit plan required by section 65
a: define the boundaries of the enlarged or reduced units; and
b: show any enlarged or reduced unit marked with numbers or letters not already used on the unit plan; and
c: specify which of the enlarged units and reduced units are principal units and which are accessory units; and
d: comply with the provisions of rules made under section 49
67: Deposit of amendment to unit plan
1: The application to deposit the amendment to the unit plan required by section 65
a: the certificate described in section 65(4)
b: a certificate from a registered valuer—
i: showing the ownership interest assessed for
ii: stating that the amendment to the unit plan does not affect the ownership interest of any unit the boundary of which is not being adjusted.
2: The certificate referred to in subsection (1)(a) may be relied on by the Registrar as sufficient evidence of the matters set out in it.
3: On the deposit of the amendment to the unit plan and the registration of any transfers or other instruments, the Registrar must—
a: cancel the existing records of title
b: create separate records of title
c: enter a reference to the amended unit plan on the supplementary record sheet. Section 67(1)(b)(i) amended 30 May 2017 section 28 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 67(3)(a) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 67(3)(b) amended 12 November 2018 section 250 Land Transfer Act 2017 Redevelopment requiring new unit plan
68: Redevelopment requiring new unit plan
1: This section applies to any redevelopment other than one to which section 65
2: The body corporate must apply to the Registrar for the deposit of a new unit plan in substitution for the existing unit plan.
3: Before making the application to deposit the new unit plan, the body corporate must—
a: ensure that all of the owners of the units materially affected by the redevelopment have consented in writing to the new unit plan; and
b: if the existing unit plan relates to a stratum estate in leasehold or licence, obtain the written consent of the lessor or licensor to the redevelopment; and
c: agree, by special resolution, to the new unit plan.
4: For the purpose of this section, an owner of a future development unit that is in use as a place of residence or business or otherwise, in whole or in part, as a principal unit is to be treated as a member of the body corporate.
5: Sections 212 to 216 1972 No 15 s 44(1)
69: Requirements for new unit plan under section 68
1: A new unit plan required under section 68
a: define the boundaries of the new units or the enlarged or reduced units:
b: show all new units and any enlarged or reduced units marked with numbers or letters not already used on the existing unit plan:
c: specify which of the new units, enlarged units, and reduced units are principal units and which are accessory units.
2: In addition to the provisions referred to in section 31(2)(a) sections 32(2)(a) 35 to 37
3: The application to deposit the plan must be accompanied by a certificate from a registered valuer,—
a: in the case of a subdivision into 2 or more new units, enlarged units, or reduced units, showing the ownership interest of the former unit or units included in the redevelopment apportioned among the new units; and
b: in the case where a redevelopment involves the inclusion in a unit of part of the common property, the transfer into the common property of a unit or part of a unit, or the erection of 1 or more units on the common property, showing the ownership interests reassessed for
4: A reassessment of ownership interests for the purpose of subsection (3)(b) must be made by the registered valuer assessing the value of each of the units relative to each other.
5: Despite subsection (4), the registered valuer may, in his or her discretion, assess
5A: The body corporate must assign the reassessed ownership interests to the relevant units.
6: In addition to the matters required to be included in the certificate referred to in section 216 section 68(3)(a) and (b) 1972 No 15 s 44(2), (3) Section 69(3)(b) amended 30 May 2017 section 29(2) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 69(4) replaced 30 May 2017 section 29(3) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 69(5) amended 30 May 2017 section 29(4) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 69(5A) inserted 30 May 2017 section 29(5) Regulatory Systems (Building and Housing) Amendment Act 2017
70: Reassessment of utility interests
1: This section applies if, immediately before a redevelopment to which sections 68 69 section 41
2: The body corporate must—
a: reassess the utility interest of the unit in accordance with the requirements of section 41
b: notify the Registrar under section 42
71: Deposit of new plan for redevelopment
On the deposit of the new unit plan and the registration of any necessary transfers or other instruments, the Registrar must—
a: cancel the existing records of title
b: create separate records of title 1972 No 15 s 44(5) Section 71(a) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 71(b) amended 12 November 2018 section 250 Land Transfer Act 2017
11: Miscellaneous provisions relating to creation of, and dealings with, unit title developments
72: Application of
Land Transfer Act 2017 Except as otherwise provided in this Act and subject to any necessary modifications, the provisions of the Land Transfer Act 2017 1972 No 15 s 4(6) Section 72 heading amended 12 November 2018 section 250 Land Transfer Act 2017 Section 72 amended 12 November 2018 section 250 Land Transfer Act 2017
73: Incidental rights
1: The common property and each unit on a unit plan has appurtenant to it the following rights over the
a: rights of support, shelter, and protection; and
b: rights for the passage or provision of water, sewerage, drainage, gas, electricity, oil, garbage, air, all telecommunications and electronic services, and all other services of any nature.
2: The common property and each unit on a unit plan has appurtenant to it the following rights over the
a: a right to the full, free, and uninterrupted access and use of light to or for any windows, doors, or other apertures existing at the date of deposit of the plan and enjoyed at that date; and
b: a right to maintain overhanging eaves existing at the date of deposit of the plan.
3: The rights created by this section carry with them all ancillary rights and responsibilities necessary to make them effective as if they were easements.
4: Nothing in this section affects any land other than the land to which the unit plan relates 1972 No 15 s 11 Section 73(1) amended 30 May 2017 section 30(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 73(2) amended 30 May 2017 section 30(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 73(4) amended 30 May 2017 section 30(2) Regulatory Systems (Building and Housing) Amendment Act 2017 Scheme following destruction or damage
74: Scheme following destruction or damage
1: This section applies if any building or other improvement comprised in any unit or on the base land is damaged or destroyed, but the unit plan is not cancelled.
2: The High Court may, by order, settle a scheme on the application of—
a: the body corporate; or
b: if the unit title development is in a layered unit title development, the body corporate of the head unit title development or any subsidiary unit title development in that layered unit title development; or
c: an administrator; or
d: the owner or one of the owners of a unit; or
e: a registered mortgagee of a unit.
3: A scheme under subsection (2) may include provisions—
a: for the reinstatement in whole or in part of the building or other improvement; or
b: for the transfer of units to the body corporate so as to form part of the common property.
4: If an order is made under subsection (3)(b), sections 58(1)(c) 59
5: A notice of any application made under subsection (2) must be lodged with the Registrar who must enter on the supplementary record sheet a notification that the application has been made.
6: On any application to the High Court under subsection (2), the following persons have the right to appear and be heard:
a: any person having or claiming to have any estate or interest in any unit or in the whole or part of the base land; or
b: any insurer who has effected insurance on the buildings or other improvements comprised in any unit or in the whole or part of the base land.
7: In the exercise of its powers under subsections (2) and (3), the High Court may make any orders that it considers expedient or necessary for giving effect to the scheme, including orders—
a: directing the application of any insurance money; or
b: directing payment of money by or to the body corporate or by or to any person; or
c: directing the deposit of an appropriate new unit plan; or
d: imposing any terms and conditions that it thinks fit.
8: The High Court may cancel, vary, modify, or discharge any order made by it under this section.
9: The High Court may make any order for payment of costs that it thinks fit. 1972 No 15 s 48
12: Management structures and arrangements
Establishment and constitution of body corporate
75: Creation of body corporate
1: When a unit plan is deposited under section 17 section 24
2: When a unit plan is deposited under section 21 section 24
3: The name of the body corporate for a unit plan is the words Body Corporate Number
76: Members of body corporate
1: The members of a body corporate for a unit plan are the unit owners of all the units in the unit plan.
2: Despite subsection (1), and except as provided in sections 56 58 68 105(4) 121(3) 123 170 190 section 75
77: Core things body corporate may do
1: A body corporate may do anything authorised by this Act or any other Act.
2: A body corporate may do anything a natural person of full age and capacity may do except as provided for in this Act or any other Act.
78: Act must be for purpose of performing duties or exercising powers
A body corporate may do an act under section 77 Rights and responsibilities
79: Rights of owners of principal units
An owner of a principal unit—
a: has all the rights derived from being registered as the owner of the stratum estate in a unit under this Act:
b: holds a share in the common property in accordance with section 54(2)
c: is entitled as a body corporate member to exercise a vote in respect of his or her unit, subject to section 96
d: is entitled to have quiet enjoyment of his or her unit without interruption by other unit owners or occupiers, or the body corporate or its agents, except as authorised by this Act or the regulations:
e: subject to section 80(1)(h) and (i) the use, enjoyment, or ownership interest of
f: has the right to have any dispute resolved in the manner set out in subpart 1
g: has the right to enforce the body corporate operational rules:
h: has the right to attend the general meetings of the body corporate. Section 79(e) amended 9 May 2023 section 8 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
80: Responsibilities of owners of principal units
1: An owner of a principal unit—
a: must permit the body corporate (or its agents) to enter the unit at any time in an emergency and at all reasonable hours, and after giving reasonable notice, for any of the following purposes:
i: to view the condition of the unit for the purpose of ascertaining compliance with the principal unit owners’ or occupiers’ obligations under this Act:
ii: to maintain, repair, or renew any infrastructure for services and utilities that serve more than 1 unit and any building elements that affect more than 1 unit or the common property, or both:
iii: to maintain, repair, or renew any common property:
iv: to ensure the body corporate operational rules are being complied with:
b: must do all things necessary to give effect to decisions of the body corporate:
c: must consult with his or her mortgagee, if required to do so, before exercising a vote under section 97 98
d: must comply with all laws and legal requirements relating to the use, occupation, or enjoyment of the unit:
e: must carry out, without delay, all work that may be ordered by a territorial authority or public body in respect of the unit to the satisfaction of that authority or body:
f: must pay all rates, taxes, charges, body corporate levies, and other outgoings that are from time to time payable in respect of the unit:
g: must repair and maintain the unit and keep it in good order to ensure that no damage or harm, whether physical, economic, or otherwise, is, or has the potential to be, caused to the common property, any building element, any infrastructure, or any other unit in the building:
h: must notify the body corporate of his or her intention to carry out any additions or structural alterations before the commencement of any work:
i: must not make any additions or structural alterations to the unit that materially affect the use, enjoyment, or ownership interest of
j: must comply with the body corporate operational rules:
k: must not do anything that breaches or in any way undermines any policy of insurance in the name of the body corporate.
2: For the purpose of subsection (1), an owner of a future development unit that is in use as a place of residence or business or otherwise, in whole or in part, is to be treated as an owner of a principal unit.
3: For the purposes of subsection (1)(a) and (i),—
a: a subsidiary body corporate is to be treated as the unit owner of the principal unit that was subdivided to create the subsidiary unit title development; and
b: a reference to a unit
4: Subsection (1)(b) does not affect the right of an owner to apply for minority relief under section 210 sections 212 to 216 Section 80(1)(i) amended 9 May 2023 section 9 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
81: Responsibilities of absent owner of unit who leases or licenses unit
1: This section applies to owners of units who lease or license their unit, and who are absent from New Zealand for longer than 3 consecutive weeks.
2: An owner of a unit to whom this section applies must—
a: appoint a person in New Zealand to act as his or her agent unless the lease is in respect of a residential tenancy under the Residential Tenancies Act 1986
b: advise the body corporate of the agent’s name, address for service, and contact details.
3: A person appointed as an agent under subsection (2) or the Residential Tenancies Act 1986
4: If an owner of a unit does not appoint an agent or the agent fails or refuses to enforce the body corporate operational rules, the body corporate may enforce those rules.
82: Requirements relating to consent by subsidiary body corporate to additions or structural alterations
1: The subsidiary body corporate may only consent to additions or structural alterations under section 80(1)(i)
a: the body corporate for each unit title development located between it and its head unit title development; and
b: the body corporate for its head unit title development.
2: A parent body corporate or the head body corporate must not unreasonably withhold consent under subsection (1) and may not withhold consent unless the proposed addition or structural alteration changes the boundaries of the subsidiary unit title development or has a material impact on the use or amenities of the parent unit title development or head unit title development.
83: Rights and responsibilities of owners of principal units in subsidiary unit title developments
1: This section applies to the owner of a principal unit in a subsidiary unit title development.
2: The owner of the principal unit has the same rights relating to access and enjoyment of the common property of the following unit title developments as if the owner of the principal unit were the owner of a principal unit in that unit title development:
a: the parent unit title development of the subsidiary unit title development:
b: any other unit title development located between the subsidiary unit title development and its head unit title development:
c: the head unit title development.
3: The owner of the principal unit must comply with the body corporate operational rules of the following unit title developments in addition to the body corporate operational rules of the subsidiary unit title development:
a: the parent unit title development of the subsidiary unit title development:
b: any other unit title development located between the subsidiary unit title development and its head unit title development:
c: the head unit title development. Powers and duties of body corporate
84: Powers and duties of body corporate
1: The body corporate has the powers and duties set out in—
a: sections 40 to 42
b: section 81
ba: section 84A
c: section 85
d: section 86
e: section 87
f: section 90
g: section 105(4)
h: section 108
i: sections 115 117 to 120
j: section 116
k: section 121
l: sections 130 131
m: section 132
n: section 135
o: section 136(4)
p: section 138
pa: section 202A
q: section 206
r: any other provisions of this Act, any other Act, or the regulations that confer powers or duties on the body corporate and subject to any limitations to those powers and duties in this Act, any other Act, or the regulations.
2: Except as expressly provided in this Act, the body corporate does not have any duties in respect of a future development unit that comprises part of the unit title development. Section 84(1)(a) replaced 30 May 2017 section 31(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 84(1)(ba) inserted 9 May 2023 section 10(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 84(1)(g) amended 30 May 2017 section 31(2) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 84(1)(pa) inserted 9 May 2024 section 10(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
84A: Records to be kept
A body corporate must keep the records necessary to enable unit owners to comply with their obligations under sections 146 147 Section 84A inserted 9 May 2023 section 11 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
85: Register of unit owners
1: A body corporate must keep and maintain a register of all owners of principal units and accessory units on the unit plan in accordance with the regulations.
2: The owner of a principal unit must notify the body corporate in writing of any changes to the information held in the register that relates to his or her unit.
3: Despite anything in this Act, where the owner of a principal unit transfers his or her unit to any other person, until the body corporate is notified in writing of the transfer,—
a: that owner of the principal unit remains liable to the body corporate for all contributions levied by the body corporate under section 121
b: the transferee is only entitled to exercise the voting rights for the unit at a general meeting with the consent of the other owners of principal units who are present at the meeting.
4: Nothing in subsection (3)(a) restricts the right of the owner of the principal unit to recover any amounts from a transferee that the owner has paid in respect of contributions levied by the body corporate. 1972 No 15 s 54
86: Power of body corporate to sign document
1: A body corporate may serve an owner of a principal unit with a notice in the prescribed form requiring the owner to sign any document in order to carry out a resolution either passed by the body corporate or, if an objection has been made, confirmed by the court under section 215(4)(b)
2: If the notice relates to a designated resolution, the notice may not be served until the time for making an objection under section 213
3: If the notice relates to a resolution for which an application for relief has been made under section 210
4: The body corporate may sign the document on behalf of the owner if the owner—
a: fails to sign the document within 10 working days after being served with the notice; or
b: refuses to sign the document.
5: If the body corporate signs any document pursuant to subsection (4)
6: The Registrar may rely on the certificate. Section 86(5) amended 5 December 2013 section 10 Unit Titles Amendment Act 2013
87: Payment of ground rental by body corporate
1: This section applies in relation to a unit development on leasehold land.
2: The body corporate must pay the lessor the ground rental from any levies collected from the unit owners before making any other payments.
3: For the purposes of subsection (2), in a layered unit title development the body corporate referred to in that subsection is the head body corporate. Meetings and voting
88: Meetings
1: All meetings of a body corporate are general meetings.
2: A general meeting is either an annual general meeting or extraordinary general meeting.
3: Members of a body corporate may attend and vote at a general meeting (and members of a body corporate committee may attend and vote at a committee meeting) in person or by audio link, audiovisual link, or other remote access facility despite any limitation or condition on the use of an audio link, audiovisual link, or remote access facility that is contained in the body corporate operational rules.
4: A meeting conducted under this section must comply with any procedures or other matters prescribed in the regulations, including those relating to electronic voting.
5: 1972 No 15 Schedule 2 cl 15 2023-01-12 Unit Titles Act 2010 Subsections (3), (4), and (5) are repealed immediately after the expiry of the 12-week period that starts on the date of the expiry or revocation of The Epidemic Preparedness (COVID-19) Notice 2020 (gazette notice 2020-go1368), this date is subject to change: That notice was renewed on 15 September 2022 and now expires on 20 October 2022 (Epidemic Preparedness (COVID-19) Notice 2020 Renewal Notice (No 3) 2022) (https://gazette.govt.nz/notice/id/2022-sl3849), UNLESS an earlier expiry date is notified; or the notice is further renewed (under section 7 of the Epidemic Preparedness Act 2006). Section 88(3) replaced 9 December 2022 section 12 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 88(4) replaced 9 December 2022 section 12 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 88(5) repealed 9 December 2022 section 12 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
89: Requirement for annual general meeting
1: The first annual general meeting of a body corporate must be held as soon as practicable, and in any event within 6 months after the earlier of the following dates:
a: the date of the deposit of the unit plan:
b: the date of the settlement of the first sale of a unit.
2: At the first annual general meeting the body corporate must nominate and elect a chairperson in accordance with the regulations.
3: Subsequent annual general meetings must be held once every calendar year and not later than 15 months after the previous annual general meeting. 1972 No 15 Schedule 2 cl 14 Section 89(1) replaced 5 December 2013 section 11 Unit Titles Amendment Act 2013
89A: Requirement for extraordinary general meeting: request by unit owners of not less than 25% of principal units
An extraordinary general meeting must be held in accordance with the regulations if the chairperson receives a notice that—
a: asks for an extraordinary general meeting to consider and decide motions proposed in the notice; and
b: is signed by or for the unit owners of not less than 25% of the principal units. Section 89A inserted 30 May 2017 section 32 Regulatory Systems (Building and Housing) Amendment Act 2017
90: Who may call general meetings
1: An annual general meeting must be called by the chairperson in accordance with the regulations.
2: An extraordinary general meeting of a body corporate required by section 89A
3: An extraordinary general meeting of a body corporate may be called at any other time by the chairperson or the body corporate committee in accordance with the regulations. Section 90(2) replaced 30 May 2017 section 33 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 90(3) inserted 30 May 2017 section 33 Regulatory Systems (Building and Housing) Amendment Act 2017
91: General meetings of parent body corporate or parent body corporate committee
1: A parent body corporate or parent body corporate committee must give notice of any general meeting to each of its subsidiary bodies corporate in accordance with the regulations.
2: The parent body corporate or parent body corporate committee must not vote on a resolution unless notice has been given.
3: If the parent body corporate or parent body corporate committee fails to give notice in accordance with the regulations, the vote is void.
92: Representation of body corporate
1: When the subsidiary body corporate receives notice of a general meeting of its parent body corporate, the chairperson of the subsidiary body corporate must call a general meeting and that meeting must be held before the parent body corporate’s general meeting.
2: When the subsidiary body corporate receives notice of a general meeting of its parent body corporate committee, the subsidiary body corporate committee, if there is one, or the chairperson of the subsidiary body corporate if there is no subsidiary body corporate committee, must call a general meeting and that meeting must be held before the parent body corporate committee’s general meeting.
3: At the meeting, the subsidiary body corporate or subsidiary body corporate committee, as the case may be, must consider the matters on the agenda of its parent body corporate’s or parent body corporate committee’s general meeting.
4: Any matter on the agenda relating to a motion to be decided by—
a: ordinary resolution must first be decided by ordinary resolution at the meeting of the subsidiary body corporate or subsidiary body corporate committee, as the case may be:
b: special resolution must first be decided by special resolution at the meeting of the subsidiary body corporate or subsidiary body corporate committee, as the case may be.
5: If the ordinary resolution or special resolution—
a: is passed, the subsidiary body corporate or subsidiary body corporate committee may direct its subsidiary body corporate representative to vote in favour of the motion at the parent body corporate or parent body corporate committee general meeting:
b: fails, the subsidiary body corporate or subsidiary body corporate committee must direct its subsidiary body corporate representative to vote against the motion at the parent body corporate or parent body corporate committee general meeting.
6: Despite subsection (5), a subsidiary body corporate or subsidiary body corporate committee may direct the subsidiary body corporate representative to abstain from voting on any matter on the agenda if,—
a: in the case of a matter to be decided by ordinary resolution, it decides by ordinary resolution to abstain from voting on that matter; or
b: in the case of a matter to be decided by special resolution, it decides by special resolution to abstain from voting on that matter.
93: Subsidiary body corporate representative
1: A subsidiary body corporate must ensure that at all times there is a person (the subsidiary body corporate representative
2: The parent body corporate or parent body corporate committee is entitled to rely on that notice as conclusive evidence that the subsidiary body corporate representative named in the notice has authority to act on the subsidiary body corporate’s behalf.
94: Duties of subsidiary body corporate representative
1: The subsidiary body corporate representative may attend the general meetings of its parent body corporate or its parent body corporate committee, as the case may be.
2: If the subsidiary body corporate representative attends a general meeting, it must represent its body corporate or its body corporate committee—
a: in the way its body corporate or its body corporate committee directs; and
b: subject to paragraph (a)
3: The subsidiary body corporate representative must abstain from voting on any matter to be decided by ordinary or special resolution at a general meeting if the body corporate has not given any directions to the subsidiary body corporate representative in relation to the matter.
4: Any vote cast by a subsidiary body corporate representative is, in the absence of evidence to the contrary, to be treated as having been cast in accordance with subsection (2).
95: Quorum
1: A quorum for a general meeting of a body corporate is the number of persons attending in accordance with section 88(3)
a: who are entitled to exercise the voting power in respect of not less than 25% of the total number of principal units; and
b: who also satisfy the eligibility requirements to exercise that voting power (for example, have no outstanding levy amounts owing to the body corporate).
1A: However, if a body corporate comprises 2 or more members, a quorum must be at least 2 persons who satisfy the requirements of subsection (1).
2: Except as otherwise provided for in this Act and the regulations, no business may be transacted at a general meeting of the body corporate unless a quorum is present at the time.
3: To avoid doubt, nothing in this section prevents those who are entitled but not eligible to vote from attending meetings and taking part in any discussions.
4: For entitlement to vote, see section 79(c) see section 96 Section 95(1) replaced 9 May 2023 section 13(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 95(1A) inserted 9 May 2023 section 13(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 95(3) inserted 9 May 2023 section 13(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 95(4) inserted 9 May 2023 section 13(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
96: Voting: eligibility
1: A person eligible to vote at a general meeting of the body corporate ( eligible voter
a: whose name is entered on the register of owners of principal units as—
i: the owner of a principal unit; or
ii: the representative of that owner; or
b: who is the nominee of a company the name of which is entered on the register of owners of principal units as the representative of the owner; or
c: who is a subsidiary body corporate representative.
2: For subsection (1)(a)(ii), a person is a representative of the owner of a principal unit
a: the person is a guardian, trustee, receiver, or other representative of the owner, and is authorised to act on the owner’s behalf; or
b: the person is authorised by law to administer, manage, or control the property of the owner.
3: An eligible voter may not vote unless all body corporate levies and other amounts that are from time to time payable to the body corporate in respect of his or her unit have been paid.
4: In the case of an eligible voter who is a subsidiary body corporate representative, the eligible voter may not vote unless all body corporate levies and other amounts that are from time to time payable to the body corporate by the subsidiary body corporate have been paid.
5: An eligible voter whose interest in his or her unit is subject to a registered mortgage must, if required by that mortgage, obtain the consent of the mortgagee before exercising a vote.
6: The payment of any body corporate levies and other amounts that are from time to time payable to the body corporate by the owner of a principal unit and that are disputed by the owner does not affect the right of that owner to dispute the payment if the sole purpose of making the payment was to exercise that owner's entitlement to vote.
7: Nothing in this section prevents a mortgagee of a principal unit from—
a: directing the owner to vote in a particular manner; or
b: exercising a vote on behalf of the owner in accordance with the Property Law Act 2007
8: A mortgagee must give written notice to the body corporate if it intends to exercise a vote on behalf of the owner under subsection (7)(b). 1972 No 15 s 41
97: Counting of votes for ordinary resolution subject to request for poll
1: This section applies if a motion is to be decided by ordinary resolution, subject to a request for a poll, at a general meeting of a body corporate.
2: One vote only may be exercised for each principal unit.
3: A subsidiary body corporate representative has 1 vote for the principal unit that was subdivided to create the subsidiary unit title development.
4: For a body corporate meeting to pass an ordinary resolution, a majority in number of the eligible voters who vote on the resolution must vote in favour of the resolution.
5: An eligible voter whose interest in his or her unit is subject to a registered mortgage must, if required by that mortgage, obtain the consent of the mortgagee before exercising a vote.
6: An ordinary resolution passed under this section is subject to a request for a poll under section 99
98: Counting of votes for special resolution subject to request for poll
1: This section applies if a motion is to be decided by special resolution, subject to a request for a poll, at a general meeting of a body corporate.
2: One vote only may be exercised for each principal unit.
3: A subsidiary body corporate representative has 1 vote for the principal unit that was subdivided to create the subsidiary unit title development.
4: For a special resolution to pass, 75% of the eligible voters who vote on the resolution must vote in favour of the resolution.
5: An eligible voter whose interest in his or her unit is subject to a registered mortgage must, if required by that mortgage, obtain the consent of the mortgagee before exercising a vote.
6: A special resolution passed under this section is subject to a request for a poll under section 99
99: Request for poll
1: A poll may be requested by any eligible voter or their proxy who votes section 97 section 98
2: The eligible voter or their proxy must request the poll in person at the meeting or by audio link, audiovisual link, or other remote access facility. Section 99(1) amended 9 May 2023 section 14(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 99(2) replaced 9 May 2023 section 14(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
100: Counting of votes if poll requested
1: This section applies if—
a: a motion is passed by ordinary resolution or special resolution; and
b: a poll is properly requested.
2: One vote only may be exercised for each principal unit and only those who voted on the motion under section 97 98
3: For the motion to pass by ordinary resolution where a poll is requested, a majority
4: For the motion to pass by special resolution where a poll is requested, 75% of the ownership interest represented by those voting must vote in favour of the motion.
5: The result of any poll is the resolution of the general meeting. Section 100(3) amended 5 December 2013 section 12 Unit Titles Amendment Act 2013
101: How matters at general meeting of body corporate decided
1: A matter to be decided by a body corporate must be decided by ordinary resolution at a general meeting.
2: Subsection (1) applies unless—
a: the Act provides for the matter to be decided by the body corporate by special resolution; or
b: the body corporate committee exercises a delegated authority to decide the matter.
2A: A body corporate may decide matters within its functions and powers regardless of whether they have been delegated to the body corporate committee ( see also section 110
3: Any matter that is not on the agenda for a general meeting may be discussed at the meeting but, unless all the eligible voters are present at the meeting, no resolution may be voted on and made in respect of that matter except to include that matter on the agenda for a subsequent general meeting.
4: Every resolution must be recorded in writing. Section 101(1) replaced 9 May 2023 section 15 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 101(2) replaced 9 May 2023 section 15 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 101(2A) inserted 9 May 2023 section 15 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
102: Voting: proxies
1: An eligible voter may exercise the right to vote—
a: by being present in person or by audio link, audiovisual link, or other remote access facility; or
b: by proxy.
2: A proxy for an eligible voter is entitled to attend and be heard at a body corporate meeting as if the proxy were the eligible voter.
3: A proxy must be appointed by notice in writing signed by the eligible voter.
4: If there are 2 or more eligible voters who own 1 principal unit and they are jointly entitled to exercise 1 vote and wish to do so by proxy, that proxy must be jointly appointed by them and may be 1 of them. 1972 No 15 Schedule 2 cl 26 Section 102(1) replaced 9 December 2022 section 16 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
103: Voting: postal
1: An eligible voter or his or her proxy may exercise the right to vote at a body corporate meeting by casting a postal vote.
2: Every postal vote must be in the prescribed form.
3: A postal vote must be sent to the chairperson or to the person authorised by the chairperson to receive and count postal votes.
103A: Voting: electronic
1: An eligible voter may exercise the right to vote at a body corporate meeting by casting a vote electronically before or during a meeting.
2: An electronic vote must be cast in accordance with the regulations. Section 103A inserted 9 May 2024 section 17 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
104: Passing of resolution without general meeting
1: A resolution may be passed without a general meeting in accordance with this section.
2: Notice of the resolution must be given to eligible voters in accordance with the regulations.
3: A resolution in writing signed by a majority of eligible voters in respect of an ordinary resolution, and not less than 75% of eligible voters in respect of a special resolution, Section 104(3) amended 5 December 2013 section 13 Unit Titles Amendment Act 2013 Body corporate operational rules
105: Body corporate operational rules
1: Every body corporate must have, at all times, body corporate operational rules.
2: The first body corporate operational rules that apply to a particular body corporate are—
a: the rules prescribed by regulations made under section 217(i)
b: if the original owner lodges altered rules for deposit with the unit plan under this Act, those altered rules.
3: The body corporate may amend, revoke, or make additions to the body corporate operational rules at any time after the date that the unit plan is deposited ( see section 106
4: The body corporate operational rules are binding on—
a: the body corporate; and
b: the owners of principal units; and
c: any person who occupies a principal unit; and
d: any mortgagee who is in possession of a principal unit.
5: For the purpose of subsection (4), principal unit Section 105 replaced 30 May 2017 section 34 Regulatory Systems (Building and Housing) Amendment Act 2017
106: Amendments, revocations, and additions to body corporate operational rules
1: Any amendment or addition to the body corporate operational rules must relate to—
a: the control, management, administration, use, or enjoyment of the principal units, future development units, accessory units, or common property; or
b: the regulation of the body corporate.
2: No powers or duties may be conferred or imposed on the body corporate that are not incidental to the powers and duties conferred or imposed on the body corporate under this Act.
3: Any amendment, revocation, or addition—
a: must be made by ordinary resolution at a body corporate general meeting; and
b: does not have effect until the body corporate has notified the Registrar in the prescribed form.
4: Any amendment or addition that is inconsistent with any provision of this Act or any other enactment or rule of law is invalid.
107: Conflict between body corporate operational rules
1: Subject to subsection (2), in the event of a conflict between—
a: a subsidiary body corporate’s operational rules and its parent body corporate’s operational rules, the parent body corporate’s operational rules prevail:
b: a subsidiary body corporate’s operational rules and its head body corporate’s operational rules, the head body corporate’s operational rules prevail.
2: If a subsidiary body corporate has deposited alterations to the rules in accordance with section 105(3)
3: The bodies corporate are—
a: the subsidiary body corporate’s parent body corporate:
b: any body corporate located between the subsidiary body corporate’s parent body corporate and the head body corporate:
c: the head body corporate. Section 107(2) amended 30 May 2017 section 35 Regulatory Systems (Building and Housing) Amendment Act 2017 Delegation
108: Delegation of duties and powers
1: Except as provided in subsection (2), a body corporate may delegate any of its duties or powers, either generally or specifically, to the body corporate committee by special resolution and written notice.
2: The body corporate must not delegate—
a: any of the powers or duties set out in—
i: subsection (1) (which is the general power of delegation):
ii: section 41
iii: section 105(4)
iv: section 136(4)
b: a matter if the Act provides for the matter to be decided by the body corporate by special resolution. Section 108(2) replaced 9 May 2023 section 18 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
109: Delegated duties and powers of body corporate committee
1: A body corporate committee to which any duties or powers are delegated under section 108(1)
2: The body corporate committee must not delegate any of its delegated duties or powers.
3: The body corporate committee, when purporting to perform a duty or exercise a power under a delegation,—
a: is, in the absence of proof to the contrary, presumed to do so in accordance with the terms of that delegation; and
b: must produce evidence of the body corporate committee’s authority to do so, if reasonably requested.
110: Effect of delegation on body corporate
No delegation affects or prevents the performance of any duty or the exercise of any power by a body corporate, or affects the responsibility of the body corporate for the actions of the body corporate committee acting under the delegation.
111: Revocation of delegation
A delegation under section 108(1) Body corporate committees
112: Establishment of body corporate committee
1: A body corporate of a unit title development of 9 or fewer principal units may form a body corporate committee.
2: A body corporate of a large unit title development
3: A body corporate committee (if the body corporate decides to form one) must be formed and conduct its business in accordance with this Act and the regulations. Section 112(2) amended 9 May 2023 section 19(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 112(3) inserted 9 May 2023 section 19(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
112A: Chairperson of body corporate committee
1: The chairperson of a body corporate is—
a: a member of its body corporate committee; and
b: the chairperson of the body corporate committee.
2: Subsection (1)(b) applies unless, at its annual general meeting, the body corporate decides by ordinary resolution that the chairperson of the committee should instead be a person that is elected to the committee (by the process prescribed in the regulations). Section 112A inserted 9 May 2023 section 20 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
113: Decision-making of body corporate committee
1: A body corporate committee must produce an agenda for each body corporate committee meeting.
2: A body corporate committee must keep written records of its meetings.
3: Matters must be decided by a simple majority of votes and each resolution must be recorded and included in the written records for the meeting.
4: The committee must promptly report to the body corporate on the meetings it holds in the manner prescribed in the regulations. Section 113 replaced 9 May 2023 section 21 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
114: Body corporate committee to report to body corporate
A body corporate committee must report, as prescribed in the regulations, to the body corporate on the exercise of the duties or powers delegated to it by the body corporate under section 108(1)
114A: Body corporate committee to comply with code of conduct
The members of a body corporate committee must comply with the code of conduct for committee members prescribed in the regulations. Section 114A inserted 9 May 2023 section 22 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
114B: Conflicts of interest of members of body corporate committee
The members of a body corporate committee must comply with the conflict of interest rules contained in sections 114C to 114F Section 114B inserted 9 May 2023 section 22 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
114C: Duty to disclose conflicts of interest
1: A member of a body corporate committee who is interested in a matter must disclose details of the nature and extent of the interest (including any monetary value of the interest, if it can be quantified)—
a: to the committee; and
b: in an interests register kept by the committee ( see section 114F
2: Disclosure under subsection (1) must be made as soon as practicable after the member becomes aware of being interested in the matter.
3: A person is interested
a: may derive a financial benefit from the matter; or
b: is the spouse, civil union partner, de facto partner, child, or parent of a person who may derive a financial benefit from the matter; or
c: may have a financial interest in a person to whom the matter relates; or
d: is a partner, director, officer, board member, or trustee of a person who may have a financial interest in a person to whom the matter relates; or
e: may be interested in the matter because the body corporate’s operational rules say so.
4: However, a person is not interested in a matter—
a: merely because they receive an indemnity, insurance cover, remuneration, or other benefit authorised by the body corporate; or
b: if the interest is due to their membership of the body corporate and it is the same or substantially the same as the interest of all or most other members of the body corporate; or
c: if their interest is so remote or insignificant that it cannot reasonably be regarded as likely to influence the person in carrying out their responsibilities under this Act, the regulations, or the body corporate’s operational rules.
5: In this section and sections 114D to 114F matter
a: the body corporate committee’s performance of its functions or exercise of its powers; and
b: an arrangement, agreement, or contract (a transaction Section 114C inserted 9 May 2023 section 22 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
114D: Consequences of being interested in matter
1: A member who is interested in a matter—
a: must not vote or take part in any decision of the body corporate committee that relates to the matter; and
b: must not sign any document relating to the entry into a transaction or the initiation of the matter; but
c: may take part in any committee discussion relating to the matter and be present at the time the decision of the committee is made (unless the committee decides otherwise).
2: A member who is prohibited from voting under subsection (1) may still be counted for the purpose of determining whether there is a quorum at any meeting at which the matter is considered, with 1 exception, as set out in subsection (3).
3: If 50% or more of the members of the committee are prohibited from voting under subsection (1), an extraordinary general meeting of the body corporate must be called to consider and determine the matter. Section 114D inserted 9 May 2023 section 22 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
114E: Consequences of failure to disclose interest
1: A body corporate committee must notify the members of the body corporate of a failure to comply with section 114C 114D
2: A failure to comply with section 114C 114D Part 4
3: Subsection (2) does not affect any right a person may have to make an application under this Act in relation to the decision on the matter. Section 114E inserted 9 May 2023 section 22 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
114F: Interests register
1: The body corporate committee must keep a register of disclosures made by committee members under section 114C interests register
2: The interests register must be available for inspection by the members of the committee.
3: The operational rules of the body corporate may provide for whether (and, if so, the extent to which) the interests register is to be made available for inspection by other members of the body corporate or any other person. Section 114F inserted 9 May 2023 section 22 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Body corporate managers Heading inserted 9 May 2023 section 22 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
114G: Definition of body corporate manager
1: In this Act, body corporate manager
2: The services are as follows:
a: record-keeping and other administrative services:
b: financial services, including the handling of money belonging to the body corporate or members of the body corporate:
c: regulatory compliance services, including—
i: the making or preparing of statutory disclosures; and
ii: regulatory compliance services performed on behalf of the body corporate (including the body corporate committee and the body corporate chairperson). Section 114G inserted 9 May 2023 section 22 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
114H: Functions and duties of body corporate manager
1: A body corporate manager must exercise or perform the functions and duties—
a: that the body corporate may lawfully authorise the body corporate manager to exercise or perform; and
b: that are specified in a written agreement setting out the manager’s terms of employment/engagement.
2: The agreement must also provide for any matter prescribed by the regulations.
3: Subsection (4) applies if a body corporate intends to employ or engage a body corporate manager that is the owner of a principal unit within the unit title development.
4: The person or a proxy for the person is not entitled to vote on any resolution relating to the person’s employment or engagement as the manager. Section 114H inserted 9 May 2023 section 22 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
114I: Conflicts of interest of body corporate managers
1: A body corporate manager must, as soon as practicable after becoming aware of any conflict of interest, disclose it to the body corporate committee or, if there is no committee, to the body corporate chairperson, and the body corporate must decide whether, and on what terms, the manager may continue to act in the matter concerned.
2: To avoid doubt, if a person is engaged as a body corporate manager by more than 1 body corporate,—
a: the manager must act independently in relation to each body corporate; and
b: all matters for which the manager is responsible in relation to each body corporate must be independently satisfied; and
c: the manager must not intermix the funds, records, or any other things of any of the body corporates with those of 1 or more of the other body corporates.
3: For the purposes of determining whether there is a conflict of interest in relation to a matter, section 114C(3) to (5)
a: as if a reference to a body corporate committee were a reference to a body corporate manager; and
b: with any other necessary modifications.
4: The body corporate committee or the chairperson of a body corporate must keep a separate register of disclosures made by its body corporate managers (an interests register
5: The register must be available for inspection—
a: by members of the body corporate committee (if any); and
b: if the operational rules of the body corporate allow, by any other members of the body corporate or any other person to the extent that the rules provide. Section 114I inserted 9 May 2023 section 22 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
114J: Body corporate manager to comply with code of conduct
A body corporate manager must comply with the code of conduct for body corporate managers prescribed in the regulations. Section 114J inserted 9 May 2023 section 22 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
13: Financial and property management
Long-term maintenance plans, funds, and ancillary matters
115: Operating account
1: A body corporate must establish and maintain an operating account for the purpose of meeting the expenses described in subsection (2).
2: The expenses are—
a: those relating to the management and governance of a unit title development:
b: those relating to provision of services and amenities for the benefit of the unit title development:
c: costs associated with statutory or regulatory compliance:
d: any ground rental or licence fees relating to the base land:
e: those incurred at least once a year relating to the maintenance of the unit title development.
3: The body corporate must establish a current account at a bank and may, by special resolution, nominate a person or persons who may operate the account and specify the manner in which it may be operated.
116: Long-term maintenance plan
1: A body corporate must establish and regularly maintain a long-term maintenance plan.
2: A long-term maintenance plan must cover a period of at least 10 years from the date of the plan or the last review of the plan.
3: The purpose of a long-term maintenance plan is to—
a: identify future maintenance requirements and estimate the costs involved; and
b: support the establishment and management of the funds; and
c: provide a basis for the levying of owners of principal units; and
d: provide ongoing guidance to the body corporate to assist it in making its annual maintenance decisions.
117: Long-term maintenance fund
1: A body corporate must establish and maintain a long-term maintenance fund unless the body corporate, by special resolution, decides not to establish a long-term maintenance fund.
1A: The body corporate may determine the level of funding to be held in the fund.
1B: If a body corporate has decided not to establish a fund, the body corporate—
a: must review the decision annually; and
b: may, by special resolution, decide to establish a fund.
2: The fund may only be applied towards spending relating to the long-term maintenance plan.
3: The body corporate must, by special resolution, approve any amount to be spent on any 1 maintenance item if the amount exceeds the amount specified for that item in the long-term maintenance plan by more than 10%. Section 117(1A) inserted 9 May 2024 section 23 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 117(1B) inserted 9 May 2024 section 23 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
118: Optional contingency fund
A body corporate may establish and maintain 1 or more contingency funds to provide for unbudgeted expenditure.
119: Optional capital improvement fund
A body corporate may establish and maintain a capital improvement fund to provide for spending that adds to or upgrades the unit title development if that spending is not provided for in the long-term maintenance plan.
120: Separate bank accounts for each fund
The body corporate must establish, in accordance with any regulations, either—
a: separate bank accounts for each of the funds; or
b: a single bank account in which the respective funds are kept entirely separate and are able to be identified. Contributions
121: Contributions to be levied on unit owners
1: A body corporate may determine from time to time the amounts to be raised for each fund and impose levies on the owners of principal units to establish and maintain each fund.
2: The levies must be calculated as follows:
a: in the case of the operating account, long-term maintenance fund, and any contingency fund, in proportion to each unit owner’s utility interest; and
b: in the case of any capital improvement fund, in proportion to each unit owner’s ownership interest.
3: The owner of a future development unit is liable to pay contributions levied by the body corporate under this section from the date that the future development unit is first in use as a place of residence or business or otherwise and from that date that future development unit is to be treated as a principal unit for the purposes of this section.
4: Any levies imposed by a subsidiary body corporate must be sufficient to pay any levies raised under subsection (1) by the head body corporate, its parent body corporate, or any other parent body corporate located between the subsidiary body corporate and its head body corporate.
122: Notice to body corporate of occupation of future development unit
1: The owner of a future development unit must notify the body corporate when all or any part of it is in use as a place of residence or business or otherwise.
2: The notice must—
a: be in writing; and
b: contain details of the building or part of the building that is in use as a place of residence or business or otherwise; and
c: state the date of occupation.
3: The notice must be given within 10 working days of the date of occupation.
4: As soon as practicable after receiving the notice, the body corporate must send the owner a notice—
a: advising the owner of the amount of any levies imposed under section 121
b: setting out how those levies were calculated.
5: Failure of the owner to give notice to the body corporate under subsection (1) does not prevent the body corporate from charging levies from the date of occupation.
123: Body corporate may enter into agreement with owner of future development unit for expenditure of money for mutual benefit
The body corporate may enter into an agreement with the owner of a future development unit for the undertaking of any work or the expenditure of any money for the mutual benefit of the body corporate and that owner. 1979 No 37 s 9(3)
124: Recovery of levy
1: A body corporate must fix the date on or before which payments of levies are due.
2: The amount of any unpaid levy, together with any reasonable costs incurred in collecting the levy, is recoverable as a debt due to the body corporate by the person who was the unit owner at the time the levy became payable or by the person who is the unit owner at the time the proceedings are instituted.
3: The recovery of reasonable costs under subsection (2) that are legal costs as defined in section 176A(2) section 176A(1) 1972 No 15 s 32 Section 124(3) inserted 9 May 2024 section 24 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
125: Recovery of metered charges
1: If any amenity or service is supplied to the unit title development and the body corporate installs and maintains a meter recording the use of that amenity or service by any principal unit or accessory unit
2: Any charge is recoverable from the owner of the principal unit or the accessory unit
3: The cost of the usage charged by the body corporate to the principal unit owner or the accessory unit owner Section 125(1) amended 9 May 2023 section 25(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 125(2) amended 9 May 2023 section 25(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 125(3) amended 9 May 2023 section 25(3) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
126: Recovery of money expended for repairs and other work
1: This section applies where the body corporate does any repair, work, or act that it is required or authorised to do, by or under this Act, or by or under any other Act, but the repair, work, or act—
a: is substantially for the benefit of 1 unit only; or
b: is substantially for the benefit of some of the units only; or
c: benefits 1 or more of the units substantially more than it benefits the others or other of them.
2: Any expense incurred by the body corporate in doing the repair, work, or act is recoverable by it as a debt in any court of competent jurisdiction (less any amount already paid) in accordance with the following:
a: so far as the repair, work, or act benefits any unit by a distinct and ascertainable amount, the owner at the time when the expense was incurred and the owner at the time when the action is instituted are jointly and severally liable for the debt; or
b: so far as the amount of the debt is not met in accordance with the provisions of paragraph (a)
3: Despite subsection (2)(b), if the court considers that it would be inequitable to apportion the amount of the debt in proportion to the utility interest of the unit owners referred to in that paragraph, it may apportion that amount in relation to those units in the shares as it thinks fit, having regard to the relative benefits to those units. 1972 No 15 s 33
127: Recovery of money expended where person at fault
1: This section applies if the body corporate does any repair, work, or act that it is required or authorised to do, by or under this Act, or by or under any other Act, and the repair, work, or act was rendered necessary by reason of any wilful or negligent act or omission on the part of, or any breach of the Act, the body corporate operational rules
2: Any expense incurred by the body corporate in doing the repair, work, or act, together with any reasonable costs incurred in collecting the expense, is recoverable as a debt due to the body corporate (less any amount already paid) by the person who was the unit owner at the time the expense became payable or by the person who is the unit owner at the time proceedings are instituted. 1972 No 15 s 34 Section 127(1) amended 5 December 2013 section 14 Unit Titles Amendment Act 2013
128: Interest on money owing to body corporate
1: If a unit owner owes money to the body corporate under section 121 124 125 126 127
2: The amount of interest charged by a body corporate in relation to any unpaid debt must not exceed 10% per annum. 1972 No 15 s 34A
129: Subsidiary body corporate owner of principal unit for purpose of contributions
1: For the purpose of sections 121 to 128
2: In section 126 unit
3: In section 127(1) unit owner Spending, borrowing, investing, and distributing money or property
130: Spending, borrowing, and investing money
1: A body corporate may—
a: spend or borrow money; and
b: invest any money in any investment authorised by law for the investment of trust funds.
2: The body corporate may not grant a mortgage or a charge or any encumbrance over the common property. 1972 No 15 Schedule 2 cl 3(a), (b)
131: Distribution of surplus money or property
The body corporate may distribute money or personal property in its possession and surplus to its requirements among the unit owners in the same proportions in which the money was raised or the money which was used to pay for the property was raised. 1972 No 15 s 15(3) Auditing and monitoring
132: Financial statements
1: A body corporate must keep accounting records that—
a: correctly record and explain the transactions of the body corporate; and
b: will at any time enable the financial position of the body corporate to be determined with reasonable accuracy; and
c: will enable the financial statements of the body corporate to be readily and properly audited or reviewed.
2: Within 2 months after the end of each financial year, the body corporate must—
a: submit its financial statements to an independent auditor for auditing; or
b: submit its financial statements to an accountant for review; or
c: engage an accountant to undertake specific verification procedures as determined by the body corporate by special resolution at a general meeting.
3: The financial statements must be in the prescribed form and contain the matters prescribed by regulations.
4: The body corporate must pay any costs incurred under subsection (2).
5: A copy of the financial statements for the most recent financial year must accompany the notice of the annual general meeting.
6: The body corporate must comply with any reasonable request by a person appointed to undertake any of the functions described in subsection (2), that the body corporate answer questions or provide information within 20 working days after receiving the request.
7: Any person appointed to undertake any of the functions described in subsection (2) must be a qualified auditor (within the meaning of section 35 Financial Reporting Act 2013
8: The body corporate may, at the annual general meeting, decide by special resolution that subsection (2) does not apply for a particular year. Section 132(7) replaced 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013
133: Special powers of chief executive for monitoring and reporting on long-term financial and maintenance planning regime
Section 133 repealed 9 May 2024 section 26 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Insurance
134: Insurance
1: In this section and sections 135 to 137 insurer mortgagee principal insurance policy section 135
2: This section and sections 135 to 137
3: The body corporate, every unit owner, and every person entitled as mortgagee, by virtue of a registrable mortgage of any principal unit, have an insurable interest in the property covered by the principal insurance policy.
4: For the purposes of subsection (3), in a layered unit title development—
a: the body corporate referred to is the head body corporate; and
b: a unit owner is a unit owner in any unit title development that is part of the layered unit title development
5: The body corporate must, by notice in writing, inform the insurer and keep the insurer informed of the name and address of every unit owner and mortgagee.
6: Nothing in subsection (5) prevents a unit owner or mortgagee from giving notice to an insurer. 1972 No 15 s 38(1)–(4) Section 134(4)(b) amended 9 May 2023 section 46 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
135: Body corporate to insure all buildings, etc
1: The body corporate must insure and keep insured all buildings and other improvements on the base land to their full insurable value.
2: The body corporate must take out any other insurance it is required by law to take out and may take out additional insurance if it considers it practical to do so.
3: The body corporate must, before the commencement of any work by the body corporate or the unit owner, notify its insurer of any additions or structural alterations to any units.
4: For the purposes of this section, in a layered unit title development the body corporate referred to in this section is the head body corporate. 1972 No 15 s 15(1)(b), (c)
136: Insurance: principal insurance policy
1: A principal insurance policy remains in full force and effect until—
a: the insurer serves on the body corporate or its insurance broker and any mortgagee of which the insurer has notice, a notice to the effect that the policy will lapse or be cancelled on the date specified in the notice, that date not being earlier than 30 days after the date on which the notice is served; and
b: the date specified in the notice.
2: Despite subsection (1)(a), it is sufficient if the insurer sends the notice to the body corporate or mortgagee to the last address given to the insurer by the body corporate under section 134(5)
3: If the insurer considers that a unit owner or mortgagee is in default under the principal insurance policy, the notice must specify the nature of the default and state that the lapsing or cancellation of the policy is conditional upon the default not being remedied before the date specified in the notice.
4: Money paid by the insurer under the principal insurance policy must be applied in or towards reinstatement of the unit title development unless the body corporate decides otherwise by special resolution at a general meeting.
5: Sections 212 to 216
6: If money is applied in or towards reinstatement, then a mortgagee is not entitled to demand that any part of the money be applied in or towards repayment of the mortgage debt.
7: Nothing in this section limits or affects the rights of any person in or to the proceeds of the principal insurance policy under any of sections 74 177 to 189 1972 No 15 s 38(5)–(9)
137: Further provisions relating to insurance
1: Nothing in section 84 134 136
a: of a unit owner to take out an insurance policy against destruction of or damage to the unit owner’s unit:
b: of a mortgagee of a unit to require the unit owner, as a condition of the loan, to effect a policy of insurance (a mortgage redemption policy
2: Despite section 135(1)
a: if the principal and accessory units in the unit plan are stand-alone units, a body corporate may, by special resolution at a general meeting, require each unit owner to insure all the improvements within the boundaries of his or her unit (the body corporate remaining responsible for insuring all improvements within the common property boundaries):
b: indemnity cover is permitted if full replacement cover is not available in the market.
3: A payment made under a mortgage redemption policy by the insurer must be made to the mortgagees whose interests are noted on the policy in the order of the priority assigned to each mortgagee.
4: No mortgage redemption policy is liable to be brought into contribution with any other insurance policy except another mortgage redemption policy taken out in respect of the same debt.
5: This section applies despite any rule of law to the contrary. 1972 No 15 s 39 Repair and maintenance
138: Body corporate duties of repair and maintenance
1: The body corporate must repair and maintain—
a: the common property; and
b: any assets designed for use in connection with the common property; and
c: any other assets owned by the body corporate; and
d: any building elements and infrastructure that relate to or serve more than 1 unit.
2:
3: The body corporate may access at all reasonable hours any unit to enable it to carry out repairs and maintenance under this section.
4: Any costs incurred by the body corporate that relate to repairs to or maintenance of
5: For the purposes of this section,—
a: a subsidiary body corporate is to be treated as the unit owner of the principal unit that was subdivided to create the subsidiary unit title development; and
b: a reference in subsection (4) to a principal unit ; and
c: the duty to repair and maintain includes (without limitation) a duty to manage (for the purpose of repair and maintenance), to keep in a good state of repair, and to renew where necessary. Section 138(1) replaced 5 December 2013 section 15(1) Unit Titles Amendment Act 2013 Section 138(2) repealed 5 December 2013 section 15(1) Unit Titles Amendment Act 2013 Section 138(4) amended 5 December 2013 section 15(2) Unit Titles Amendment Act 2013 Section 138(5)(b) amended 5 December 2013 section 15(3) Unit Titles Amendment Act 2013 Section 138(5)(c) inserted 5 December 2013 section 15(4) Unit Titles Amendment Act 2013 Review of service contracts
139: Original owner’s obligation in relation to service contracts and signage agreements
1: This section applies if a body corporate enters into a service contract or a signage agreement for the unit title development before the date on which the control period ends.
2: The original owner and any associate of the original owner who is a member of the body corporate during the control period must exercise reasonable skill, care, and diligence and act in the best interests of the body corporate, as constituted after the date on which the control period ends, in ensuring that—
a: the terms of the contract or agreement achieve a fair and reasonable balance between the interests of the other party to the contract or agreement and the body corporate as constituted after the date on which the control period ends; and
b: the terms are appropriate for the unit title development; and
c: in respect of a service contract, the powers able to be exercised, and functions required to be performed, by the service contractor—
i: are appropriate for the unit title development; and
ii: do not adversely affect the body corporate’s ability to carry out its functions.
3: Despite subsection (2), the body corporate must not enter into a service contract or a signage agreement that has effect for longer than 24 months after the date on which the control period ends, unless the contract or agreement also includes—
a: a term—
i: providing for the contract or agreement to be varied after the control period ends by agreement of the parties; and
ii: including a right for either party to cancel the contract or agreement, without penalty, if agreement on a variation cannot be reached; and
b: a term providing that any rights of renewal under the contract or agreement exercisable after the control period ends are exercisable only if the body corporate agrees (by ordinary resolution) to each renewal as it arises. Section 139 replaced 9 May 2023 section 27 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
140: Compensation for, or termination of, service contracts
or signage agreements
1: This section applies to a service contract or signage agreement
a: to which the body corporate of a unit title development is a party; and
b: that was entered into before the date that the control period ended in relation to the unit title development concerned.
2: The appropriate decision-maker may, on the application of the body corporate, require a person, or, as the case may be, persons, described in subsection (3) to pay compensation to the body corporate if it appears to the appropriate decision-maker that the body corporate has suffered loss or damage because that person has, or, as the case may be, those persons have, failed to comply with section 139
3: The persons referred to in subsection (2) are—
a: the original owner:
b: an associate of the original owner who was a member of the body corporate during the control period.
4: An application under subsection (2) must be made within 3 years after that date that the control period ended.
5: The appropriate decision-maker may, on an application made by the body corporate, make an order terminating the service contract or signage agreement or agreement Section 140 heading amended 9 May 2023 section 28(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 140(1) amended 9 May 2023 section 28(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 140(5) amended 9 May 2023 section 28(3)(a) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 140(5) amended 9 May 2023 section 28(3)(b) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Appointment of administrator
141: Appointment of administrator
1: The body corporate, a creditor of the body corporate, the chief executive,
2: In the case of a layered unit title development
a: a head body corporate or parent body corporate may apply to the High Court for the appointment of an administrator of any 1 of its subsidiaries:
b: a subsidiary body corporate may apply to the High Court for the appointment of an administrator of its parent body corporate.
3: The High Court may, in its discretion on cause shown, appoint an administrator for an indefinite period or for a fixed period on such terms and conditions as to remuneration or otherwise as it thinks fit.
4: The remuneration and expenses of the administrator are to be met out of the operating account.
5: The administrator, to the exclusion of the body corporate and the body corporate committee, has and may exercise the powers of the body corporate and the committee, and is subject to the duties of the body corporate and the committee, or such of those powers and duties as the High Court orders.
6: The administrator may, in writing, delegate any of the powers vested in the administrator and may revoke any delegation at any time.
7: The High Court may, in its discretion on the application of the administrator or any other person referred to in subsection (1), remove or replace the administrator.
8: On any application made under this section the High Court may make any order for the payment of costs as it thinks fit.
9: As soon as an administrator is appointed, the administrator must lodge with the Registrar a sealed copy of the order of the High Court making the appointment. 1972 No 15 s 40 Section 141(1) amended 9 May 2024 section 29(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 141(2) amended 9 May 2024 section 29(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Liability
142: General liability in tort
1: Despite any enactment or rule of law, this section and section 143
a: proceedings under the Occupiers’ Liability Act 1962
b: proceedings in tort; and
c: proceedings in respect of a breach of statutory duty.
2: For the purposes of any proceedings to which this section and section 143
3: In proceedings in respect of the common property, a body corporate may, in the circumstances described in subsection (4), join the following in the proceedings:
a: an owner of a principal unit or former owner of a principal unit as a co-defendant; or
b: its head body corporate, its parent body corporate, or its subsidiary bodies corporate.
4: The circumstances are that the cause of action arose through the negligence or unauthorised act or omission of the owner or former owner or head body corporate, parent body corporate, or subsidiary body corporate, as the case may be.
5: Any judgment awarded to the plaintiff may be entered against the body corporate, its head body corporate, its parent body corporate, its subsidiary body corporate, or the owner jointly and severally.
6: The amount of any judgment, including costs, given jointly and severally under subsection (5), is recoverable as a debt by the body corporate from the unit owner against whom judgment is given in an action in any court of competent jurisdiction.
7: For the purpose of this section, principal unit 1972 No 15 s 14(1), (2), (3)
143: Body corporate as defendant in tort
1: This section applies if a body corporate is the defendant in any proceedings referred to in section 142(1)
2: The owners of principal units at the time judgment is entered are to be treated as having guaranteed to the plaintiff the payment by the body corporate of the full amount awarded under the judgment.
3: However, any liability of an owner under subsection (2) is limited to an amount equal to that owner’s ownership interest payable by the body corporate, in accordance with the judgment, less—
a: the amount that the body corporate can recover under any insurance policy; and
b: any amount paid by a unit owner against whom judgment is given under section 142(5) section 142(6)
4: Any amount recovered from a unit owner under section 142(6)
5: A unit owner who pays to the plaintiff any amount that the owner is liable to pay under this section is entitled to recover that amount as a debt from the body corporate but the body corporate may claim any amount due to it from that owner by way of set-off.
6: For the purposes of this section, principal unit 1972 No 15 s 14(4), (5)
14: Disclosure of information
Disclosure of information by seller of unit
144: Interpretation
In this subpart,— agreement for sale and purchase agreement buyer contain seller settlement date
a: the date on which the buyer pays to the seller the purchase price, or the balance of the purchase price, in exchange for the documents of title; or
b: any other settlement date that may be specified in the agreement for sale and purchase. Section 144 contain inserted 5 December 2013 section 16 Unit Titles Amendment Act 2013
145: Prohibition on contracting out
A provision in any agreement to exclude or limit the obligation to disclose under this subpart is of no effect.
146: Pre-contract disclosure to prospective buyer
1: Before a buyer enters into an agreement for sale and purchase of a unit the seller must provide a disclosure statement (a pre-contract disclosure statement
2: The pre-contract disclosure statement must contain the prescribed information (to the extent that it is capable of being provided in relation to the unit and the development concerned).
3: If the seller does not comply with subsections (1) and (2), the settlement date agreed to in a subsequent agreement for sale and purchase may be delayed in accordance with section 149 section 149A Section 146(2) replaced 9 May 2023 section 30 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 146(3) inserted 9 May 2023 section 30 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
147: Pre-settlement disclosure to buyer
1: This section applies if a buyer and a seller have entered into an agreement for sale and purchase.
2: No later than the fifth working day before the settlement date, the seller must provide a disclosure statement (a pre-settlement disclosure statement
3: The pre-settlement disclosure statement—
a: must contain the prescribed information; and
b: must contain
4: A body corporate may withhold a certificate referred to in subsection (3)(b) if any debt that is due to the body corporate by the unit owner is unpaid. Section 147(3)(b) amended 5 December 2013 section 17 Unit Titles Amendment Act 2013
148: Buyer may request additional disclosure
Section 148 repealed 9 May 2023 section 31 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
149: Buyer may delay settlement if pre-contract disclosure late, incomplete, inaccurate, or not made at all
1: Subsection (2) applies if the seller has not provided a complete and accurate pre-contract disclosure statement to the buyer on a date that is earlier than 5 working days before the settlement date.
2: The buyer may, by notice in writing given on or before the settlement date, delay the settlement date,—
a: if the seller has provided a complete and accurate pre-contract disclosure statement on a date that is later than 5 working days before the settlement date, until the fifth working day after the date on which the pre-contract disclosure statement was provided; and
b: if the seller has provided an incomplete or inaccurate pre-contract disclosure statement or has not provided a pre-contract disclosure statement at all, until the fifth working day after the date on which the seller provides a complete and accurate pre-contract disclosure statement.
3: A buyer who delays the settlement date by giving notice under subsection (2)(b) may, by notice in writing, further delay the settlement date until the fifth working day after the seller provides a complete and accurate statement if—
a: the seller provides a further incomplete or inaccurate pre-contract disclosure statement; or
b: the seller does not provide a complete and accurate pre-contract disclosure statement within 5 working days after the date on which notice was given under subsection (2)(b).
4: The buyer must give notice of further delay,—
a: if subsection (3)(a) applies, within 5 working days of the seller providing the further incomplete or inaccurate pre-contract disclosure statement; or
b: if subsection (3)(b) applies, within 5 working days of the expiry of the period set out in that paragraph.
5: If a buyer gives notice of further delay under subsection (3) and the seller fails to provide the buyer with a complete and accurate pre-contract disclosure statement within 5 working days of the date of that notice, the buyer must, unless the buyer and seller agree otherwise,—
a: cancel the agreement for sale and purchase under section 149A
b: proceed with the agreement for sale and purchase, with settlement—
i: on the date that is 5 working days from the date on which the buyer advises the seller of the election to proceed; or
ii: on a date agreed by the buyer and seller. Section 149 replaced 9 May 2023 section 32 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
149A: Buyer may cancel agreement for sale and purchase if pre-contract disclosure late, incomplete, inaccurate, or not made at all
1: The buyer may cancel the agreement for sale and purchase under this section if—
a: the seller—
i: has not provided a pre-contract disclosure statement to the buyer in accordance with section 146; or
ii: subject to subsection (2), has provided to the buyer a pre-contract disclosure statement that is incomplete or inaccurate; and
b: the buyer does not delay settlement under section 149
2: The buyer may not cancel an agreement for sale and purchase for provision of an incomplete or inaccurate pre-contract disclosure statement before the agreement was entered into if—
a: the disclosure is incomplete or inaccurate but—
i: this was noted by the seller in the disclosure statement by reference to the specific information not provided or the manner in which it was inaccurate; and
ii: the seller confirmed in the pre-contract disclosure statement that the reason for the incomplete disclosure or inaccuracy was that the information (or document containing the information) required to complete or correct the pre-contract disclosure statement did not exist or, despite reasonable efforts, could not be found; or
b: the incomplete or inaccurate information contained in the pre-contract disclosure statement would not have had the effect of—
i: substantially reducing the benefit to the buyer under the agreement for sale and purchase or as a unit owner; or
ii: substantially increasing the burden of the buyer under the agreement for sale and purchase or as a unit owner; or
iii: in relation to the buyer, making the benefit or burden of the agreement for sale and purchase substantially different from that represented or contracted for; or
c: the seller provides the missing information or corrects the inaccuracy in the pre-contract disclosure statement before the buyer gives notice to cancel the contract.
3: Before cancelling an agreement for sale and purchase under this section,—
a: the buyer must, on or before the settlement date, give the seller notice in writing that they intend to cancel the agreement; and
b: the seller has 10 working days from the date the notice under paragraph (a) is given to provide a complete and accurate pre-contract disclosure statement.
4: Whether or not the seller has provided a complete and accurate pre-contract disclosure statement, the buyer must, within 5 working days of the expiry of the period provided by subsection (3)(b),—
a: cancel the agreement for sale and purchase by notice in writing; or
b: proceed with the agreement for sale and purchase, with settlement—
i: on the date that is 5 working days from the date on which the buyer advises the seller of the election to proceed; or
ii: on a date agreed by the buyer and seller. Section 149A inserted 9 May 2023 section 32 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
150: Seller must rectify inaccuracies in disclosure statement
1: This section applies if, before the settlement date, the seller becomes aware that information contained in a disclosure statement given under section 146 147
a: was inaccurate when the disclosure statement was given; or
b: has, since it was given, become inaccurate.
2: The seller must, within 5 working days after the date on which this section begins to apply, or any longer period agreed between the buyer and the seller, give the buyer a statement correcting the inaccuracy.
3: If a statement is given under subsection (2) within the period of 5 working days before the settlement date, the buyer may, by notice in writing, delay Section 150(1) amended 9 May 2023 section 47(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 150(3) amended 9 May 2023 section 47(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
151: Buyer may delay settlement if pre-settlement disclosure late, incomplete, inaccurate, or not made at all
1: Subsection (2) applies if the seller provides a pre-settlement disclosure statement to the buyer on a date that is later than 5 working days before the settlement date but prior to the settlement date.
2: The buyer may, by notice in writing given on or before the settlement date, delay the settlement date until the fifth working day after the date on which the pre-settlement disclosure statement was provided.
3: Subsection (4) applies if, at the close of business on the last working day before the settlement date, the seller has provided an incomplete or inaccurate pre-settlement disclosure statement or has not provided a pre-settlement disclosure statement at all.
4: The buyer may, by notice in writing given on or before the settlement date, delay the settlement date until the fifth working day after the date on which the seller provides a complete and accurate pre-settlement disclosure statement. Section 151 replaced 9 May 2023 section 33 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
151A: Buyer may cancel agreement for sale and purchase if pre-settlement disclosure late, incomplete, inaccurate, or not made at all
1: The buyer may cancel the agreement for sale and purchase under this section if—
a: the seller has not provided a complete and accurate pre-settlement disclosure statement within the time required in section 147
b: the buyer chooses not to delay settlement under section 151
2: Before cancelling an agreement for sale and purchase under this section,—
a: the buyer must, on or before the settlement date, give the seller notice in writing that they intend to cancel the agreement; and
b: the seller has 10 working days from the notice under paragraph (a) being given to fully comply with the seller’s obligations under section 147(3)
3: If the seller has not fully complied with its obligations under section 147(3)
a: cancel the agreement for sale and purchase by notice in writing; or
b: proceed with the agreement for sale and purchase, with settlement—
i: on the date that is 5 working days from the date on which the buyer advises the seller of the election to proceed; or
ii: on a date agreed by the buyer and seller.
4: If the seller has fully complied with their obligations under section 147(3) Section 151A inserted 9 May 2023 section 33 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
152: Further requirements concerning disclosure statements
A disclosure statement given under any of sections 146 147 148 150
153: Buyer may rely on information
The buyer is entitled to rely on the information contained in a disclosure statement given under any of sections 146 147 148 150 Disclosure by original owner of unit title development to body corporate
154: Original owner to give notice when time for turn-over disclosure reached
Immediately after the date that the control period ends, the original owner must give notice to the body corporate that the control period has ended.
155: Body corporate must convene meeting when time for turn-over disclosure reached
The body corporate must hold a general meeting within 3 months from the date on which the original owner gives notice under section 154
156: Turn-over disclosure by original owner to body corporate
1: At the meeting required by section 155
a: a disclosure statement (a turn-over disclosure statement
b: a statement setting out any interest that the original owner or an associate of the original owner has in any contract or arrangement made by the body corporate at any time up to and including the date of the turn-over disclosure statement.
2: The turn-over disclosure statement must be in the prescribed form and contain the prescribed information.
157: Original owner must rectify inaccuracies in information provided under section 156
1: This section applies if, at any time after the turn-over disclosure statement is provided, the original owner becomes aware that information provided under section 156
2: The original owner must, within 5 working days after the date on which this section begins to apply, or any longer period agreed between the original owner and the body corporate, give the body corporate a statement correcting the inaccuracy.
3: The body corporate is entitled to rely on the information contained in that statement as conclusive evidence of the accuracy of the matters described in that statement.
2A: Special provisions for large unit title developments
Part 2A inserted 9 May 2023 section 34 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
157A: Application of this Part
1: This Part applies to a large unit title development.
2: If there is an inconsistency between a provision in this Part and a provision in the rest of the Act (or any regulations made under the Act), the provision in this Part prevails, but only to the extent of the inconsistency.
3: To avoid doubt, except to the extent expressly provided in this Part or as set out in subsection (2), unit title developments to which this Part applies must also comply with all the relevant provisions of the rest of this Act and the regulations. Section 157A inserted 9 May 2023 section 34 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
157B: Employment or engagement of body corporate manager or managers
The body corporate of a large unit title development must employ or engage 1 or more body corporate managers, unless the body corporate, by special resolution, decides not to do so. Section 157B inserted 9 May 2023 section 34 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
157C: Additional requirements regarding long-term maintenance plans
1: The body corporate of a large unit title development must comply with all the requirements of this section.
2: The long-term maintenance plan for the body corporate must—
a: cover a period of at least 30 years from the date of the plan or the last review of the plan; and
b: comply with the requirements and include the matters prescribed by regulations.
3: Regulations may prescribe different requirements and matters to be included in a long-term maintenance plan for different parts of the period described in subsection (2)(a).
4: The long-term maintenance plan for the body corporate must be reviewed in accordance with this section every 3 years.
5: However, if the body corporate becomes aware of any matter that may have a material impact on the long-term maintenance plan, it must review the plan in accordance with this section as soon as practicable (and the date on which the review is conducted becomes the start date from which the next review cycle is calculated).
6: The body corporate must, unless it decides by special resolution not to do so, consult with the building professional or professionals, or other suitably qualified professional or professionals, it considers necessary or appropriate—
a: when it develops the long-term maintenance plan; and
b: when it reviews the plan. Section 157C inserted 9 May 2024 section 34 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
3: Special provisions relating to leasehold land
158: Application of this Part
1: If a deposited unit plan relates to an estate as lessee or licensee in any land, the provisions of this Part apply despite anything contained or implied in the lease or licence or any enactment or rule of law to the contrary.
2: The provisions of this Act other than this Part in so far as they relate to an estate as lessee or licensee in any base land must be read subject to this Part.
3: In this Part, lease lessor lessee 1972 No 15 s 21
159: Preservation of lessor’s interest
1: Neither the deposit of a unit plan to which this Part applies nor any dealing with any unit shown on any such unit plan to which this Part applies may be treated as a severance of the lessor’s reversionary estate in the base land.
2: Subject to this Part, the lessor may deal with the reversionary estate in the base land in all respects as if the unit plan had not been deposited. 1972 No 15 s 22
160: Powers of body corporate in respect of lease
1: Subject to this Part, on the deposit of a unit plan to which this Part applies and until the cancellation of the plan, the body corporate—
a: is entitled to sue and be sued as if it were the lessee under the lease and had all rights, powers, and privileges belonging or appertaining to the lessee under the lease; and
b: becomes subject to and liable for the same requirements and liabilities as those to which it would have been subject and liable if named in the lease originally as lessee of the base land.
2: Despite subsection (1), the body corporate is not entitled to call for the creation of a record of title
3: No cause of action in respect of any breach by the lessor of any covenant, agreement, or stipulation expressed or implied in the lease and on the part of the lessor to be performed or observed lies at the suit of an owner of any unit or the registered owner of any estate or interest in any unit.
4: Subject to section 164 1972 No 15 s 23 Section 160(2) amended 12 November 2018 section 250 Land Transfer Act 2017
161: Dealing with stratum estate in leasehold
Except as provided in sections 30(5)(b) 68(3) 1972 No 15 s 24
162: Restrictions on surrenders and releases
1: After the deposit of a unit plan to which this Part applies, and until the cancellation of the plan,—
a: no owner of a unit may surrender or agree to surrender the stratum estate in leasehold in that unit to the lessor, whether for valuable consideration or otherwise:
b: the lessor must not release or agree to release any unit or the common property or any part of the common property from the lease, whether for valuable consideration or otherwise:
c: subject to section 169
d: subject to section 169
2: Any purported surrender or release in contravention of subsection (1)(a) or (b) is void and of no effect.
3: Nothing in this section prohibits—
a: the body corporate from dealing with the estate as lessee in the common property as a whole or in any part or parts of the common property:
b: all the owners of all the units from surrendering or agreeing to surrender to the lessor the stratum estates in leasehold in all the units:
c: the lessor from releasing or agreeing to release all the units together with the whole of the common property from the lease. 1972 No 15 s 25
163: Implied guarantee by unit owners
1: Each owner for the time being of a unit to which this Part applies must be treated as having guaranteed to the lessor—
a: the payment by the body corporate of the rent reserved under the lease on the days and in the manner prescribed in the lease; and
b: the performance or observance by the body corporate of the covenants, agreements, and stipulations contained or implied in the lease to be performed or observed by the lease.
2: Each owner for the time being of a unit in a subsidiary unit title development, and the subsidiary body corporate,—
a: are bound by the covenants, agreements, and stipulations referred to in subsection (1)(b); and
b: must be treated as having guaranteed to the lessor the performance or observance by the head body corporate of those covenants, agreements, and stipulations.
3: The liability of each owner under the guarantees under subsections (1) and (2)—
a: is limited to the proportion of the rent or other money payable as the ownership interest of that owner’s unit bears to the aggregate ownership interest of all the units shown on the plan; and
b: relates only to rent and other money due or accruing due while he or she is the owner of that unit.
4: None of the following releases, exonerates, or in any way affects the liability of any owner under subsection (1) or (2):
a: neglect or forbearance of the lessor in endeavouring to obtain payment of the rent or other money payable under the lease; or
b: neglect to enforce the performance or observance of the covenants, agreements, or stipulations contained or implied in the lease by the body corporate; or
c: time or other indulgence that may be given to the body corporate by the lessor.
5: If the owner of a unit pays to the lessor any sum that he or she is liable to pay under this section, that owner is entitled to recover the sum from the body corporate as a debt in any court of competent jurisdiction.
6: Nothing in subsection (5) prevents the body corporate from claiming any sum due to it from that owner under the provisions of this Act by way of set-off. 1972 No 15 s 26
164: Exclusion of powers of forfeiture, re-entry, and distress
1: After the deposit of a unit plan to which this Part applies, and until the cancellation of the plan, no right of forfeiture or re-entry (whether for non-payment of rent or otherwise) is exercisable by the lessor.
2: If the owner of any unit becomes liable under section 163
3: Nothing in subsection (2) entitles, empowers, or authorises the lessor to forfeit or determine that owner’s interest under the lease. 1972 No 15 s 27
165: Lessor may apply for appointment of administrator or cancellation of unit plan
1: This section applies if—
a: rent is in arrears for the space of 1 month; or
b: the body corporate has failed to perform or observe any of the covenants, agreements, or stipulations contained or implied in the lease to be performed or observed by the lessee.
2: The lessor may—
a: apply to the High Court for the appointment of an administrator, in which case section 141
b: apply to the High Court for the cancellation of the unit plan, in which case sections 187 188
3: If, on an application made by the lessor under subsection (2)(b), the High Court makes a declaration authorising the cancellation of the unit plan, then, if all conditions and directions imposed or given by the High Court have been complied with,—
a: the lessor may, within 6 months after the date of the declaration, apply to the Registrar for the cancellation of the plan; and
b: section 189 (other than subsection (2))
4: No application may be made under subsection (2)(a) or (b) in respect of a failure described in subsection (1)(b) unless—
a: the lessor serves on the body corporate and the bodies corporate described in section 187(2)(b) and (c)
i: specifying the particular breach complained of; and
ii: if the breach is capable of remedy, requiring the body corporate to make compensation in money for the breach; and
b: the body corporate fails within a reasonable time to remedy the breach, if it is capable of remedy, and to make reasonable compensation in money to the satisfaction of the lessor.
5: If the lessor is applying to the High Court under subsection (2)(b) for the cancellation of the unit plan, the body corporate, and any subsidiary body corporate located below it in a layered unit title development, may apply to the High Court for relief.
6: If the body corporate applies for relief under subsection (5), the High Court, having regard to the conduct of the parties and to all the circumstances of the case, may grant or refuse relief, as it thinks fit.
7: If the High Court grants relief it may grant it on such terms (if any) as to costs, expenses, damages, compensation, penalty, or otherwise, including the granting of an injunction to restrain any like breach in the future, as the High Court in the circumstances of each case thinks fit. 1972 No 15 s 28 Section 165(3)(b) amended 30 May 2017 section 38 Regulatory Systems (Building and Housing) Amendment Act 2017
166: Expiry of lease
1: The term
2: On the cancellation of the unit plan the term of the lease is deemed to expire unless the lessor, in writing, has consented to the cancellation of the plan and agreed that the lease is to continue in force according to its tenor.
3: At any time
a: the lessor; or
b: any persons who are together entitled to exercise more than 25% of the votes on an ordinary resolution of the body corporate.
4: The person or persons intending to lodge a certificate under subsection (3) must give 14 days’ notice in writing to the body corporate before lodging the certificate.
5: On receiving a certificate of expiry, if the Registrar is satisfied that the term of the lease or any extended or renewed term has expired, he or she must—
a: cancel the unit plan; and
b: cancel the record of title
c: enter a memorial to the effect that the lease has expired.
6: If the body corporate has applied to the court for any relief under section 264
7: If the Registrar is served with a copy of an application under subsection (6), the Registrar may not take any action referred to in subsection (5) unless or until the Registrar is satisfied that the application for relief has been withdrawn or refused. 1972 No 15 s 29 Section 166(1) amended 5 December 2013 section 19(1) Unit Titles Amendment Act 2013 Section 166(3) amended 5 December 2013 section 19(2) Unit Titles Amendment Act 2013 Section 166(5) amended 5 December 2013 section 19(3) Unit Titles Amendment Act 2013 Section 166(5)(b) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 166(7) replaced 5 December 2013 section 19(4) Unit Titles Amendment Act 2013
167: Variation of lease, renewal or expiry of lease, or purchase of reversionary interest
1: The body corporate may, by special resolution,—
a: agree to vary the lease (and agree the terms of the variation):
b: in the case of a lease that gives the lessee a right of renewal or extension of the lease, exercise the renewal or extension (and agree the terms applying):
c: in the case of a lease that gives the lessee an option to purchase the reversionary estate in the base land, exercise the option (and agree the terms of the purchase).
2: Sections 212 to 216
3: None of the following has the effect of terminating the unit title development, merging any estate, or discontinuing any easement, covenant, or other registered interest:
a: a variation of lease by agreement:
b: the exercise of a right of renewal or extension of lease:
c: the exercise of an option to purchase the reversionary estate in the base land. Section 167 replaced 30 May 2017 section 39 Regulatory Systems (Building and Housing) Amendment Act 2017
168: Entitlement of lessee to buildings, fixtures, etc
1: This section applies if on the expiry of the lease the lessee is entitled under the lease to an amount equal to the value of the whole or any part of any buildings, fixtures, and other improvements on the base land.
2: Despite section 160
3: Despite subsection (2), if the High Court considers that it is inequitable to apportion the amount referred to in that subsection among the persons referred to in that subsection in those shares it may apportion that amount among them in shares proportionate to the relative values of the units. 1972 No 15 s 30(2)
169: Merger
1: This section applies if—
a: the lessor has purchased or acquired (whether by operation of law or otherwise) the stratum estates in leasehold in all the units shown on the unit plan; or
b: all the owners of all the units shown on the plan have purchased or acquired (whether by operation of law or otherwise) the reversionary estate in the whole of the base land.
2: If the lessor has purchased or acquired the stratum estates in leasehold in all the units shown on the plan, those estates do not merge with the lessor’s reversionary estate in the base land unless and until—
a: the base land is free from all registered interests other than easements or covenants and there are no caveats or notices of claim entered on the register over the whole or any part of the base land; and
b: the lessor deposits with the Registrar a declaration that it is his or her intention that such a merger should occur.
3: If all the owners of all the units shown on the plan have purchased or acquired the reversionary estate in the whole of the base land, that estate does not merge with the stratum estates in leasehold in these units unless and until—
a: that reversionary estate is purchased or acquired by those owners in shares proportional to the ownership interest of their respective units; and
b: the base land is free from all registered interests other than easements or covenants and there are no caveats or notices of claim entered on the register over the whole or any part of the base land; and
c: the registered owners deposit with the Registrar a declaration that it is their intention that a merger should occur.
4: The effect of a merger is as follows:
a: if the lessor has purchased or acquired the stratum estates in leasehold in all of the units shown on the plan, the stratum estate in freehold in each of the units vests in the lessor:
b: if all the registered owners of the stratum estates in leasehold in all of the units shown on the plan have purchased or acquired the reversionary estate in the base land, the stratum estate in freehold in each of the units vests in the person who immediately before the merger was the owner of that unit:
c: the lease is extinguished:
d: any easement or covenant of a kind to which section 62
e: any registered interest, and any caveat or notice of claim existing on a computer register for the stratum estate in leasehold in a unit, continues over the whole or part of the stratum estate in freehold in the unit.
5: On the deposit of any declaration under subsection (2)(b) or (3)(c), the Registrar, if satisfied that the stratum estates in leasehold in all of the units shown on the plan have merged under the provisions of this section with the reversionary estate in the base land, must—
a: note on the supplementary record sheet a memorial of the merger; and
b: enter on the existing record of title
c: cancel the existing record of title record of title
d: in the case of any registered interest, caveat, or notice of claim existing on a record of title for the stratum estate in leasehold in a unit immediately before cancellation, enter that registered interest, caveat, or notice of claim on the new record of title for the stratum estate in freehold for that unit; and
e: cancel the existing record of title for the base land.
6: The merger has no effect on any easement or covenant to which the base land is subject or on any easement or covenant that is appurtenant to the base land.
7: Sections 60 61 1972 No 15 s 31 Section 169(2) replaced 30 May 2017 section 40 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 169(3) replaced 30 May 2017 section 40 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 169(4) replaced 30 May 2017 section 40 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 169(5) replaced 30 May 2017 section 40 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 169(5)(b) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 169(5)(c) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 169(6) inserted 30 May 2017 section 40 Regulatory Systems (Building and Housing) Amendment Act 2017 Section 169(7) inserted 30 May 2017 section 40 Regulatory Systems (Building and Housing) Amendment Act 2017
170: Owner of future development unit member of body corporate for purpose of this Part
The owner of a future development unit in a unit title development to which this Part applies is to be treated as a member of the body corporate for the purposes of the provisions of this Part, and those provisions apply as if—
a: the unit were a principal unit; and
b: the ownership interest of the unit were equivalent to the aggregate ownership interest of all the units into which it is proposed eventually to subdivide the future development unit, as shown on the proposed development plan. 1979 No 37 s 9(5)
4: Disputes, cancellation, and conversion
1: Disputes
171: Jurisdiction of Tenancy Tribunals
1: Except as provided in this section, a Tenancy Tribunal (a Tribunal section 67 unit title dispute
1AA: To avoid doubt, the Limitation Act 2010
1A: To avoid doubt, and without limiting subsection (1), a unit title dispute may relate to a claim for unpaid levies.
2: The persons mentioned in subsection (1) are—
a: the owner of a principal unit or a former owner of a principal unit:
b: a future development unit owner:
c: an occupier of a future development unit:
d: a body corporate:
da: a body corporate manager:
e: an administrator:
f: a registered valuer:
g: an occupier of a principal unit:
h: a service contractor:
ha: a party to a signage agreement:
i: a prospective buyer of a principal unit:
j: an original owner:
k: a lessor of base land:
l: the chief executive.
3: Any person listed in subsection (2) may, by notice in writing to the Tribunal, appoint an agent to act on his or her or its behalf in relation to a dispute.
3A: Without limiting the provisions of the Residential Tenancies Act 1986 section 176
a: order any party to do anything necessary to remedy a breach by that party of an obligation arising under this Act, the body corporate operational rules, or any agreement that is binding on the party and relevant to the unit title dispute:
b: order any party to refrain from doing anything that would constitute a breach of an obligation arising under this Act, the body corporate operational rules, or any agreement that is binding on the party and relevant to the unit title dispute:
ba: make orders for a person to pay a pecuniary penalty under sections 176B to 176E
c: make any supplementary orders of a consequential or ancillary nature necessary to exercise or perfect the exercise of any of its jurisdiction:
d: determine objections to improvement notices under section 176J
4: The Tribunal does not have jurisdiction—
a: to make an order requiring any person or body to pay any sum, or to do any work to a value, or otherwise incur expenditure, in excess of $100,000
b: to hear a dispute relating to the application of insurance money under section 136(4)
c: to hear any dispute relating to the title of land.
5: Without limiting subsection (4)(c), a dispute relating to the title of land includes—
a: a redevelopment:
b: cancellation of a unit plan:
c: conversion under subpart 3
6: An order of the Tribunal that exceeds any restriction specified in subsection (4) is of no effect.
7: Subsection (4)(a) does not prevent a party to a unit title dispute from abandoning as much of the claim as exceeds $100,000
8: The Tribunal has jurisdiction to hear and determine any claim arising under any unit title dispute that is a claim for the balance, not exceeding $100,000
9: A cause of action must not be divided into 2 or more claims for the purpose of bringing it within the jurisdiction of the Tribunal. Section 171(1AA) inserted 9 May 2023 section 35(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 171(1A) inserted 5 December 2013 section 20(1) Unit Titles Amendment Act 2013 Section 171(2)(da) inserted 9 May 2023 section 35(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 171(2)(ha) inserted 9 May 2023 section 35(3) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 171(3A) inserted 5 December 2013 section 20(2) Unit Titles Amendment Act 2013 Section 171(3A)(ba) inserted 9 May 2024 section 35(4) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 171(3A)(d) inserted 9 May 2024 section 35(5) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 171(4)(a) amended 9 May 2023 section 35(6) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 171(7) amended 9 May 2023 section 35(7) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 171(8) amended 9 May 2023 section 35(8) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
172: Jurisdiction of District
Court
1: The District Court $100,000 $350,000
2: In addition to the jurisdiction conferred under subsection (1), the District Court section 136(4)
3: The District Court
4: Any provision of any agreement that purports to exclude or limit the jurisdiction of the District Court is of no effect. Section 172 heading amended 1 March 2017 section 261 District Court Act 2016 Section 172(1) amended 9 May 2023 section 36 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 172(1) amended 1 March 2017 section 261 District Court Act 2016 Section 172(2) amended 1 March 2017 section 261 District Court Act 2016 Section 172(3) amended 1 March 2017 section 261 District Court Act 2016
173: Jurisdiction of High Court
1: The High Court has jurisdiction to hear and determine any unit title dispute if—
a: the order sought requires any person or body to pay any sum, or to do any work to a value, or otherwise incur expenditure, in excess of $350,000
b: the dispute relates to the title of land.
1A: In addition to the jurisdiction conferred under subsection (1), the High Court also has jurisdiction to hear and determine a unit title dispute relating to the application of insurance money under section 136(4)
2: Any provision of any agreement that purports to exclude or limit the jurisdiction of the High Court is of no effect. Section 173(1)(a) amended 1 March 2017 section 261 District Court Act 2016 Section 173(1A) inserted 5 December 2013 section 21 Unit Titles Amendment Act 2013
174: Exclusion of Tribunal’s jurisdiction prohibited
1: A provision in any agreement entered into by any of the persons listed in section 171(2)
2: Without limiting the generality of subsection (1), the Tribunal has jurisdiction in respect of a dispute despite any agreement relating to the matter that provides for—
a: the submission to arbitration of any dispute or difference; or
b: the making of an award on the submission to be a condition precedent to any cause of action accruing to a party to the agreement.
3: Subsection (2)(b) does not apply if a cause of action has accrued or is believed to have accrued to a person and that person has agreed to the settlement or compromise of the claim based on that cause of action.
175: Transfer of proceedings to District Court or High Court
1: If any proceedings have been commenced before the Tribunal that the Tribunal has no jurisdiction to hear and determine, the Tribunal may, instead of striking out the proceedings, order that they be transferred to either the District Court or the High Court, depending on which court has jurisdiction to determine the dispute.
2: Any proceedings transferred under subsection (1) are to be treated as having been commenced in the court to which the proceedings have been transferred and are to be dealt with by that court accordingly. 1986 No 120 s 83
176: Certain provisions of Residential Tenancies Act 1986 to apply
1: Part 3
a: section 77
aa: section 78A
ab: section 95A(1), (2), (3), and (6)
b: section 106
ba: section 108(2B)
c: section 109
d: sections 109B to 109E
1A: For the purposes of subsection (1), reasonable costs referred to in section 102(3)(b) section 176A
2: Without limiting subsection (1), every reference in Part 3 this Act the Unit Titles Act 2010 OIC (SR 2011/121) 2011-06-20 Residential Tenancies Act 1986 176(2) above requires “pursuant to” amendments to be made to Part 3 of the Residential Tenancies Act 1986. But go cautiously and check with JP, especially if the Act hasn't been officialised. Make sure that the change makes sense (CB). Section 176(1)(aa) inserted 27 August 2019 section 25(2) Residential Tenancies Amendment Act 2019 Section 176(1)(ab) inserted 11 February 2021 section 82 Residential Tenancies Amendment Act 2020 Section 176(1)(ba) inserted 11 February 2021 section 82 Residential Tenancies Amendment Act 2020 Section 176(1)(d) inserted 11 February 2021 section 82 Residential Tenancies Amendment Act 2020 Section 176(1A) inserted 9 May 2024 section 37 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
176A: Principles and rules for determination of reasonable legal costs
1: The Governor-General may, by Order in Council, make regulations prescribing principles and rules for the determination of reasonable costs that are legal costs for the purpose of section 102(3)(b)
2: In this section and in section 176 disbursement
a: means an expense paid or incurred for the purposes of a proceeding that would ordinarily be charged for separately from legal professional services in a solicitor’s bill of costs; and
b: includes—
i: fees of the Tribunal for the proceeding:
ii: expenses of serving documents for the purposes of the proceeding:
iii: expenses of photocopying documents required by a direction of the Tribunal:
iv: expenses of conducting a conference by telephone or video link; but
c: does not include counsel’s fees legal costs
3: Regulations made under this section are secondary legislation ( see Part 3 Legislation Act 2019 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 176A inserted 9 May 2024 section 38 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
176B: Tribunal may make pecuniary penalty orders
1: The Tribunal may, on the application of the chief executive, order a body corporate manager to pay to the Crown the pecuniary penalty that the Tribunal determines to be appropriate if the Tribunal is satisfied that—
a: the body corporate manager has intentionally and without reasonable excuse breached their duty—
i: under section 114I(1)
ii: under section 114I(2)
b: the breach of duty has materially and negatively impacted on 1 or more individual unit owners or the body corporate as a whole.
2: The Tribunal may, on the application of the chief executive, order a body corporate or a body corporate manager to pay to the Crown the pecuniary penalty that the Tribunal determines to be appropriate if the Tribunal is satisfied that the body corporate, the body corporate manager, or both have intentionally and without reasonable excuse—
a: failed to comply with the requirement to produce documents under section 202A(3)
b: obstructed or hindered an authorised person in exercising the power of entry to a unit title development under section 202B(1)(b)
c: failed to comply with an improvement notice issued under section 176F
3: The chief executive may not make an application under subsection (1) or (2) later than 12 months from the date on which the chief executive first became aware of the breach of this Act. 1986 No 120 s 109B Section 176B inserted 9 May 2024 section 38 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
176C: Maximum amount of pecuniary penalty
The maximum amount of pecuniary penalty for a breach of this Act is,—
a: for a breach referred to in section 176B(1)
b: for a breach referred to in section 176B(2)(a)
c: for a breach referred to in section 176B(2)(b) or (c) 1986 No 120 s 109C Section 176C inserted 9 May 2024 section 38 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
176D: Considerations for Tribunal in determining pecuniary penalty
In determining an appropriate pecuniary penalty, the Tribunal must have regard to all relevant matters, including—
a: the nature and extent of the breach of this Act; and
b: the nature and extent of any loss or damage suffered as a result of the breach; and
c: any gains made or losses avoided by the body corporate or the body corporate manager as a result of the breach; and
d: the circumstances in which the breach took place. 1986 No 120 s 109D Section 176D inserted 9 May 2024 section 38 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
176E: Only 1 pecuniary penalty order may be made for same conduct
1: If conduct by a body corporate constitutes a breach of 2 or more provisions of this Act, proceedings may be brought against that body corporate for the conduct under any 1 or more of the provisions, but no body corporate is liable to more than 1 pecuniary penalty order for the same conduct.
2: If conduct by a body corporate manager constitutes a breach of 2 or more provisions of this Act, proceedings may be brought against that body corporate manager for the conduct under any 1 or more of the provisions, but no body corporate manager is liable to more than 1 pecuniary penalty order for the same conduct. 1986 No 120 s 109E Section 176E inserted 9 May 2024 section 38 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
1A: Improvement notices
Subpart 1A heading inserted 9 May 2024 section 39 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
176F: Power to issue improvement notices
1: This section applies if the chief executive reasonably believes that a person—
a: is contravening a provision of this Act or of regulations made under this Act; or
b: is likely to contravene a provision of this Act or of regulations made under this Act.
2: The chief executive may issue an improvement notice requiring the person to—
a: remedy the contravention; or
b: prevent a likely contravention from occurring; or
c: remedy the things or activities causing the contravention or likely to cause a contravention. 1986 No 120 s 126H Section 176F inserted 9 May 2024 section 39 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
176G: Content of improvement notices
1: An improvement notice must state—
a: that the chief executive believes the person—
i: is contravening a provision of this Act or of regulations made under this Act; or
ii: is likely to contravene a provision of this Act or of regulations made under this Act; and
b: the provision the chief executive believes is being, or is likely to be, contravened; and
c: briefly, how the provision is being, or is likely to be, contravened; and
d: a reasonable period within which the person is required to remedy—
i: the contravention or likely contravention; or
ii: the things or activities causing the contravention or likely to cause a contravention.
2: An improvement notice may include recommendations concerning—
a: the measures that could be taken to remedy the contravention, or prevent the likely contravention, to which the notice relates:
b: the things or activities causing the contravention, or likely to cause a contravention, to which the notice relates. 1986 No 120 s 126I Section 176G inserted 9 May 2024 section 39 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
176H: Extension of time for compliance with improvement notices
1: This section applies if a person has been issued with an improvement notice.
2: The chief executive may, by written notice given to the person, extend the compliance period for the improvement notice.
3: However, the chief executive may extend the compliance period only if the period has not ended.
4: In this section, compliance period
a: means the period stated in the improvement notice under section 176G(1)(d)
b: includes any extension of that period under this section. 1986 No 120 s 126K Section 176H inserted 9 May 2024 section 39 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
176I: Chief executive may withdraw improvement notice
1: The chief executive may withdraw an improvement notice.
2: The withdrawal of an improvement notice does not prevent another improvement notice from being served in relation to the same matter. 1986 No 120 s 126L Section 176I inserted 9 May 2024 section 39 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
176J: Objection to improvement notice
1: A person who has been issued with an improvement notice may file an objection with the Tribunal.
2: An objection must be filed with the Tribunal within 28 days after the date on which the improvement notice was served on the person.
3: In determining the objection, the Tribunal must consider—
a: whether the person has failed, or is likely to fail, to comply with the specified provision of this Act or of regulations made under this Act; and
b: the nature and extent of the failure or likely failure to comply with the provision; and
c: the nature and extent of any loss suffered by any other person specified in section 171(2)
4: The Tribunal may confirm, vary, or rescind the improvement notice as the Tribunal thinks fit. 1986 No 120 s 126M Section 176J inserted 9 May 2024 section 39 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
2: Cancellation of unit plans
Cancellation of unit plans by Registrar
177: Application by body corporate for cancellation of unit plan
1: The body corporate for a unit title development may apply to the Registrar for the cancellation of the unit plan that relates to that unit title development.
2: The application must be made in the prescribed form.
3: Before making an application under subsection (1), the body corporate—
a: must agree by special resolution to the cancellation; and
b: must—
i: arrange for an assessment of the ownership interests and proposed ownership interests (if any) of all the units in the unit title development by a registered valuer, and assign the reassessed interests to the relevant units; or
ii: decide, by a special resolution that sets out the reason for the decision, not to reassess the ownership interests and proposed ownership interests (if any). Example
The special resolution records that a body corporate has decided not to reassess the ownership interests and proposed ownership interests on the basis that they were recently reassessed for and assigned to all units.
4: Sections 212 to 216
5: Before making the application for cancellation of the unit plan, the body corporate must (in addition to complying with section 213(1)
a: serve a copy of the draft application on—
i: every unit owner; and
ii: every person who has a registered interest in, or caveat or notice of claim entered on the register over, any unit or the common property; and
b: if the unit title development is a stratum estate in leasehold, serve a copy of the resolution under subsection (3)(a)
6: In relation to the resolution under subsection (3)(a), in addition section 216
a: the documents required by subsection (5) to be served have been served on the persons specified in that subsection; and
b: if an objection was made under section 213
c: all rates assessed in respect of the units and the common property have been paid.
7: The application for cancellation of the unit plan must be accompanied by—
a: a certificate from a registered valuer showing the ownership interests and proposed ownership interests (if any) reassessed for all the units in the unit title development; or
b: the certificate required under section 216 Section 177(3) replaced 30 May 2017 section 41(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 177(5)(b) amended 30 May 2017 section 41(2) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 177(6) amended 30 May 2017 section 41(3) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 177(7) replaced 30 May 2017 section 41(4) Regulatory Systems (Building and Housing) Amendment Act 2017
178: Restriction on cancellation of unit plan if subsidiary unit title development exists
No unit plan may be cancelled if a principal unit in the unit title development contains a subsidiary unit title development.
179: Cancellation of unit plan by Registrar
The cancellation of a unit plan is effected when the Registrar has entered the cancellation on the supplementary record sheet or any other appropriate record.
180: Effect of cancellation of unit plan: standard unit title development or head unit title development
1: This section applies to a unit plan for a standard unit title development or a head unit title development.
2: On the cancellation of the unit plan,—
a: the following estates are merged and vested in the persons who were the owners of the units immediately before the cancellation in shares proportional to what was, at that time, their ownership interest:
i: the fee simple estate, or (as the case may be) the estate as lessee or licensee, that was held by the body corporate in that part of the base land that immediately before the cancellation comprised common property; and
ii: the fee simple estate, or (as the case may be) the estate as lessee or licensee, in that part of the base land that immediately before the cancellation comprised units:
b: every easement or covenant to which section 60
c: except as provided in paragraph (d) section 62
d: every easement or covenant over any unit and every easement or covenant appurtenant to a unit is cancelled.
3: This section is subject to section 182
181: Effect of cancellation of unit plan for subsidiary unit title development
1: In this section, a reference to the principal unit
2: On the cancellation of the unit plan,—
a: the following estates are merged and vested in the persons who were the owners of the units immediately before the cancellation in shares proportional to what was, at that time, their ownership interest:
i: the fee simple estate, or (as the case may be) the estate as lessee or licensee, that was held by the subsidiary body corporate in that part of the principal unit that immediately before the cancellation comprised common property; and
ii: the fee simple estate, or (as the case may be) the estate as lessee or licensee, in that part of the principal unit that immediately before the cancellation comprised units:
b: except as provided in paragraph (c), an easement or covenant of a kind referred to in section 62 record of title
c: every easement or covenant over any unit and every easement or covenant appurtenant to a unit is cancelled.
3: This section is subject to section 182 Section 181(2)(b) amended 12 November 2018 section 250 Land Transfer Act 2017
182: Effect of cancellation of stage unit plan
1: If a stage unit plan for a standard unit title development or a head unit title development is cancelled, the estates described in section 180(2)(a)(i) and (ii)
2: If a stage unit plan for a subsidiary unit title development is cancelled, the estates described in section 181(2)(a)(i) and (ii)
3: The estates referred to in subsections (1) and (2) vest—
a: as to 1 undivided share in each person who was the owner of a future development unit immediately before the cancellation of the plan; and
b: as to 1 undivided share in all the persons who were the owners of the units (other than future development units) immediately before the cancellation of the plan.
4: A share referred to in subsection (3)(a) is to be in the proportion that the total of all the proposed ownership interests of the proposed principal units and proposed accessory units in the future development unit (as reassessed if section 177(7)(a)
5: As between themselves, the persons who are entitled to 1 undivided share in the relevant estates under subsection (3)(b) are entitled in shares proportional to what was, immediately before the cancellation of the plan, their ownership interest. Section 182(4) amended 30 May 2017 section 43 Regulatory Systems (Building and Housing) Amendment Act 2017
183: Extinguishment of registered interests, etc
1: This section applies if an application is made under section 177 sections 177(6) and (7) and 216
2: Every registered interest in, or caveat or notice of claim entered on the register over, any unit or the common property is extinguished.
3: Nothing in subsection (2) extinguishes an easement or covenant of a kind that will, under section 180(2)(b) or (c) 181(2)(b)
4: The Registrar must make the necessary entries on the register to give effect to the extinguishment under subsection (2). Section 183(1) replaced 30 May 2017 section 44 Regulatory Systems (Building and Housing) Amendment Act 2017
184: Vesting of share where 2 or more owners of unit
1: If 2 or more persons were the owners of any unit in a standard unit title development or head unit title development, whether as joint tenants or tenants in common, the share in the base land that vests in them under section 180 182
a: as joint tenants, if the unit of which they were the owners immediately before the cancellation was then vested in them as joint tenants:
b: as tenants in common in shares corresponding to the shares in which the unit of which they were the owners was vested in them immediately before the cancellation, if that unit was then vested in them as tenants in common.
2: If 2 or more persons were the owners of any unit in a subsidiary unit title development, whether as joint tenants or tenants in common, the share in the principal unit that vests in them under section 181 182
a: as joint tenants, if the unit of which they were the owners immediately before the cancellation was then vested in them as joint tenants:
b: as tenants in common in shares corresponding to the shares in which the unit of which they were the owners was vested in them immediately before the cancellation, if that unit was then vested in them as tenants in common.
3: If subsection (1) applies, the Registrar must create a record of title section 180(2) 182
4: If subsection (2) applies, the Registrar must create a record of title section 181 182 Section 184(3) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 184(4) amended 12 November 2018 section 250 Land Transfer Act 2017
185: Body corporate dissolved when unit plan cancelled
1: On the cancellation of a unit plan, the body corporate is dissolved.
2: Unless otherwise determined beforehand by the body corporate by special resolution,—
a: the following funds of the body corporate must be distributed among the unit owners on the same basis on which levies were paid into those funds immediately before cancellation according to section 121
i: the capital improvement fund:
ii: the long-term maintenance fund:
iii: the optional contingency fund:
iv: the operating account; and
b: all other property and money (including insurance money received by the body corporate) must, subject to any right of set-off, be distributed among the unit owners according to their ownership interests immediately before the cancellation.
3: Despite subsection (1), the body corporate must be treated as remaining in existence to the extent that any debt is owing by it and in respect of any action pending against it, and the liability of the persons who were the unit owners immediately before the cancellation continues accordingly.
186: Recording of cancellation of unit plan
1: The Registrar must, on cancelling a unit plan, give notice to the territorial authority (as defined in the Local Government Act 2002
2: The Registrar must also cancel the relevant supplementary record sheet.
3: If a subsidiary unit title development is cancelled, the Registrar must note the cancellation on the supplementary record sheet for the parent unit title development. 1972 No 15 s 45 Cancellation of unit plans by High Court
187: Application to High Court for order of cancellation of unit plan
1: Any 1 or more of the following persons may apply to the High Court for the cancellation of the unit plan:
a: the body corporate for the unit title development to which the unit plan relates, after a special resolution to do so; or
b: an administrator; or
c: 1 or more unit owners.
2: The applicant must serve a notice of any application made under subsection (1) on—
a: every unit owner; and
b: if a principal unit in the unit title development is a subsidiary unit title development, the body corporate of that subsidiary unit title development; and
c: if the unit title development is a subsidiary unit title development, the body corporate of its parent unit title development; and
d: any person having an interest in any easement or covenant of a kind referred to in section 60 62
e: every other person who has a registered interest in, or caveat or notice of claim entered on the register over, any unit, the common property, or the base land; and
f: any insurer who has effected insurance on the buildings or other improvements comprised in any unit or on the base land or any part of the base land; and
g: the Registrar.
3: The Registrar must enter on the supplementary record sheet a notification that the application has been made.
4: Any notification entered under subsection (3) must be cancelled by the Registrar if the applicant lodges a notice in the prescribed form with the Registrar that—
a: the application to the High Court is not proceeding; or
b: the High Court has refused to make the declaration sought.
188: Cancellation of unit plan by High Court
1: The persons described in paragraphs (a) to (f) of section 187(2)
2: The High Court may authorise that the unit plan be cancelled if—
a: the High Court is satisfied that it is just and equitable that the body corporate be dissolved and the plan cancelled having regard to—
i: the rights and interests of any creditor of the body corporate; and
ii: the rights and interests of every person who has any interest in any unit or in the base land or in any part of the base land; and
b: no principal unit in the unit title development to which the plan relates contains a subsidiary unit title development.
3: If the High Court makes a declaration authorising the cancellation of a unit plan under subsection (2), the High Court may by order impose any conditions and give any directions as it thinks fit, for the purpose of giving effect to the declaration, including—
a: directions for the payment of money by or to the body corporate; or
b: the distribution of the assets of the body corporate; or
c: a direction to modify or extinguish, in whole or in part, any registered interest or caveat or notice of claim entered on the register in relation to any unit, the common property, or the base land.
4: The High Court may, at any time before the unit plan is cancelled under section 189
5: The High Court may make any order for payment of costs as it thinks fit. 1972 No 15 s 46
189: Cancellation of plan following decision of High Court
1: This section applies if—
a: the High Court has made a declaration under section 188
b: all conditions and directions imposed or given by the High Court have been complied with.
2: Any applicant for the declaration or the applicant’s successor in title may
3: The application—
a: must be in the prescribed form; and
b: must be accompanied by or have lodged in support of it a copy of every declaration or order made by the High Court under section 188
c: must be accompanied by a certificate given by the applicant or the applicant’s successor in title certifying that all conditions and directions imposed or given by the High Court have been complied with.
4: If an application is made in accordance with subsection (3), the Registrar must cancel the plan.
5: The following provisions apply when an application is made to the Registrar under this section:
a: a certificate must be given to the Registrar certifying as to the matters set out in paragraphs (a) to (c) section 177(6)
aa: the application must be accompanied by a certificate from a registered valuer showing the ownership interests and proposed ownership interests (if any) reassessed for all the units in the unit title development, unless the High Court directs otherwise:
b: sections 180 181 182 184
c: sections 185 186 1972 No 15 s 47(4) Section 189(2) amended 30 May 2017 section 45(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 189(3) replaced 30 May 2017 section 45(2) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 189(5)(aa) inserted 30 May 2017 section 45(3) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 189(5)(b) amended 30 May 2017 section 45(4) Regulatory Systems (Building and Housing) Amendment Act 2017
190: Owner of future development unit member of body corporate for purposes of sections 177 to 189
For the purposes of sections 177 to 189 1979 No 37 s 9
3: Conversion of existing schemes
191: Application and interpretation of this subpart
1: This Act applies, subject to this subpart, where an application to deposit a unit plan is contemplated in respect of an estate in land if—
a: that estate is held by—
i: a registered owner to which subpart 6
ii: registered owners registered owners the owner registered owners registered owner registered owner
b: the boundaries of the principal units (as they would be according to the unit plan if it were deposited) are exactly the same as the boundaries under—
i: the licences granted in connection with the ownership by the flat or office owning company; or
ii: the lease described in paragraph (a)(ii).
2: In this subpart, unless the context otherwise requires,— company member Part 2 section 96 owners registered owners 1972 No 15 s 56 Section 191(1)(a)(i) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 191(1)(a)(ii) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 191(2) owners amended 12 November 2018 section 250 Land Transfer Act 2017
192: Conversion to be preceded by resolution or High Court order
Before an application is made in accordance with this subpart to deposit a unit plan,—
a: there must be either a resolution of 75% of the members of the company or of the owners to subdivide its or their land in accordance with this Act, or an order of the High Court made under section 193
b: notice of the intention to subdivide the land must have been given in accordance with section 195 1972 No 15 s 57
193: Application to High Court if special resolution not obtained
1: If, at a meeting held for the purpose, the resolution required by section 192(a)
2: Notice of the application must be given to any member of the company or owner who is not a party to the application and to any other person having any registered interest in the land or shares affected by the application.
3: Any person having or claiming to have an estate or interest in the land or in any part of the land to which the unit plan is intended to relate, or in the shares affected by the application, has the right to be heard in any proceedings before the High Court in respect of the application.
4: The High Court may grant the application subject to any conditions that it thinks fit, or may decline the application. 1972 No 15 s 58
194: Resolution or order to constitute sufficient authority for action by company or owners
A resolution by 75% of the members of an existing company or the owners to subdivide its or their land in accordance with this Act, or an order of the High Court made under section 193 1972 No 15 s 59
195: Notice of resolution or order
1: As soon as practicable after the passing of the resolution or the making of an order, the company or owners (as the case may be) must cause the resolution or order to be notified—
a: to all persons, other than the members of the company or the owners, having a registered interest in any shares or assets of the company, or in any of the land intended to be included in the subdivision, or shown in the register to be entitled to such an interest; and
b: to the Registrar, who must at the same time be given by the company or the owners the particulars and things specified in subsection (2); and
c: in the case of a company, to the Registrar of Companies, who must at the same time be given by the company the particulars and things specified in subsection (2).
2: The notice to the Registrar or the Registrar of Companies must be accompanied by—
a: a sealed copy of the order in any case where an order has been made; and
b: a list of the persons on whom notice has been served, together with advice of delivery or other evidence of proper service of the notice on all interested parties as the Registrar may require; and
c: a description of the land intended to be included in the scheme sufficient for the Registrar to identify it in the Registrar’s records.
3: The notice must state that it is the intention of at least 75% of the members of the company or the owners or the High Court has made an order under section 193 Land Transfer Act 2017
4: On receipt by the Registrar of notice of the resolution or order under this section, the Registrar must make an entry on each record of title 1972 No 15 s 60(1)–(3), (7) Section 195(3) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 195(4) amended 12 November 2018 section 250 Land Transfer Act 2017
196: Procedure where caveat lodged
1: If a caveat has been lodged under section 195(3) section 197(2)
2: If the caveator fails to apply to the High Court for an order within the 3-month period, and to consent, the caveator is to be treated as having consented to the unit plan.
3: On application to the High Court by a caveator under this section, the High Court may—
a: direct that the caveat not be removed; or
b: direct that the caveat be removed either immediately or on compliance with any conditions as the High Court may specify.
4: If the circumstances in which the order was made subsequently change before the caveat is removed, the company or any owner or the caveator may apply to the High Court for a variation of the order. 1972 No 15 s 60(4)–(6)
197: Consents to deposit of plan
1: Despite anything in section 32(1)(d) section 195
2: If any person, having lodged a caveat pursuant to section 195
3: No unit plan may be deposited unless every member of the company or the owner, or the owner’s agent duly authorised in writing, and every person having security over any unit shown on the plan under any mortgage or charge to which section 198(2)
a: is satisfied that it would not be reasonable in any particular circumstances to insist on the consent to the deposit of the plan; and
b: has no reason to believe that the plan does not correctly define the unit of that member or owner.
4: If any person whose consent is required to the deposit of the new unit plan is dead or cannot be found or refuses to consent or does not consent within a reasonable time or if for any reason it is impracticable to obtain the consent of that person, the High Court, on the application of any applicant under this subpart, may if it thinks fit consent on behalf of that person to the deposit of the plan. 1972 No 15 s 62
198: Mortgages and charges to be discharged before deposit of unit plan
1: No unit plan may be deposited under this subpart while the land to which it relates or any part of that land is subject to any mortgage or charge unless the mortgage or charge relates to no land shown on the plan other than a proposed unit or units in respect of which (under section 43(2) record of title
2: If a unit plan is deposited in accordance with subsection (1) while there is a mortgage or charge over the unit or units for which (under section 43(2) record of title record of title record of title record of title 1972 No 15 s 63 Section 198(1) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 198(2) amended 12 November 2018 section 250 Land Transfer Act 2017
199: Effect of deposit of unit plan
1: On the deposit of a unit plan under this subpart, the stratum estate in each unit vests in the person who, immediately before the plan was deposited, was the holder of shares in the company entitling him or her to the exclusive occupation of that unit, or the lessee under a lease of that unit from the owners to himself or herself. The stratum estate may then devolve or be transferred, leased, mortgaged, settled, or otherwise dealt with as provided in this Act.
2: On the deposit by a company of a unit plan, the company, if it is a company within the meaning of section 2
3: On the deposit, whether by a company or by the owners, of a unit plan in accordance with this subpart,—
a: every certificate relating to shares in the company, and every copy of every registered or unregistered lease or licence granted by the company to one of its members or granted by the owners to one of them, is of no further effect:
b: except as otherwise provided in this section, all property, rights, powers, claims, and remedies belonging to the company, or to the owners as registered owners the registered owners
c: all existing liabilities of the company (except liability to its members in respect of share capital), or of the owners registered owners
d: except so far as they are altered or modified expressly or by necessary implication by reason of the deposit of the unit plan under this Act, the rights, interests, duties, obligations, and liabilities of the members of the company existing in relation to the company immediately before its dissolution continue in existence in relation to the body corporate and must not be otherwise affected or abated by the dissolution:
e: all acts, matters, and things of a continuing nature made, done, or commenced by or on behalf of the company and immediately before its dissolution of any force or effect or capable of acquiring any force or effect are deemed to have been done or commenced by or on behalf of the body corporate:
f: any reference to the company in any document or instrument must, if not inconsistent with the context or subject-matter, be read as a reference to the body corporate.
4: Nothing in subsection (3)(c) affects a mortgage or charge to which section 198(2) 1972 No 15 s 64 Section 199(3)(b) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 199(3)(c) amended 12 November 2018 section 250 Land Transfer Act 2017
200: Creation of
record of title
1: On the deposit of the unit plan, the Registrar must—
a: cancel the record of title
b: create a record of title
2: Every record of title record of title Land Transfer Act 2017
3: If the record of title section 95(3) to (5) record of title
4: The provisions of section 7(2) and (3) record of title 1972 No 15 s 65 Section 200 heading amended 12 November 2018 section 250 Land Transfer Act 2017 Section 200(1)(a) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 200(1)(b) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 200(2) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 200(3) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 200(4) amended 12 November 2018 section 250 Land Transfer Act 2017
5: General provisions
1: Administration
201: Chief executive responsible for administration of Act
The chief executive is responsible for the administration of this Act. 1986 No 120 s 121
202: General functions and powers of chief executive
1: For the purposes of this Act, the chief executive may perform and exercise the following functions and powers:
a: the investigation of, and the conduct of research into, any matters generally affecting or that may affect unit titles, or any such matters arising in any particular case:
b: the publication of reports, the dissemination of information, and the taking of such steps as the chief executive thinks proper for informing members of the public about the general operation of this Act and of the rights and obligations of bodies corporate, owners, managers, occupiers, and other persons with an interest in any unit title development:
c: the giving of opinions and advice to persons on any provisions of this Act or of any other enactment or rule of law relating to unit title developments:
ca: the monitoring and assessing of compliance by bodies corporate and body corporate managers with this Act:
d: the investigation, whether on the complaint of a party or not, of any alleged breach of this Act, and the taking of such action, whether involving legal proceedings, negotiation, or arbitration, as the chief executive thinks proper:
e: the making of reports to the Minister on any matter relating to unit titles that the Minister may require, or that the chief executive thinks should be drawn to the attention of the Minister.
2: Except as required by the Minister under subsection (1)(e), whether or not to perform or exercise any of the functions and powers specified in that subsection in any particular case is a matter for the chief executive’s discretion, and in no circumstance is the chief executive obliged to perform or exercise any such function or power. 1986 No 120 s 123 Section 202(1)(ca) inserted 9 May 2024 section 40 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
202A: Documents to be retained by body corporate and body corporate manager and produced to chief executive if required
1: A body corporate and a body corporate manager must retain any prescribed documents (or copies of them) for at least 3 years.
2: The chief executive may, by notice in writing, require a body corporate or body corporate manager to produce to the chief executive any prescribed document, or class of prescribed documents, that—
a: the body corporate or body corporate manager is required to retain under subsection (1); and
b: the chief executive reasonably requires for the purposes of the chief executive’s functions or powers under this Act.
3: A body corporate or body corporate manager who receives a notice under subsection (2) must, within 10 working days after receiving the notice, produce the documents to the chief executive in the way specified in the notice.
4: Subsection (3) does not apply to a document or part of a document that is protected by legal professional privilege.
5: If a document is produced to the chief executive, the chief executive may—
a: inspect and make records of the document; and
b: take copies of the document or extracts from it. 1986 No 120 ss 123A 123C Section 202A inserted 9 May 2024 section 41 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
202B: Power of entry to inspect unit title development
1: An authorised person may, at any reasonable time, enter a unit title development to inspect it—
a: with the consent of the body corporate given in accordance with section 202C
b: if—
i: the inspection is authorised by an order of the Tribunal under section 202D
ii: the authorised person gives the body corporate at least 24 hours’ written notice of their intention to enter the unit title development.
2: The power of entry does not authorise the authorised person to enter any principal unit without the consent of the occupier of that unit given in accordance with section 202C
3: A notice under subsection (1)(b)(ii) must—
a: state that it is given under this section; and
b: state the address of the unit title development to which it relates; and
c: state the time at which, and the date on which, the authorised person proposes to inspect the unit title development; and
d: include a copy, sealed with the Tribunal’s seal, of the Tribunal’s order under section 202D
4: The authorised person’s power to inspect includes the power to do any of the following:
a: to bring into, and operate at, the unit title development any equipment (and to use electricity from the electricity supply at the unit title development for the purpose of operating the equipment):
b: to take or make photographs, sound or video recordings, measurements, or drawings:
c: to take samples of things for analysis:
d: to test things.
5: The body corporate must provide the authorised person with all assistance that the authorised person reasonably requests from the body corporate in relation to the inspection, including (for example) assistance reasonably requested for the purpose of enabling the authorised person to enter the unit title development or to access any part of the unit title development (excluding a principal unit).
6: A person authorised by the body corporate may accompany the authorised person while the authorised person is inspecting the unit title development.
7: An authorised person who enters any unit title development under this section must,—
a: on initial entry, produce evidence of the authorised person’s identity; and
b: while subsequently at the unit title development, produce that evidence to any person who reasonably requests to see it.
8: Sections 166 167
9: In this section and in section 202C authorised person 1986 No 120 s 123D Section 202B inserted 9 May 2024 section 41 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
202C: Inspection by consent
1: An authorised person may, for the purpose of investigating whether a breach of this Act has occurred, ask—
a: a body corporate to consent to an inspection being made of its unit title development (excluding a principal unit or an accessory unit); or
b: a unit title occupier to consent to an inspection being made of their principal unit or their accessory unit.
2: Before conducting an inspection by consent, the authorised person who proposes to conduct it must—
a: determine that the inspection is for the purpose authorised by subsection (1); and
b: advise in writing the person from whom consent is sought—
i: of the reason for the proposed inspection; and
ii: that they may either consent to the inspection or refuse to consent to the inspection. 2012 No 24 ss 92(c) 93 Section 202C inserted 9 May 2024 section 41 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
202D: Tribunal may authorise inspection
1: The chief executive may, in relation to a unit title development, apply to the Tribunal for an order authorising an inspection under section 202B
2: The Tribunal may make an order authorising the inspection if it is satisfied that the chief executive has reasonable grounds for believing—
a: that there has been a breach of this Act in relation to unit title development; and
b: that the inspection is reasonably necessary for the purposes of the chief executive’s functions or powers under this Act in relation to the breach.
3: The Tribunal’s authorisation under subsection (2) may be given subject to conditions, which must be set out in the order. 1986 No 120 s 123E Section 202D inserted 9 May 2024 section 41 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
202E: Chief executive may take proceedings in place of specified person
1: The chief executive may, if satisfied that it is in the public interest to do so on any of the grounds listed in subsection (2), do any of the following in relation to 1 or more unit title developments:
a: initiate any proceedings in the Tribunal or a court that could be brought by a person specified in section 171(2) specified person
b: defend any proceedings in the Tribunal or a court that are brought against a specified person:
c: assume the conduct of any proceedings in the Tribunal or a court brought by or against a specified person:
d: take any steps that are necessary to enforce or protect the rights of the specified person under this Act in relation to any infringement or suspected infringement of any of those rights.
2: The grounds referred to in subsection (1) are as follows:
a: in the chief executive’s opinion, there are allegations of conduct that is likely to cause or have caused a significant risk to the health or safety of any person:
b: in the chief executive’s opinion, a person has committed a serious breach of this Act, or has persistently breached this Act:
c: in the chief executive’s opinion, actions of a person risk undermining public confidence in the administration of this Act.
3: The chief executive must not exercise the powers conferred by subsection (1) unless the written consent of the specified person concerned has first been obtained, which, once given, may be revoked only with the written consent of the chief executive. 1986 No 120 s 124A Section 202E inserted 9 May 2024 section 41 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
202F: Supplementary provision to section 202E
1: The chief executive may not initiate any proceedings under section 202E(1)
2: If the chief executive acts in the place of a person ( A section 202E(1)
a: the chief executive has the same rights and remedies as A, including the right to settle the proceedings:
b: the chief executive may do anything in relation to the proceedings that A could do and, as between the chief executive and A, has control of the proceedings:
c: if the proceedings have already commenced, the Tribunal or court must substitute the chief executive for A as a party to the proceedings:
d: the Tribunal must, on the chief executive’s application, order that any other claim by or against A be dealt with in separate proceedings brought by the claimant against A (and not against the chief executive):
e: any order or judgment may be enforced by the chief executive as if the chief executive were A:
f: any money (excluding costs) recovered by the chief executive must, without any deduction, be paid by the chief executive to A:
g: A must reasonably co-operate with the chief executive.
3: The chief executive may, if acting under section 202E
4: If a person is the body corporate manager of 2 or more unit title developments and the chief executive acts under section 202E
5: Any certificate given by the chief executive relating to the chief executive’s powers under section 202E 1986 No 120 s 124B Section 202F inserted 9 May 2024 section 41 Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022
203: Immunities
No personal liability attaches to the chief executive or to any delegate of the chief executive for any act or omission by the chief executive or the delegate made in good faith and in the performance or exercise, or purported performance or exercise, of all or any of the functions or powers of the chief executive under this Act, or in the discharge, or purported discharge, of all or any of the chief executive’s duties under this Act, but without prejudice to any liability that the Crown may incur for the acts or omissions of any employee or agent of the Crown. 1986 No 120 s 125
2: Miscellaneous
204: Joinder of actions
Where an application under section 74 187 1972 No 15 s 49
205: Service of documents
1: Any notice or other document required or authorised by this Act to be served on or given to any person must be in writing and is sufficiently served or given if—
a: it is delivered to that person; or
b: it is left at that person’s usual or last known place of residence or business or at an address specified for that purpose; or
c: it is posted in a letter addressed to that person by name at that place of abode or business or address; or
d: it is transmitted to the email address or facsimile number given by that person as an address for service.
2: If the person is absent from New Zealand, the notice or other document may be served on or given to the person’s agent in New Zealand.
3: If the person is deceased, it may be served on or given to the person’s personal representatives.
4: If the person is not known, or is absent from New Zealand and has no known agent in New Zealand, or is deceased and has no personal representatives, the notice or other document must be served or given in a manner as may be directed by an order of the District Court.
5: If any notice or other document is sent to any person by post, it is to be treated as having been delivered to the person on the fourth day after the day on which it was posted, and in proving the delivery it is sufficient to prove that the notice or other document was properly addressed and posted.
6: A notice or other document sent by electronic means or by facsimile is to be treated as having been received on the working day immediately following the date on which it was transmitted; and in proving service it is sufficient to prove that the notice or other document was properly transmitted.
7: Despite anything in the previous provisions of this section, the District Court may, in any case, make an order directing the manner in which any notice or other document is to be served or given or dispensing with the service or the giving of the service.
8: This section does not apply to any other notices or other documents served or given in any proceedings in any court.
206: Provision of records and documents
1: The body corporate must, on request from a unit owner, make copies of the following records and documents available for purchase by the unit owner:
a: the body corporate operational rules:
b: all current insurance policies held by the body corporate or its head body corporate in respect of the buildings and improvements on the base land:
c: the long-term maintenance plan:
d: any agendas or minutes of the body corporate:
e: the financial statements:
f: any other documents the owner of a principal unit is required to provide under subpart 14
g: any other records or documents if the body corporate thinks it is reasonable in the circumstances to provide those records or documents.
2: The copies must be made available within a reasonable time, and the body corporate may charge any reasonable costs incurred in providing the records and documents.
207: Powers of entry by local authority or public body
If a local authority, public body, or person authorised by it has a right under any Act to enter on any part of the base land, the authority, body, or person is entitled to enter on any other part of the base land to the extent necessary or expedient to enable the authority, body, or person to exercise its or his or her powers under that Act. 1972 No 15 s 52
208: Requirement if consent requested
1: If a provision in this Act requires a person to obtain the consent of another person to do a thing, a person whose consent is requested—
a: must not unreasonably withhold consent; and
b: must, within a reasonable time,—
i: give the consent; or
ii: notify the person requesting the consent that the consent is withheld.
2: Subsection (1)(a) is subject to any provision of this or any other enactment setting out specific grounds on which consent may be withheld.
209: Distribution of proceeds in layered unit title development
1: This section applies where this Act provides for the distribution to unit owners of proceeds obtained by a body corporate, or of body corporate funds (a distribution of proceeds provision
2: A subsidiary body corporate is to be treated as the unit owner of the principal unit that was subdivided to create the subsidiary unit title development.
3: A subsidiary body corporate to which proceeds are distributed must deal with the proceeds in relation to any subsidiary unit title development below it according to the distribution of proceeds provision and subsection (2).
3: Minority and majority relief
210: General relief for minority where resolution required
1: In any case where this Act requires a resolution and the resolution is passed, any person who voted against the resolution may apply to the appropriate decision-maker for relief on the grounds that the effect of the resolution would be unjust or inequitable for the minority.
1A: Subsection (1) does not apply if the resolution is a designated resolution.
2: An application for relief under subsection (1) must be made within 28 days of the passing of the resolution. 1972 No 15 s 43 Section 210(1A) inserted 5 December 2013 section 22 Unit Titles Amendment Act 2013
211: Relief in cases where special resolution required
1: In any case where this Act requires a special resolution and the resolution is not passed but 65% of the eligible voters have voted in favour of the resolution, any eligible voter who voted in favour of the resolution may apply to the appropriate decision-maker to have the resolution confirmed on the grounds that the effect of the failure of the resolution to be passed would be unjust or inequitable on the majority.
1A: An application for relief under subsection (1) must be made within 28 days of the close of voting on the resolution. (However, this subclause does not apply if the close of voting was before this subsection comes into force.)
2: The appropriate decision-maker may make an order confirming the resolution, subject to any terms and conditions it sees fit, if it is satisfied that it is just and equitable to do so.
3: If the appropriate decision-maker confirms the resolution, the body corporate may proceed to carry out the resolution subject to any terms and conditions imposed by the appropriate decision-maker under subsection (2). Section 211(1A) inserted 5 December 2013 section 23 Unit Titles Amendment Act 2013
212: Designated resolutions
For the purposes of this subpart, designated resolution
a: subdivision of a principal unit to create a subsidiary unit title development under section 20
b: depositing a substituted proposed unit development plan under section 30
c: approving the method of apportionment of a utility interest under section 41(6)
d: sales, leases, or licences of common property under section 56
e: additions to common property under section 58
f: grants, variations, or surrenders of easements over common property under section 62
g: covenants over common property and the variation or surrender of such covenants under section 62
h: redevelopments requiring deposit of a new unit plan under section 68
i: application of insurance money for purposes other than reinstatement of the unit title development under section 136(4)
ia: variations of leases under section 167(1)(a)
j: purchases of reversionary interests in leasehold land under section 167(1)(c)
k: cancellation of unit plans under section 177
l: not reassessing the ownership interests and proposed ownership interests (if any) before applying, under section 177 see Section 212(ia) inserted 30 May 2017 section 46(1) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 212(j) amended 30 May 2017 section 46(2) Regulatory Systems (Building and Housing) Amendment Act 2017 Section 212(l) inserted 30 May 2017 section 46(3) Regulatory Systems (Building and Housing) Amendment Act 2017
213: Notices of designated resolutions
1: After passing a designated resolution, the body corporate must serve a notice in the prescribed form on the following persons:
a: every unit owner; and
b: every person who has a registered interest in, or has a caveat or notice of claim entered on the register over, any unit; and
c: if the resolution is to cancel the unit title development,—
i: every person who has a registered interest in, or has a caveat or notice of claim entered on the register over, the whole or part of the common property; and
ii: any person who is the grantee of an unregistered lease or licence over the whole or part of the common property.
2: The notice required to be served under subsection (1) is in addition to any other documents that are required to be served under this Act in relation to any particular matter.
3: Any person served with a notice under subsection (1) may, within 28 days of being served with that notice, give written notice in the prescribed form (if any) to the body corporate of his or her objection to the designated resolution (a notice of objection
4: Despite subsection (3), no person may object under that subsection in respect of an easement or covenant of a kind that will, under section 180(2)(b) or (c) 181(2)(b)
5: If a person served with a notice under subsection (1) subpart 1
6: A mortgagee or other person with a registered interest in, or caveat or notice of claim entered on the register over, all or part of a secured property is to be treated as having consented to a resolution if that mortgagee or other person does not object to the resolution or does not file an objection in time or made an objection but the appropriate decision-maker confirmed the resolution. Section 213(5) amended 5 December 2013 section 24 Unit Titles Amendment Act 2013
214: Requirements in relation to objections
1: A notice of objection must state that the person objecting intends to apply to the appropriate decision-maker for relief.
2: A person who has given a notice of objection under section 213(3) section 213(1)
3: A notice of objection is of no effect if—
a: it is given to the body corporate after that time; or
b: it is not filed with the appropriate decision-maker within that time.
215: Hearing if objection made
1: The appropriate decision-maker must hear the objection as soon as practicable and may make any order it thinks fit, including without limitation any of the following orders:
a: confirming the resolution:
b: overturning the resolution:
c: requiring the body corporate to pay compensation to the person making the objection:
d: requiring the person making the objection to pay compensation to the body corporate:
e: a work order:
f: granting an injunction.
2: The appropriate decision-maker must not make an order under subsection (1) unless it is satisfied that it is just and equitable to do so.
3: An order may be subject to any terms or conditions that the appropriate decision-maker thinks fit.
4: If the appropriate decision-maker—
a: makes an order overturning the resolution, then the resolution is to be treated as not having been passed; or
b: makes an order confirming the resolution, then the body corporate may proceed to carry out the resolution subject to any terms and conditions imposed by the appropriate decision-maker under subsection (3).
5: In this section, a work order
216: Certificate required
1: If no objection is made, or if after hearing any objection the appropriate decision-maker confirms the designated resolution, the body corporate must lodge a certificate (together with the other documents required to be lodged with the Registrar) that certifies—
a: that the designated resolution of the body corporate relating to the matter has been passed; and
b: that every person required to be served with the notice has been served; and
c: that—
i: no objection has been made; or
ii: an objection was made but the person making the objection did not file the objection in court within the time prescribed in section 214(2)
iii: an objection was made but the appropriate decision-maker confirmed the resolution or confirmed the resolution subject to terms and conditions; and
d: any other matter required to be certified under this Act or prescribed by regulation.
2: The certificate referred to in subsection (1) may be relied on by the Registrar as sufficient evidence of compliance with the matters set out in the certificate.
4: Regulations
217: Regulations
1: The Governor-General may from time to time, by Order in Council, make regulations for all or any of the following purposes:
a: prescribing the form and content of, and anything required to accompany, any application to deposit a unit plan or an amendment to a unit plan or to cancel a unit plan:
b: prescribing the form and content of financial statements to be provided by specified bodies corporate:
c: prescribing for the regulation of the funds set up under sections 115 117 118 119
d: specifying the matters to be included in a body corporate committee report:
e: specifying the information to be included in the register of unit owners:
ea: specifying the documents or classes of documents to be retained by a body corporate or body corporate manager for the purposes of section 202A
f: prescribing matters relating to the administration of a body corporate and a body corporate committee , including in relation to meeting requirements and procedures for participation by remote access
fa: specifying matters associated with the functions and duties that a body corporate manager may perform or exercise, including any terms that must be included in a manager’s terms of employment or engagement:
g: specifying matters associated with the functions, powers, and duties of a body corporate and a body corporate committee:
h: prescribing the manner and form of voting procedures and all other matters relating to voting , including in relation to electronic voting
i: prescribing body corporate operational rules:
j: prescribing requirements of a long-term maintenance plan and matters to be included in that plan:
k: prescribing the form and content of disclosure statements required under this Act:
l: prescribing the form and content of certificates:
m: prescribing for matters relating to the
n: imposing fees and charges for anything authorised by this Act , including in relation to the settling of disputes
o: prescribing the rate of interest payable on money owing to a body corporate:
p: regulating the practice and conduct of business under this Act:
pa: prescribing codes of conduct for—
i: body corporate committee members; and
ii: body corporate managers:
q: prescribing forms for the purposes of this Act:
r: providing for any other matters contemplated by this Act, necessary for its administration, or necessary for giving it full effect.
2: Regulations under this section are secondary legislation ( see Part 3 1972 No 15 s 55 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 217(1)(ea) inserted 9 May 2024 section 42(1) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 217(1)(f) amended 9 May 2023 section 42(2) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 217(1)(fa) inserted 9 May 2023 section 42(3) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 217(1)(h) amended 9 May 2023 section 42(4) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 217(1)(m) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 217(1)(n) amended 9 May 2023 section 42(5) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 217(1)(pa) inserted 9 May 2023 section 42(6) Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 Section 217(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
5: Repeals, transitional provisions, and consequential amendments
218: Unit Titles Act 1972 repealed
The Unit Titles Act 1972 OIC (SR 2011/121) 2011-06-20 Unit Titles Act 1972 Compiler see PCO 12019 (Building Regulations 1992) revocation history note for how to deal with s 220 of this Act. Read section 220 of this Act because there will be more work than just repealing the 1972 Act involved. See Michelle if you want any help with history notes.
219: Existing unit title developments
1: In this subpart, an existing unit title development Unit Titles Act 1972
a: was deposited before the commencement of this Act; and
b: has not been cancelled.
2: An existing unit title development is a unit title development under this Act and the body corporate for the unit plan that relates to that unit title development is, for the purposes of this Act and for all other purposes, the body corporate for that unit title development.
220: Continuation of certain provisions of Unit Titles Act 1972
Despite the repeal of the Unit Titles Act 1972 section 218 section 37 Schedules 2 3 section 221 sections 105 138
221: Application of sections 105, 106, 116, 117, and 138 to existing unit title developments
Nothing in sections 105 106 116 117 138
222: Ownership interest
Every unit entitlement assigned under section 6 section 38
223: Ownership of common property
On the date on which this Act comes into force, the ownership of the common property of each existing unit title development referred to in section 219
224: Transitional provision for supplementary record sheets
1: This section applies to any supplementary record sheet set up in relation to a unit plan before the commencement of this Act in accordance with section 20
2: The matters required to be noted on a supplementary record sheet under section 47(a) and (b)
225: Transitional provision for annual general meetings of bodies corporate for existing unit title developments
For the purposes of requirements relating to annual general meetings under section 89 section 219
226: Transitional provision for body corporate resolutions
A body corporate may do anything necessary to give effect to any resolution validly made under the Unit Titles Act 1972
227: Transitional provision for proceedings under former Act
1: Except as provided in subsection (2), any proceedings that were commenced, but not completed, before the date of commencement of this section must be continued and completed in all respects under the Unit Titles Act 1972
2: If both parties agree, the proceedings may be transferred to the appropriate decision-maker.
3: Any proceedings transferred under subsection (2)—
a: are to be treated as having been commenced with the appropriate decision-maker to which the proceedings have been transferred and are to be dealt with by that decision-maker accordingly; and
b: any interim decisions made before the transfer of the proceedings apply and any admissions made in relation to the evidence in those proceedings are deemed to be made in respect of the new proceedings.
228: Disclosure of information by seller of unit
1: This section applies if, on the date of the commencement of this Act,—
a: a buyer and seller have entered into an agreement for sale and purchase; and
b: there are 5 working days, or less, before settlement date.
2: Nothing in section 149 151 section 147
3: Section 148
4: Nothing in subsection (2) or (3)—
a: prevents the seller agreeing to provide any disclosure of information to a buyer; or
b: limits the obligations the seller may have incurred under section 36
5: In this section, expressions defined in section 144
229: Review of service contracts
In respect of a contract entered into by a body corporate before the date on which this Act came into force,—
a: section 140(2)
b: section 140(5)
230: Principal units consisting of open spaces: deposit of unit plans
1: This section applies if, on or after the date on which this Act came into force,—
a: an application is made to deposit a unit plan under this Act where the subdivision consent in relation to the proposed subdivision—
i: was given under the Resource Management Act 1991
ii: as at the date on which the application is made, has not lapsed; or
b: an application is made under section 69 section 219
2: Despite sections 7 32(2)(a)(ii)
a: if, before the date on which this Act came into force, the chief executive of a territorial authority gave a certificate under section 5(1)(g) section 32(2)(a)
b: if, before the date on which this Act came into force, the chief executive of a territorial authority would have given a certificate under section 5(1)(g) section 32(2)(a)
231: Principal units consisting of open spaces: amendment to unit plan
1: This section applies if, on or after the date on which this Act came into force,—
a: an application is made under section 67 section 219
b: any unit affected by the redevelopment to which the amendment to the unit plan relates was, before the redevelopment, a principal unit that would not have conformed to the description in section 7(1)(b)(i)
2: The amendment to the unit plan may be deposited even though the unit referred to in subsection (1)(b) will, after the redevelopment, still not conform to the description in section 7(1)(b)(i)
232: Application of
Part 2 of Legislation Act 2019 Except as provided in this subpart, nothing limits the application of Part 2 Section 232 heading amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 232 amended 28 October 2021 section 3 Secondary Legislation Act 2021
233: Consequential amendments to other enactments
1: The enactments specified in Schedule 3
2: The consequential amendments to sections 7 22 23 24 25 Part 1 section 37 Schedules 2 3 sections 220 221 OIC (SR 2011/121) 2011-06-20 Electricity Act 1992 Fire Service Act 1975 Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 Local Government Act 1974 Ngāi Tahu Claims Settlement Act 1998 Property Law Act 1952 Property Law Act 2007 Rating Valuations Act 1998 Residential Tenancies Act 1986 Resource Management Act 1991 Retirement Villages Act 2003 Securities Act 1978 Weathertight Homes Resolution Services Act 2006 Auckland City Council (Newmarket Land Vesting) Act 1998 Anglican Church Trusts Act 1981 Anglican (Diocese of Christchurch) Church Property Trust Act 2003 Compiler for Weathertight Home Resolution Services Act 2006 — see section 220 for application dates. I have worked out that 15 months after this Act comes into force is 1 October 2012.