The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 (the Amendment Act) became law on 9 May 2022, providing greater protections to those who buy and own unit title properties at a time of change in New Zealand’s housing landscape.
The commencement dates for the Amendment Act have now been announced.
The Amendment Act
The Amendment Act improves the Unit Titles Act 2010 and governs how unit title properties are bought and sold and is critical to ensuring this segment of our property market is fair and attractive to prospective purchasers as more people move to higher-density housing.
The changes include:
Improvements to the information disclosure regime, benefiting purchasers of unit title properties
Provisions to ensure planning and funding of long-term maintenance projects are adequate
Strengthening of the governance arrangements in relation to bodies corporate
Bolstering the professionalism and standards of body corporate managers.
Changes to the Amendment Act will come into force across three key dates:
Obligations in force on 9 December 2022:
Obligations in force on 9 May 2023:
Improved requirements for pre-purchase disclosures to protect buyers
Further obligations for Body Corporate Managers under the Unit Titles Act, including a formal Code of Conduct to follow
Greater accountability and clarity on how bodies corporate operate and are governed
Improved access to dispute resolution for all parties involved
Greater flexibility for bodies corporate in deciding utility interests.
Obligations in force on 9 May 2024:
Further information about the Amendment Act can be found on the Ministry of Housing and Urban Development website and on the Unit Title Services website.