New Body Corporate rules
If you own a property subject to Unit Title rules the new Act which came into force about a year ago (with a 15 month lead-in time) will override a lot of the existing rules from the 1972 Act.
One of the new requirements is for body corporates to establish and maintain a long term maintenance plan covering at least ten years. We believe that strategic maintenance planning of this sort will be a real test for a lot of body corporates.
Calculating appropriate and sufficient contributions from unit title owners will be imperative.
Body Corporates are given wider responsibility for repairs and maintenance under the new Act as well as a change from unanimous agreement amongst owners to 75% agreement. Unit Title disputes involving sums of up to $50,000 will now be heard by the Tenancy Tribunal and sellers will be required to provide purchasers with disclosure statements around decisions a purchaser might have to make before buying a unit in a Body Corporate complex.
Generally we think the changes are for the better but they do place a lot of additional onus on body corporates.
That’s why we have developed a simple process plan for helping Body Corporates meet their commitments under the new Act. We can take a lot of the stress away from the management of a Body Corporate and ensure it functions more efficiently and cost effectively. Please get in touch if you would like more information on the Body Corporate services we offer. For more information on the new act go to www.dbh.govt.nz/unit-titles-updates.