Twelve years on since the modernisation of the law relating to unit titles in New Zealand, the Unit Titles Act 2010 is set to be amended and the change is long overdue.

The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Bill had obtained Royal Assent and is now law to be incorporated into the principal Act.

As a result, there will be a number of improvements, including:

• Fuller details are now required in pre-contract disclosures and with this the ability to request additional disclosures will be repealed (as the information that was able to be requested is now largely required to be provided);
• Clarification of consequences and rights of buyers if any disclosure has not been correctly undertaken or if responses are late, incomplete or not provided at all;
• Strengthening of the management and governance relating to bodies corporate which incorporates emphasis on professionalism and the standards of body corporate manager;
• Introduction of a code of conduct for both body corporate managers and committees; and
• Bolstering the requirements of maintenance plans, which in the case of “large developments” with more than 10 units, are now to cover a 30 year period from inception with reviews of the plan being undertaken at least every three years.

Good things take time and the legislative review leading to these amendments commenced in 2016. Buyers and owners alike will benefit with greater certainly and greater ethics being required. With many homes and businesses now located within unit title developments the scope of these changes will be widely felt through New Zealand.

If you are a buyer, manager, investor, developer or anyone else with an interest in anything relating to unit titles we can help you navigate these changes.