Guide
The Unit Titles Act explained
How the Unit Titles Act 2010 works for owners, committees and bodies corporate: who is responsible for what, how levies and repairs are decided, what changed in 2022, and where disputes go.
Who is who in a unit title development
| Who | Role |
|---|---|
| Body corporate | The legal entity made up of every unit owner. It owns the common property and is responsible for running the development. |
| Committee | Owners elected to run day-to-day matters for the body corporate, within limits set by the Act, regulations and rules. |
| Body corporate manager | A contractor engaged for administration and operations. Managers do not give legal advice. |
| Unit owners | Own their units, pay levies, vote at meetings and must follow the body corporate rules. |
Units and common property
Each owner owns their unit; the body corporate owns the common property, such as shared grounds, corridors and lifts. Generally, the body corporate repairs and maintains common property and building elements that serve more than one unit, and owners look after their own units.
Where exactly that line falls depends on the Act, the operational rules and the building, and it is one of the most common sources of dispute, especially in leaky and defective buildings.
Levies, budgets and maintenance
The body corporate raises levies from owners to fund operating costs, maintenance and long-term repairs, and must plan for long-term maintenance. Owners have to pay levies even when they disagree with a decision, and unpaid levies can be recovered from them.
The 2022 amendments
The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 made the biggest changes since the Act was passed. It came into force in stages, with the final provisions taking effect on 9 May 2024. The changes include:
- more information for buyers before they commit to a purchase, including for off-the-plan units
- a strengthened long-term maintenance regime
- rules for the body corporate's contract with its manager
- rules and procedures for electronic voting, and clearer proxy voting
- new powers for MBIE, the regulator
Leaky and defective unit title buildings
A body corporate can claim against the parties responsible for defects in a complex, including builders, developers, designers and councils. Where owners cannot agree on repairs, the body corporate can apply to the High Court under section 74 to approve a scheme of repair. See leaky and defective buildings.
Unit Titles Act: common questions
What is the Unit Titles Act 2010?
The New Zealand statute that governs how unit title developments, such as apartment blocks, townhouse complexes and multi-unit commercial buildings, are created and run. It sets out the powers and duties of bodies corporate, owners’ rights and obligations, governance and financial rules, and how disputes are resolved.
What changed with the 2022 amendments?
The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 came into force in stages, with the final provisions taking effect on 9 May 2024. Changes include stronger disclosure to buyers, a strengthened long-term maintenance regime, rules for contracts with body corporate managers, electronic voting, and new powers for MBIE as regulator.
Can I take a unit title dispute to the Tenancy Tribunal?
Yes, for most disputes with financial claims up to $100,000. Mediation costs $256 and a hearing $512. The Tribunal cannot decide disputes about title to the land, or about how insurance money is spent; insurance money disputes go to the District Court (up to $50,000) or High Court, and land title disputes to the High Court.
Do I have to pay levies if I disagree with a body corporate decision?
Generally, yes. Unpaid levies can be recovered from you, and mediation is not available for unpaid levy disputes. If you disagree with a decision, get advice on challenging it rather than withholding levies.
What happens when owners cannot agree on repairs to a leaky building?
The body corporate can apply to the High Court under section 74 of the Act for approval of a scheme of repair. The court can approve a scheme that is timely, economic and fair when the owners cannot agree.
These answers are general information, not legal advice for your situation.
This guide is general information about the Unit Titles Act 2010, not legal advice for your situation. Read the Act atlegislation.govt.nz, and the regulator's guidance at unittitles.govt.nz.
Need advice on a unit title matter?
The first consultation is free and confidential. Bring any reports, contracts or correspondence you have, and we will explain your options and the likely time limits.
We aim to reply within 24 hours. Every enquiry is held in strict confidence.