Simon Collett and Ben Eagleson

RULES

POWERS AND DUTIES OF BODY

CORPORATE

PRINCIPAL UNIT AND COMMON

PROPERTY BOUNDARIES

DISCLOSURE REGIME

MINORITY AND MAJORITY RELIEF

DISPUTES RESOLUTION

New Zealand’s property market complex

Proliferation of apartment complexes

Previous regime inadequate

The 2010 Act is now in force

Rules as prescribed by Regulation

Body Corporate can amend the

operational rules

Changes can be made by Ordinary

Resolution

The 2010 Act introduces two new

concepts

Building Elements

Infrastructure

Body Corporate’s responsibility

Owner’s responsibility

Long Term Maintenance Plan

10 years

Basis for levies

Long Term Maintenance Fund

Operating account

Will require a higher standard

Body Corporate Committee

Chairperson calls meetings

Quorum 25%

Majority can apply for relief

Ownership Interest (OI) and Utility

Interest (UI)

UI is the same as the OI by default

Body Corporate can change the default

Register

Meetings

Operational rules

Delegation to committee

Establishing funds

Establishing Long Term Maintenance Plan

Imposing levies

Accounting

Insurance

Repair and maintenance

Principal Unit

Car Parks

Common Property

Owners own the Common Property as tenants in common in shares

A Body Corporate can sell part of the Common Property

No contracting out

Pre-contract Disclosure Statement

Pre-settlement Disclosure Statement

Body Corporate certificate

Buyer may delay settlement if no disclosure

Buyer may cancel Agreement if no disclosure

Now a comprehensive process

Any person who voted against may

apply

Confirming failed Special Resolutions

Time periods

Increase in Unit Title disputes

Act prohibits alternative dispute

resolution

Tenancy Tribunal

District Court

High Court

The Regulations cover:

Register of Owners

Meetings

Chairperson

Voting

Operational rules

Delegation of duties

Election of committee

Financial management

Disclosure