Leaky building? Significant repairs? Large-scale maintenance project?

A body corporate facing significant building works to repair building defects and associated damage, or replace building components at the end of their useful life may be able to rely on the default statutory provisions of the Unit Titles Act 2010 (“UTA”) to complete the work. Alternatively, it may be either necessary or desirable to turn to section 74 of the UTA and establish a reinstatement scheme.

While the default statutory provisions may be sufficient in some cases, bodies corporate (and unit owners) continue to find the flexibility, structure and certainty conferred by reinstatement scheme of value.

A body corporate or unit owner can apply to the High Court to establish a reinstatement scheme where a unit title building has been damaged or destroyed. A scheme must be appropriate for the building, the works required, and above all, the terms of the scheme must be fair t`o all owners. This does not mean that all owners must be treated equally, but that they must be treated fairly or equitably as a whole.

There are many benefits of a scheme including the ability to step outside the provisions of the UTA where it is appropriate and fair to do so. The most common departure from the UTA is the application of a project-specific cost allocation methodology for the costs of the building work. Schemes can also address decision-making, disputes, and liability.

If your building requires significant building work, we would love to help. Please contact Vicki Toan or Kishen Kommu for more information.

Source: Glaister Ennor
Paul McKendrick, Litigation & Dispute Resolution
Vicki Toan, Resource Management

www.glaister.co.nz     Follow on LinkedIn

MATTERS ADVISED ON

We have recently advised bodies corporate, unit owners, and developers on:

  • cancellation of unit plans
  • designated resolution processes
  • covenants and easements
  • operational rules and the use of unit property
  • dispute resolution
  • debt recovery