FAQ’s

  • The Managing Director will work directly in and on the Company, drawing on a wealth of industry experience to individually service each client’s needs.
  • Advanced software and technology systems to enhance our performance
  • Evolving with the needs of our individual clients and their investments
  • Offering regular and clear communication to all parties through building community forums
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  • Decades of experience through Australia and NZ working alongside several of the top players and learning from both their triumphs as well as mistakes.
  • We work closely with property owners, chairpersons and committees to improve and protect client investments. We are here to make your life easier!

A body corporate is established when a developer deposits a unit plan with Land Information New Zealand. At this point the owner of all of the units may be one person or an entity, that is, the developer. Often at this stage changes will be made to the rules and certain ‘founding’ agreements entered into, with one person controlling all of the voting power.

New owners automatically become part of the body corporate upon the settlement date of their unit. Being a member of a body corporate isn’t an optional arrangement – if you own a unit in a unit titled development, you will be a member of a Body Corporate, with all the rights and responsibilities that come with that. This is then transferred when you sell your unit.

The body corporate is a legal entity and framework for the ownership and management of land and associated buildings and facilities, made up of all of its members. This is goverened by the Unit Titles Act and Regulations. The members usually meet annually to elect a Body Corporate Chairperson and Committee who are in charge of the body corporate between General Meetings.  Owners may elect to appoint an independent Manager such as Property 101 Group, we are not the Body Corporate, nor a member of it, but contract to the owners to assist with administration and management of the complex.

In a cross lease, all owners (known as “Lessors”) are ‘tenants in common’ and own an equal share in the land and will have exclusive use of a unit/flat or area. You may also have exclusive use of an additional area such as a carport or garden, and this will be noted on your certificate of title.

In a cross lease, the rules are under your Memorandum of Lease (MOL). This MOL will record the obligations and requirements of all cross-lease members and sets out how decisions are made.

The building on the land (referred to as “flats” or “areas”) is leased from all the land owners to the individual owner (known as “Lessee”) who owns that particular flat or area. It is important that the “flats plan” accurately reflects what is physically on the land. If there are alterations to a flat or exclusive use area that are not shown and the footprint is now different than the “flats plan” this may be considered defective and cause the owners issues.

A Company Share is where a jointly-owned property is held as a company, where individuals hold shares in the company. The company provides individual licenses to occupy the different areas/units on the site.

Company share properties are governed by the Companies Act and must have a constitution, file annual returns and prepare annual financial accounts. They will usually be the result shared facilities, such as a gated community.

Company share properties are largely pre-1991 when the Resource Management Act made subdivision consents for such properties mandatory. Independant Managers can  assist with administration and management of the above.

An Incorporated Society or Residents Society is a group or organisation that has been registered under the Incorporated Societies Act and is authorised by law to run its affairs. It is becoming more common in areas of larger subdivisions where there are common facilities or infrastructure and it is a requirement to share costs by members, e.g. roading or stormwater ponds.

An incorporated society will continue to exist as long as it files certain documents with the Registrar of Incorporated Societies or until its members, or a creditor, decide to bring the society to an end.

Each Society will have their own individual Constitution that advises of the rules and requirements, such as: – members’ obligations and restrictions, the process for handling internal disputes, requirement for financial audits, requirement to pay membership levy’s, Annual General Meetings, format of accounts, the reason for the need for the society, etc.

The Constitution and any associated covenants will affect all properties within the society, so it is important to consider these. They may include housekeeping or operational rules, ongoing contributions or costs and consent requirements owners need to be aware of.

Often Society’s will engage a professional management company to assist with administration and management of the above.

Depending on the legal structure of your complex, you may have a Constitution, Rules, Bylaws, or in the case of Unit Tiles, Operational Rules. Many of the governance issues are part of the various Acts and/or Regulations, however some can be amended by owners at a General Meeting. Once agreed to, they need to be lodged at Land Information New Zealand (LINZ) so that they are noted on your title.

The Rules of the property cover such things as parking, rubbish, pets and so on – we recommend every complex should have their own set of housekeeping Rules.

Under the Unit Titles Act 2010, sellers are required to provide disclosure information to prospective buyers. The information contained in the disclosure statements is intended to assist in their purchase decision.

Other shared ownership structures may have similar disclosure requirements in their constitution/regulations, such as a Certificate of Proprietor Liability.

Failure to comply in some circumstances can cause an agreement to be cancelled or settlement delayed so compliance is very important. It is not possible to contract out of any part of the disclosure regime.

The Unit Titles Act provides for four types of disclosure:

  1. Pre-Contract Disclosure Statement (PCD) – the vendor must provide this statement at the time they enter into a contract with a potential purchaser. The PCD (as per Form 18 of the Regulations) contains general information about unit title ownership, as well as specific details such as the amount of the levy for the unit, upcoming maintenance to the development, funds held by the body corporate, and whether the unit or common property has had any weathertightness issues.
  2. Pre-Settlement Disclosure Statement (PSD)- the vendor must provide this statement once a sale and purchase contract goes unconditional, by no later than the fifth working day before the settlement date. This statement is usually organised through your solicitor with its purpose being to give the buyer a summary of the current fees and charges relating to the unit, whether there are any proceedings pending against the body corporate and whether there have been any changes to the body corporate operational rules.
  3. Additional Disclosure – the vendor provides this statement at the request of the buyer and the buyer must pay all costs associated with providing it. The purpose of the additional disclosure statement is to make body corporate records on maintenance, finances, insurance, contracting and governance accessible to potential buyers. If a buyer makes a request, the seller must provide the additional disclosure statement to the buyer within 5 working days of receiving the request.
  4. Turnover Disclosure – under sections 154 to 156 of the Act when a developer has sold enough units that they can no longer exercise 75% of the votes of the Body Corporate they must notify the Body Corporate. This change in voting power is called the end of the control period.

At this point the Body Corporate must call a general meeting within 3 months and at that meeting a “turnover disclosure statement” must be supplied by the developer. The turnover disclosure statement must be in prescribed Form 19 in the Regulations and contain all matters listed in regulation 36, including but not limited to building plans, code compliance certificates, building warrants of fitness, warranties and guarantees, consent obligations, details of Body Corporate assets and liabilities, recommended maintenance plans, existing or proposed maintenance and service contracts and terms of any licences or leases over common property. At the same time the developer must also disclose details of any interest it has in any contract or arrangement made by the Body Corporate up to the date of the turnover disclosure statement.

Owners will decide on the budget at a General Meeting, be it for the annual levies or special levies for certain projects. Your levy is your financial contribution/share of the maintenance and management budget of the complex and its common areas. Typically owners will set a budget to cover yearly costs such as insurance, building valuations, maintenance contracts, administration/management fees, and other outgoings such as contribution to a Contingency or Long Term Maintenance fund.

Levies are essential for a well-run and maintained complex, whether managed independently or not. Through Property 101 Group you will have live real-time access to this and much more information relating to your complex, including the ability to pay by credit card online here.

While the scope for a Multi-Unit Manager is unlimited & should be tailored to individual requirements, standard Management services generally include:

  • Hold an Annual General Meeting, otherwise referred to as an AGM (in person or by mail)
  • Arrange Insurance for all the buildings and other improvements on the land (excluding contents)
  • Assist to keep the common property and building elements in good order (with owner instruction/approval)
  • Carry out the functions detailed in the rules/lease/constitution and bylaws
  • Raise & collect levies to ensure cashflow is sufficient to run the complex well.
  • Arrange a long-term maintenance plan, sinking an/or contingency funds.
  • Provide advice and assistance in the effective administration and management of the complex to Chairpeople, committees, boards and owners.

Some complexes elect to have an onsite or visiting building manager. This is a more hands on role in addition to the administrative role above and generally that person is responsible for:

  • Onsite liaison between residents
  • Control of contractors working for the complex
  • Supervising access
  • Enforcement of the Rules & Compliance with Legislation

Like any service provider, from time to time, you may elect to review your options. While this process can take time and dedication, it should not be a difficult one. We’re happy to meet with your committee and/or owners at any time to discuss our company & services, and how we may be able to assist & add value.

If your committee (or the majority of owners) decide it’s time for a change, we are here to help and will ensure this is a seemless and stressfree transition for everyone involved. We have years of experience in changeovers and there are no additional fees for our expert advice and guidance.

Most complexes will have a Committee or board, who act in the interest of all owners between meetings. We recommend owners consider being part of this group if they wish to have a say and ensure they are part of the decision making process. Our system will also enable transparency and communication through the community forum for your complex, however, if you need any advice or guidance, we are happy to assist.

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