Body corporate consent to use common property?

The Quays Body Corporate in Auckland (Body Corporate 198900) was recently before the High Court trying to get a declaration that the awnings erected by various bars that occupied the ground floor units should be removed at the cost of those owners. As the Court noted in its judgment dated 10 July 2015 “This issue…

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The new two year rule

It is proposed to make the profits on sales of residential property taxable if sold within two years of acquisition, subject to certain limited exceptions.  There will be no "purpose" or "intention test" to determine whether profits are taxable, as is presently the case.  This is not law yet but it seems very likely it…

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The Death of Common Sense

"It’s the death of common sense" he said leaning on my doorframe, frustration etched on his face.  This was the third visit – trying to provide information to the bank suitable to meet anti-money laundering requirements; – so he could get online access to a bank account.  Ronald* (*name changed for issues of privacy and…

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Proxies and Powers of Attorney

In the past proxies were commonly used in the unit title setting.  Developers would provide for them in sale contracts.  Property managers would include them in leases of serviced apartments.  It gave the developers and the managers the opportunity to control decisions made by the body corporate.  These provisions are now of little use given…

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Unit titles, developers and the control period

Control Period and Turnover Disclosure The Unit Titles Act 2010 (UTA) treats a developer as being in control of a unit title development from the date the unit plan deposits until the date the developer (or its associates) owns or controls less than 75% of the votes in the body corporate.  Associates are defined widely and include the developer’s agents, trustees or…

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Unit Titles Act – Ownership Interests and Utility Interests

When a unit title development is created a valuer must assess the ownership interest for each unit, which is essentially the relative market value of that unit compared with all of the other units. It’s possible for the body corporate to also establish a separate utility interest for each unit.  That utility interest is then used to…

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Changes to retentions

What are the proposed changes? Changes are being mooted to retention arrangements. The Government has announced that a "deemed trust" arrangement is their proposed solution to protect subcontractors from circmustances like those that followed Mainzeal’s collapse. Retention funds won’t need to be held in a separate bank account though so whether the funds are truly…

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Unit titles, developers and the control period

Control Period and Turnover Disclosure The Unit Titles Act 2010 (UTA) treats a developer as being in control of a unit title development from the date the unit plan deposits until the date the developer or its associates owns or controls less than 75% of the votes in the body corporate.  Associates are defined widely and include the developer’s agents, trustees or…

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Unit Titles Act – Ownership Interests and Utility Interests

When a unit title development is created a valuer must assess the ownership interest for each unit, which is essentially the relative market value of that unit compared with all of the other units. It’s possible for the body corporate to also establish a separate utility interest for each unit.  That utility interest is then used to…

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Communal land in residential developments

Communal land in residential developments is a common and useful way to expand space available to homeowners, giving them the benefits of land ownership without the same burden.  It’s common place both in rural areas and increasingly in the urban setting where space is at a premium. The arrangement has some legal difficulties. Historically this…

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A well designed neighbourhood

The legal set-up of a new subdivision or unit title development should be treated with as much care as the physical design.  It’s very easy to leave a mess – one that is difficult and expensive to resolve. The rights, rules and restrictions that a developer puts in place for the new neighbourhood are generally…

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Long term maintenance plans and funds

With the Unit Titles Act 2010 (UTA), bodies corporate were required to implement a long term maintenance plan.  By special resolution, a body corporate could opt out of having a long term maintenance fund.  Most bodies corporate have plans.  Not so many have funds (or sufficient funds) to cover all the needs of their buildings.  More…

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