Management rights under fire

The Auckland High Court has issued its decision on the management agreement for the Sentinel Apartments in Takapuna.  The body corporate was challenging the management arrangements put in place by the original developer.   The Court concluded that the management agreement is harsh or unconscionable in terms of section 140(5) of the Unit Titles Act…

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Conveyancing and sinking funds

Sinking funds are common in the management of commercial property. Increasingly they need to be considered in residential developments when dealing with the sale and purchase of the property. There are for example, FF & E Reserves (for replacing furniture, fittings and equipment). These are held in connection with apartments leased to hotel or serviced…

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Selling off the plans – what’s new

For the first time in a very long while pre-sale contracts for residential properties are hitting the market.  Residential developers and their banks have been keeping a low profile these last few years but things are beginning to change.  Changes in the law means there are some new things to look out for in agreements…

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Maintenance and Unit Titles

As 1 October 2012 approaches there is a big issue looming in addition to sorting out your rules.  It’s the change in the maintenance regime.  Not so much the compulsory requirement that a body corporate have a long term maintenance plan, which everyone seems to be on top of.  Rather the fact that the body corporate becomes…

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Changing rules – what does it mean to me?

By 1 October 2012 new body corporate operational rules are required under the Unit Titles Act 2010.  Most bodies corporate have started to prepare replacement rules. There are a number of things which are now covered elsewhere, not in the rules.  These include AGMs, elections, voting, insurance and maintenance responsibilities.  The new rules will focus…

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What is material?

Historically anyone making changes to a unit title development needed either to complete a redevelopment plan or to cancel the unit title plan and start again. Both options needed unanimous consent from all of the owners. Things are different under the Unit Titles Act 2010 but there are still steps to be satisfied.  Some of them are…

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What is material?

Historically anyone making changes to a unit title development needed either to complete a redevelopment plan or to cancel the unit title plan and start again. Both options needed unanimous consent from all of the owners. Things are different under the Unit Titles Act 2010 but there are still steps to be satisfied.  Some of them are…

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Unit Titles – 8 months on

The Unit Titles Act 2010 has been in force for over 8 months now.  Most bodies corporate have had their first AGM under the new Act and made the necessary decisions.  The next key date is 1 October 2012.  By this date: new body corporate rules are needed final decisions are needed on responsibilities for…

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You must read this if you are selling a unit title property

Many agreements being signed now will be subject to the new seller’s disclosure regime. Agreements for sale and purchase for a unit title property will be subject to the new disclosure regime if entered into before 20 June with settlement after 27 June 2011.  Agreements entered into on or after 20 June are also subject…

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Bodies Corporate – who pays for what?

Unit entitlements In the past all body corporate levies have been assessed on unit entitlements.  Because unit entitlements are based on value, historically different owners using the same facilities could be required to contribute to costs to differing extents.  This system was criticised as being unfair and imposing an irrelevant assessment model on costs.  In…

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Unit Titles Act 2010 Developers and Disclosure

Unit Titles Act 2010 Developers and Disclosure The impact of the Unit Titles Act 2010 on developers Disclosure requirements in general are introduced in a previous blog.  What follows is an analysis of the specific implications for developers and the additional “turnover disclosure” that is relevant when a development is completed.  Pre-contract Disclosure Pre-contract disclosure…

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Layered Developments under the Unit Titles Act

 Here is a recent newspaper article discussing layered developments under the Unit Titles Act.  Debra Dorrington (If you would like to hear when our next webinar on The Unit Titles Act 2010 will be, go to www.alexanderdorrington.co.nz/webinars)  

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