Twelve years after the modernization of unit titles law in New Zealand, the Unit Titles Act 2010 is about to be amended and change is long overdue.
The Unit Titles Amendment Bill (Strengthening Corporate Governance and Other Matters) has received Royal Assent and is now due to become part of the main statute.
As a result, there will be a number of improvements, including:
- Fuller details are now required in pre-contractual disclosures and with this the ability to request additional disclosures will be repealed (since information that could be requested must now be provided in large part);
- Clarification of the consequences and buyers’ rights if a disclosure was not properly made or if responses are late, incomplete or not provided at all;
- Strengthening corporate management and governance that incorporates a focus on corporate officer professionalism and standards;
- Introduction of a code of conduct for corporate officers and committees; and
- Strengthen the requirements of the maintenance plans which, in the case of “large developments” of more than 10 units, must now cover a period of 30 years from the start with revisions of the plan at least every three years.
Good things take time and the legislative review leading to these changes began in 2016. Buyers and owners alike will benefit with greater certainty and greater ethics being required. With many homes and businesses now located within unity title developments, the reach of these changes will be widely felt across New Zealand.
