Unit Title | Everything you should know about it before buying!
With more apartments and townhouses being built in New Zealand, the Unit title properties are becoming very common. In this article, we will discuss Everything about the Unit Title. Starting from what it is, what is a body corporate, what is the Unit Titles Act, and Things you must check before
buying a unit title property.
What is a unit title?
When we talk about unit title property, it means that you own a part of the building, such as an apartment or townhouse, with the shared common areas like lobbies, lifts, driveways, etc. In short, the combination of owning an individual and shared space falls under the Unit title property, which has a distinct set of rights and responsibilities.
What is a body corporate?
Once you own a unit title property, you automatically become a member of the body corporate. This comprises all unit owners, and they are required to hold an annual general meeting to discuss all body corporate matters. It is the responsibility of a body corporate to manage finance, administration of common, shared areas and the property as a whole.
There are several responsibilities that come along with being a part of a body corporate, like –
Maintenance & Repairs
- Oversee upkeep of common areas: gardens, hallways, lifts, driveways, roofs, shared plumbing/electrical.
- Arrange regular inspections and urgent repairs to maintain safety and value.
Financial Management
- Prepare annual budgets and set levies/fees for owners.
- Maintain reserve funds for long-term maintenance.
- Keep transparent financial records and provide annual statements to owners.
Insurance
- Ensure the entire building or development is adequately insured (structure, common property,
liability). - Review policies annually to keep coverage up to date.
Rule Enforcement & Dispute Resolution
- Create and enforce bylaws or rules for residents (noise, pets, parking, renovations).
- Handle complaints and mediate disputes between owners or occupants.
Meetings & Governance
- Organise annual general meetings (AGMs) and special meetings when required.
- Record and distribute meeting minutes and decisions.
- Ensure compliance with local legislation (e.g., Unit Titles Act in NZ, Strata Titles Act in AU).
Health & Safety Compliance
- Maintain fire safety systems, emergency exits, and hazard management plans.
- Keep records of safety checks and certifications.
Contract Management
- Engage and manage service providers (cleaning, landscaping, security, building management).
- Negotiate and review contracts to ensure cost-effective service.
Understanding Body Corporate Fees
Regular fees (often called levies) cover the shared costs of running and maintaining the complex,
such as:
- Building insurance
- Repairs and ongoing maintenance
- Cleaning and rubbish removal for common areas
Utility Interest and Your Share
Each owner’s contribution is based on utility interest, which is usually the same as the ownership interest, often tied to the relative value of each unit.
Example: if you own one of ten identical units, your share will normally be 10 %. In some developments, the utility interest can be set differently.
For instance:
- A developer may assign higher utility interest to units with exclusive amenities, like private courtyards.
- The body corporate may pass a special resolution to change how costs are allocated.
Note: Always ask the developer about the unitility interest for the unit you are planning to buy. You can also check out our article on Tips For Buying a New Home, Things to Consider for more tips.
Changes Over Time
Levies may rise when expenses increase, insurance premiums, maintenance costs, or service fees can all push them higher. Your current levy amount and utility interest will be listed in the pre-contract disclosure statement.
Now that we have understood what is a body corporate and what are your roles being a member of one, let’s jump into the section discussing other things like what to consider before buying a unit title property?
Key Information Before Buying a Unit Title Property
If you’re purchasing a unit title property, for example, a townhouse, the current owner must provide you with specific details about the unit and the development it belongs to before you commit to the purchase.
This requirement comes from the Unit Titles Act 2010, so it’s important to understand your obligations under that law.
At Kiefer Property Group, we keep things very transparent and always encourage you ask any questions if you are in doubt, ensuring our relationship is bound with trus
Documents the Seller Must Provide
Before the sale is completed, the seller is legally required to supply two disclosure statements: Precontract and pre-settlement disclosure statements.
Pre-contract disclosure statement
You must receive the PCDS before signing the sale and purchase agreement. This document outlines essential facts about the unit and the body corporate, such as:
- Financial position of the body corporate
- Ongoing or planned maintenance
- Governance and management etails
- Any known defects, remediation work, or legal disputes
If the statement is missing, late, incomplete, or inaccurate, you may have the right to delay settlement or cancel the agreement.
Pre-settlement disclosure statement
After the contract is signed, the owner must also give you a PSDS.
This must reach you at least five working days before settlement (excluding weekends, public holidays, and 25 Dec–2 Jan).
The PSDS provides updated information so you know exactly what you’re buying.
Failure to provide a complete and timely PSDS can also give you grounds to postpone or cancel the settlement.
You will also find our article on why buying a townhouse in Auckland is a good option?
Bottom Line
At Kiefer Property Group, we believe buying a unit title home should feel clear and confident, never complicated.
Transparency is at the heart of every sale we handle, we make sure you receive all required disclosure documents, understand how body corporate fees work, and know your rights and responsibilities long before settlement day.
Our goal is simple: to give you the facts, answer every question, and guide you through each step so you can focus on what really matters, finding the perfect home and investing with peace of mind.
