Buying an apartment, townhouse, or unit title property in New Zealand? Understanding the body corporate is just as important as understanding the building itself.
What is a Unit Title?
A unit title is a form of property ownership where you own your individual unit (apartment, townhouse, or commercial space) plus a share of the common areas — lobbies, driveways, gardens, and building structure.
Unit titles are governed by the Unit Titles Act 2010 and managed by a body corporate made up of all unit owners.
What You Own
| Component | Who Owns It |
|---|---|
| Your unit | You (exclusively) |
| Common property | All owners (shared) |
| Building structure | All owners (shared) |
| Your car park | You (if accessory unit) |
| Gardens/landscaping | All owners (shared, unless exclusive use) |
What is a Body Corporate?
The body corporate is automatically created when a unit title development is established. Every unit owner is a member — there's no choice about joining.
Body Corporate Responsibilities
- Maintaining common property
- Managing the building's shared infrastructure
- Setting and collecting levies
- Making decisions about the development
- Compliance with building regulations
- Long-term maintenance planning
How Decisions Are Made
- Annual General Meeting (AGM) — at least once a year
- Extraordinary General Meetings — for urgent matters
- Body corporate committee — elected to manage day-to-day operations
- Body corporate manager — often a professional company employed to handle administration
What Your Title Search Shows
When you order a certificate of title for a unit title property, you'll see:
Unit Entitlement
A number representing your share of the development. This determines:
- Your share of body corporate levies
- Your voting power
- Your share of common property
Registered Interests
- Body corporate operational rules
- Any registered easements
- Utility ownership details
- Covenants and conditions
Supplementary Record Sheet
Additional information about the unit title development, including:
- Total number of units
- Schedule of unit entitlements
- Common property description
Body Corporate Levies Explained
What Are Levies?
Levies are regular payments every unit owner must make to fund the body corporate's operations and maintenance obligations.
Types of Levies
Operating levies cover day-to-day costs:
- Building insurance
- Common area maintenance
- Cleaning and gardening
- Body corporate management fees
- Utilities for common areas
- General administration
Long-term maintenance fund (LTMF) levies are savings for future major works:
- Roof replacement
- Exterior repainting
- Lift maintenance
- Plumbing and electrical upgrades
- Structural repairs
Special levies are one-off charges for unexpected costs:
- Emergency repairs
- Legal disputes
- Unbudgeted maintenance
How Levies Are Calculated
Your levy is based on your unit entitlement — the number assigned to your unit relative to all others. A larger, higher-floor apartment typically has a higher entitlement and pays more.
What Levies Typically Cost
Levy amounts vary enormously:
| Development Type | Typical Annual Levies |
|---|
Remember: These are on top of your mortgage, rates, and personal insurance.
Pre-Contract Disclosure
Before you buy a unit title, the seller must provide a pre-contract disclosure statement. This includes:
What's Disclosed
- Current body corporate levies
- Long-term maintenance fund balance
- Any special levies proposed or pending
- Body corporate rules
- Recent AGM minutes
- Known defects or issues
- Current insurance details
- Any legal proceedings
Why This Matters
This disclosure is your window into the real state of the body corporate. Review it carefully — it can reveal:
- Upcoming major expenses
- Disputes between owners
- Building maintenance problems
- Financial management quality
Additional Disclosure
You can also request an additional disclosure statement for more detailed information, though this may take longer and cost extra.
Key Things to Check Before Buying
1. Long-Term Maintenance Fund
Is there enough money saved for future maintenance?
- A well-funded LTMF means no surprise special levies
- An underfunded LTMF means you'll likely face special levies
- Check the 10-year maintenance plan
2. Body Corporate Minutes
- Ongoing disputes or problems
- Major maintenance issues discussed
- Owner complaints
- Financial concerns raised
3. Current Levies and Trends
- What are the current levies?
- Are increases in line with inflation?
- Are significant increases proposed?
4. Building Condition
- When was the building last painted/maintained?
- Are there any weathertightness issues?
- What major works are planned?
- Is the building earthquake-prone?
5. Body Corporate Rules
Can you live with the rules?
- Pet restrictions
- Noise rules
- Parking allocations
- Renovation restrictions
- Short-term rental rules (Airbnb)
6. Insurance
- What does the body corporate policy cover?
- What's the excess?
- Are there any exclusions?
- Do you need separate contents insurance?
Common Unit Title Problems
Weathertight Building Issues
Buildings constructed between 1994 and 2004 are particularly at risk. Remediation costs can be enormous — sometimes exceeding the value of individual units.
Underfunded Maintenance
If previous owners haven't contributed enough to the LTMF, current and future owners bear the cost through special levies.
Body Corporate Disputes
Disagreements between owners about rules, levies, maintenance priorities, or building management can make life difficult and affect property values.
Poor Management
An inefficient or unresponsive body corporate manager can lead to deferred maintenance, financial mismanagement, and frustrated owners.
Short-Term Rental Conflicts
Disputes about Airbnb-style rentals are increasingly common. Check the body corporate rules and any recent discussion about short-term letting.
Unit Title vs Other Ownership Types
| Feature | Freehold | Cross Lease | Unit Title |
|---|---|---|---|
| Own the land? | Yes | Share | Share |
| Body corporate? | No | No | Yes |
| Levies? | No | No | Yes |
| Rules about use? | Covenants only | Cross lease terms | Body corp rules |
| Maintenance | Your responsibility | Shared exterior | Body corp manages |
| Flexibility | High | Medium | Lower |
Common mistakes and risks
- Reviewing only the unit's record and overlooking the unit plan, supplementary record sheet, accessory units and common-property interests.
- Comparing levies only by annual amount without checking the long-term maintenance plan, fund balance, insurance and expected special levies.
- Reading recent meeting minutes but not earlier decisions, unresolved defects, disputes or major works that may affect future owners.
- Assuming body corporate insurance covers the owner's contents, improvements, liability and every loss affecting the unit.
- Relying on incomplete or late disclosure without obtaining legal advice on the buyer's rights and the information still missing.
Key takeaways
- A unit-title purchase includes the principal unit, any accessory units and an undivided share in common property.
- Review the record, unit plan, supplementary record sheet, operational rules and disclosure documents as one due-diligence set.
- Assess levies alongside maintenance planning, fund balances, insurance, meeting records and known building issues.
- Use a property lawyer to explain disclosure gaps, title interests, body corporate obligations and conditions needed before purchase.
Sources and related guides
The Unit Titles Act defines unit ownership, common property, body corporate duties, operational rules, maintenance funding and seller disclosure. Independent government buyer guidance explains the records and financial information buyers should review.
Official sources
Continue your research
Legislation and guidance reviewed 2026-09-28. This guide is general information, not legal or surveying advice.
Frequently Asked Questions
Are body corporate levies tax-deductible?
For investment properties, body corporate levies are a deductible expense. For owner-occupied properties, generally no.
Can the body corporate stop me from renovating?
They can restrict renovations to common property and may require approval for changes that affect the building structure or exterior appearance.
What happens if I don't pay levies?
The body corporate can register a charge against your unit title, charge interest, and ultimately take legal action to recover unpaid levies.
Can I attend body corporate meetings as a buyer?
Not until you're the registered owner. However, you can request meeting minutes as part of your due diligence.
How do I check the body corporate's financial health?
Review the financial statements, LTMF balance, and maintenance plan. Compare the LTMF to upcoming major works to assess adequacy.
What is a body corporate manager?
A professional company or individual employed by the body corporate to handle administration, levy collection, maintenance coordination, and compliance.
Start with a Title Search
Understanding a unit title property starts with the certificate of title. It shows your unit entitlement, registered interests, and the legal structure of the development.
Certificate of Title NZ provides:
✅ Unit title searches — complete with entitlement information
✅ Fast delivery — within 2 hours
✅ Supporting documents — body corporate instruments available
✅ Expert service — we understand unit title complexities
Buying a unit title property? Get your title search first and understand the full picture before you commit.
The three disclosure statements every unit-title buyer should get
Pre-contract disclosure is only the first of three disclosure statements in the Unit Titles Act. Many buyers stop after the first and miss the two that matter most.
- 1. Pre-contract disclosure statement: given before you sign. Your first look at levies, the long-term maintenance plan, insurance, and any known weathertightness or structural issues.
- 2. Pre-settlement disclosure statement: provided shortly before settlement, and the Act sets a minimum number of working days. It confirms the current position, including outstanding levies on the unit, rule changes, and any proceedings against the body corporate.
- 3. Additional disclosure statement: you have to ask for it and generally pay for it. It opens the body corporate's records, including maintenance history, finances, insurance, contracts and governance. For an older or larger complex, this is where the real due diligence happens.
Pre-contract tells you enough to decide whether to make an offer; pre-settlement confirms nothing has slipped; additional disclosure is the deep dive that stops you buying a lemon.
What changed under the Unit Titles Amendment Act 2022
The rules were significantly strengthened by the 2022 Amendment Act. Key changes buyers should know:
- Longer maintenance planning for large developments: larger developments must have a longer, more detailed long-term maintenance plan.
- Stronger, standardised disclosure: weathertightness and earthquake issues, several years of financials, minutes, known defects, and how upcoming works will be funded.
- Better governance: clearer duties and a code of conduct for body corporate managers and committees.
Ask which regime the body corporate operates under, whether its long-term maintenance plan meets current requirements, and whether it has been reviewed recently.
How a body corporate actually makes decisions
- The AGM sets levies, approves the budget and elects the committee. Reading the last two or three AGM minutes is one of the most revealing things a buyer can do.
- The committee handles day-to-day matters; larger complexes engage a professional body corporate manager.
- Ordinary versus special resolutions: routine decisions pass by simple majority; bigger ones need a special resolution at a much higher (special) majority.
- Voting power is not always equal: it is often weighted by unit entitlement, not one vote per unit. Check your unit entitlement on the title.
What to do if disclosure is late, missing or wrong
The disclosure regime comes with buyer remedies. If the seller fails to provide a required disclosure statement, provides it late, or it turns out to be incomplete or inaccurate, you may have the right to delay settlement or, in some cases, cancel. This is subject to conditions and timing, so take legal advice. Give every disclosure statement to your lawyer straight away, cross-check it against the body corporate's minutes and financials, and do not waive your right to the pre-settlement disclosure just to speed things up.
When am I supposed to receive the pre-settlement disclosure statement?
Shortly before settlement. The Act requires it no later than a set number of working days before the settlement date. If you do not receive it, tell your lawyer.
Should I request an additional disclosure statement?
If the complex is older or larger, or you have any doubts about its maintenance or finances, yes. It is the deep dive into the records; you generally pay for it and must request it within set timeframes.
Do I inherit the previous owner's unpaid levies?
Unpaid levies typically attach to the unit, so arrears can become the new owner's problem, which is exactly what the pre-settlement disclosure is designed to reveal.
What is a unit entitlement and why does it matter?
It is the figure on the title that sets your share of the body corporate, usually both your levy share and your voting weight. Check it before you buy.
Does the body corporate's insurance mean I do not need my own?
The body corporate usually insures the building itself, but that often does not cover your contents, and there can be gaps. Confirm the policy scope in the disclosure documents and talk to your own insurer.