Thinking about buying an apartment, townhouse, or any property with a body corporate in New Zealand? Unit titles come with unique rules, shared costs, and legal obligations that every buyer must understand before signing.
What Is a Unit Title?
A unit title is a form of property ownership governed by the Unit Titles Act 2010. It allows individual ownership of a defined space (your unit) within a larger development, while sharing ownership of common areas like driveways, gardens, lifts, lobbies, and structural elements.
Unit titles are used for apartments, townhouse complexes, retirement villages, commercial buildings, and mixed-use developments. Each unit has its own Record of Title registered with the official land registry, and ownership is managed through a body corporate.
š” Good to know:
Every unit title development automatically creates a body corporate. All unit owners are members ā there's no option to opt out. The body corporate is a legal entity that manages the common property and enforces rules.
Understanding the Body Corporate
What the Body Corporate Does
Body Corporate Levies
Levies are the ongoing fees paid by each unit owner to cover shared costs. These typically include building insurance, maintenance, cleaning, gardening, management fees, and contributions to the long-term maintenance fund.
Levies vary enormously ā from $1,500/year for a simple townhouse complex to $15,000+/year for a large apartment building with a pool, gym, and concierge. Always ask for the current levy amount and the long-term maintenance plan before buying.
Key Documents Every Buyer Must Request
Before purchasing a unit title property, you need more than just the Record of Title. The Unit Titles Act 2010 gives buyers the right to request a pre-settlement disclosure statement and an additional disclosure statement from the body corporate.
Red Flags to Watch For
- š©Low long-term maintenance fund ā If the fund is underfunded, expect special levies (large one-off payments) for major repairs like re-roofing or earthquake strengthening.
- š©Weather-tightness issues ā NZ's leaky building crisis particularly affected unit title developments from the 1990s-2000s. Check for any past or ongoing claims.
- š©Active disputes ā Ongoing body corporate disputes can be costly and stressful. The disclosure statement must reveal these.
- š©Restrictive rules ā Some body corporates ban pets, restrict Airbnb rentals, or limit renovations. Make sure you can live with the rules before buying.
Unit Entitlements: Why They Matter
Each unit in a development is assigned a unit entitlement ā a number that determines your share of common costs and voting rights. Unit entitlements are set when the unit plan is deposited and are based on the relative value of each unit.
For example, a penthouse with harbour views might have a unit entitlement of 25, while a smaller ground-floor unit might have 10. The penthouse owner would pay 2.5x more in levies and have proportionally more voting weight at body corporate meetings.
Unit entitlements appear on the Record of Title and can be reassessed under the Unit Titles Act 2010 if they become unfair over time.
Searching a Unit Title Property
Start your due diligence with a title search to understand the legal framework of the unit:
š Search Any Unit Title Property
Get the Record of Title and unit plan delivered within 2 hours
Order Your Search āCertificate of Title NZ is an independent service providing property title searches from New Zealand's official land registry.