Buying an apartment, townhouse, or retirement village unit in New Zealand? You're likely dealing with a unit title. Here's your complete guide to how unit titles work, what to check, and how to protect yourself before buying.
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 unit (such as an apartment, townhouse, or commercial space) within a larger development, while shared areas like lobbies, lifts, gardens, and driveways are owned collectively by all unit owners through a body corporate.
Each unit has its own Record of Title with a unique identifier, and each owner holds their unit as a stratum estate in freehold — meaning you own the defined space within the building, not necessarily the land beneath it.
Key Components of a Unit Title
🏢 Principal Unit
Your apartment or townhouse itself — the private space you own exclusively. Boundaries are defined by the unit plan deposited with the official land registry.
🅿️ Accessory Unit
Additional spaces allocated to your unit, such as a car park, storage locker, or balcony. These are registered separately but linked to your principal unit.
🌳 Common Property
Everything that's not a principal or accessory unit — lobbies, stairs, lifts, gardens, pools, driveways. Owned collectively by all unit owners and managed by the body corporate.
📊 Ownership Interest and Utility Interest
Your share of the body corporate is determined by two figures: ownership interest (your voting rights and share of assets) and utility interest (your share of operating costs like insurance and maintenance levies).
The Body Corporate: What You Need to Know
When you buy a unit title property, you automatically become a member of the body corporate. This is not optional. The body corporate is responsible for:
- 🚩Low levies aren't always good news — Unusually low body corporate levies could mean maintenance is being deferred. Ask for the long-term maintenance plan (LTMP) to check.
- 🚩Special levies — The body corporate can impose one-off special levies for major repairs (roof replacement, re-cladding). These can be tens of thousands of dollars per unit.
- 🚩Weather-tightness issues — Leaky building syndrome affected many NZ apartments built between 1994–2004. Check the building's history carefully.
Pre-Contract and Pre-Settlement Disclosure
The Unit Titles Act 2010 requires sellers to provide two important disclosure statements:
💡 Good to know:
If the seller fails to provide a pre-contract disclosure statement, you may have the right to cancel the agreement. Always ask your solicitor to review the disclosure carefully — it can reveal hidden costs and issues.
What to Check Before Buying a Unit Title Property
Costs of Owning a Unit Title Property
Frequently Asked Questions
🔍 Search Your Unit Title
Order a Record of Title to check ownership, levies, and registered interests
Order Your Search →Certificate of Title NZ is an independent service providing property title searches from New Zealand's official land registry.