Buying an apartment, townhouse, or any property within a multi-unit development in New Zealand? You'll likely encounter a unit title. This guide explains how unit titles work under the Unit Titles Act 2010, what body corporate means for you, and the critical checks to make before signing.
What Is a Unit Title?
A unit title is a form of property ownership that allows individual ownership of a defined space (your "unit") within a larger development, combined with shared ownership of common areas. It's governed by the Unit Titles Act 2010 and is the standard ownership structure for apartments, many townhouse developments, and some commercial buildings.
When you buy a unit title property, you become a member of the body corporate — the collective of all unit owners responsible for managing shared areas and making decisions about the building.
Key Components of Unit Title Ownership
🏠 Principal Unit
Your individually owned space — the apartment or townhouse itself, defined by specific boundaries (usually the interior surfaces of walls, floor, and ceiling).
🅿️ Accessory Unit
Additional spaces allocated to your unit — commonly car parks and storage lockers. These are separately defined on the unit plan.
🏢 Common Property
Everything that isn't a principal or accessory unit — lobbies, lifts, stairwells, driveways, gardens, roofs, and building structure. Owned collectively by all unit owners.
📊 Utility Interest
Your share of the common property and body corporate costs, expressed as a percentage. This determines your voting rights and levy contributions.
Body Corporate: What You Need to Know
The body corporate is automatically created when a unit title development is registered. Every unit owner is a member — there's no opting out. Key responsibilities include:
- 🚩Underfunded maintenance — A body corporate with an inadequate long-term maintenance fund may need to impose special levies for urgent repairs, potentially costing thousands
- 🚩Weathertightness issues — Some buildings from the 1990s-2000s have leaky building problems with repair costs running into millions
Pre-Settlement Disclosure and Pre-Contract Disclosure
The Unit Titles Act 2010 requires sellers to provide specific disclosures to buyers:
Essential Checks Before Buying a Unit Title
- ☐ Order the Record of Title to confirm ownership and registered interests
- ☐ Review the unit plan to confirm boundaries and accessory units
- ☐ Request and review body corporate minutes (at least 2 years)
- ☐ Check the long-term maintenance plan and fund balance
- ☐ Review current levy amounts and any proposed increases
- ☐ Check for weathertightness claims or building defect issues
- ☐ Read the body corporate rules — especially about pets, parking, and renovations
- ☐ Confirm insurance coverage (building sum insured vs replacement cost)
Frequently Asked Questions
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