Discussion paper on regulations to support the Unit Titles Act 2010
Purpose of this paper
This paper asks for your views on proposals for regulations to support the Unit Titles Act 2010 (the Act), and whether any other regulations are necessary to help you comply with the requirements of the Act.
What is the Unit Titles Act?
The Unit Titles Act 2010 (the Act) provides a legal framework for the ownership and management of unit title developments.
One of the purposes of the Act is to set up a flexible and responsive regime for governing unit title developments and to protect the integrity of developments as a whole.
The Act covers the creation and ownership of unit title developments, forming a body corporate and body corporate committee, and the rights and responsibilities of the body corporate and individual unit owners.
Background
In 2004 a review of the Unit Titles Act 1972 (the 1972 Act) commenced. The aim of the review was to evaluate the effectiveness of the 1972 Act and work out what was needed to update the legislation.
This review and public consultation work undertaken in 2005 and 2006 showed the 1972 Act needed major change to cover the variety of unit title developments in the 21st century.
The Unit Titles Bill introduced these changes to the legislation. Parliament passed the Bill on 1 April 2010 and the Bill received Royal assent on 19 April 2010, making it the Unit Titles Act 2010 which repeals and replaces the 1972 Act.
What are regulations?
Regulations are laws made under Acts of Parliament, and usually deal with matters of detail, implementation, technical matters or matters likely to need frequent change or updating.
Some requirements in the Act specifically require regulations to give clear detail to ensure people know how to comply with the Act. Section 217 of the Act gives regulation-making powers for specific purposes. While there are wide regulation-making powers under section 217, the Act does not require that all matters are regulated. An alternative to regulation is for the Department of Building and Housing (the Department), who will administer the Act, to issue guidance material on best practice.
There is a big difference between regulation and guidance material.
- If we provide for something in regulations, it is law and you have to comply with it.
- If we provide consumer guidance, it is not law but it will provide the “best practice” method for complying with the Act.
Issues for discussion
This discussion document asks for your comment on the following matters:
PART A: Required regulations
The Act states that certain regulations must be made to support some provisions in the Act. This part of the discussion document asks your opinion on specific proposals for these regulations and whether you think there is anything else we should consider.
We would also like to know how the proposals will affect you financially, and if the proposals will advantage or disadvantage you in any way.
Part A contains the following sections:
PART B: Possible regulations
There are some provisions in the Act that could be supported by regulations, though this is not specifically required. The Department will produce consumer guidance and educational material to help you interpret and comply with the Act. This part of the discussion document seeks your opinion on whether these provisions require regulation as well as guidance.
As with Part A, we are also keen to know how the proposals will affect you financially, and whether the proposals will advantage or disadvantage you in any way.
Part B contains the following sections:
PART C: Forms and certificates
There are forms and certificates that are necessary for planning and building a unit title development. Land Information New Zealand requires these forms to contain certain information. There are also forms and certificates necessary for the effective running of a body corporate. Regulations are used to prescribe the content of these forms and certificates. Part C lists these forms and certificates for your information only and does not require feedback or comment.
Issues out of scope
This discussion document does not cover the:
- requirements contained in the Unit Titles Act 2010 itself. These requirements were subject to public consultation during select committee consideration of the Unit Titles Bill in 2009
- law relating to cross-lease, flat-owning companies or company share developments.
How to comment
You can make a written submission on the issues discussed in this paper by 10 June 2010. Please complete the form on page 35 with your submission and send to:
Post or courier:
Department of Building and Housing
Level 6, 86 Customhouse Quay
PO Box 10-729
Wellington 6143
Attn: Unit Titles Act 2010 Regulations Team
Email:
unit.titles@dbh.govt.nz
Fax:
(04) 494 0290 (please put ‘Unit Titles Act 2010 Regulations Consultation’ in the subject line).
You can download this document as a PDF [920 KB, 49 pages] .You can also request for a printed copy by calling the Department on 0800 242 243.
You can also make an online submission.
Official Information Act
Please note that all written responses will be public information. Responses may be the subject of requests for information under the Official Information Act 1982 (OIA). The OIA specifies information is available on request unless there are grounds for withholding specific information, such as the information is commercially sensitive or personal. Any decision to withhold information requested under the OIA is reviewable by the Ombudsman.
We have defined the words in bold in the glossary (pages 30-31)