Review of the Unit Titles Act 1972 - Discussion Document, May 2006

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The review and consultation so far

In November 2003 the government announced a review of the Unit Titles Act 1972. Since then we have carried out research and analysis, studied the laws of other countries, hired experts to advise us and consulted with industry groups and with the public.

The review is being done by the Department of Building and Housing. The Ministry of Justice and Land Information New Zealand (LINZ), who jointly administer the Act, are closely involved in the review.

The review is linked to other laws and regulations which are administered by these and other government agencies, such as the:

• Land Transfer Act 1952
• Property Law Act 1952
• Weathertight Homes Resolution Services Act 2002
• Residential Tenancies Act 1986
• Building Act 2004
• Retirement Villages Act 2003
• Resource Management Act 1991.

First discussion document, November 2004

On 15 November 2004 we released a discussion document entitled Review of the Unit Titles Act 1972 for public consultation, because we wanted to find out exactly what the main problems were with the Act. You can find this discussion document on our website at www.dbh.govt.nz under ‘Unit Titles Review’.

We held public consultation meetings in Auckland, Wellington and Christchurch in February 2005 and met with professional bodies.

Submissions on the 2004 discussion document

The closing date for submissions on the first discussion document was 31 March 2005. We received 138 submissions from a good cross-section of those involved with unit title developments.

Submitters included:

• unit owners
• bodies corporate
• aligned professionals, such as body corporate management companies, solicitors and surveyors
• professional institutes such as the New Zealand Law Society, the New Zealand Institute of Surveyors, the Property Institute of New Zealand, the New Zealand Property Investors’ Federation and the Property Council of New Zealand
• local authorities, regional councils and other government agencies.

The main problems identified

We have analysed the submissions, done more research and policy development, looked at what happens overseas and studied the feedback from consultation meetings. We think the main problems for the unit title sector are:

• the Act doesn't have a clear purpose, its provisions are not clear and it is inflexible
• there is not enough transparency and accountability in the way unit title developments are governed and managed
• disclosure provisions are not adequate
• buyers and owners of units are not well informed
• there are barriers to workable community living and working environments
• the dispute resolution processes aren't appropriate.

This discussion document

We have met regularly with industry experts, and with a representative group from across the sector, to hear their views and to help us develop draft proposals to address the issues. We have now developed this second discussion document which contains draft proposals for changes to the Act. We invite you to make a written submission on these proposals.

Once your submissions have been considered, we will develop final proposals. The proposals will then go to the government for approval. If they are approved they will form the basis of new legislation for unit title developments.

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