Review of the Unit Titles Act 1972
Footnotes
1 Note: responsibility for building related policy transferred from the Ministry of Economic Development to the Department of Building and Housing on 1 November 2004. Any queries about this discussion document should be directed to the Department on 0800 83 62 62.
2 Bodies Corporate and Intensive Housing in Auckland: A Preliminary Assessment January 2003 and Unit Titles Act 1972: The Case for Review, Discussion Document, August 2003.
3 In the Auckland region alone it is estimated that at least 45,000 people are living in unit title property today, and that by 2050, this number could rise to around 500,000 people. (Auckland Regional Council, Unit Titles Act 1972: The Case for Review, p5.)
4 Responsibility for building-related policy transferred from the Ministry of Economic Development to the Department of Building and Housing on 1 November 2004. Any queries about this discussion document should be directed to the Department on 0800 83 62 62.
5 Under section 4 of the Unit Titles Act, units must be defined by reference to a building or buildings "already erected" on the land. This, and other similar requirements, form one of the aspects of the Act for which reform has been proposed.
6 The Unit Titles Act also provides for the division of a plot of land into a number of unit titles, on each of which a single "unit" may be erected. The issues which have given rise to the review of the Act tend to relate to more complex developments where one or more buildings, often multi-storeyed, are divided into units.
7 In technical terms, tenants in common hold undivided shares in a property. Their share is undivided, in the sense that the boundaries of that share have not been established, but the right to that share already exists. By contrast, joint tenants together own the whole property, and have no right to a distinct share.
8 For example, dealings with and additions to the common property, changes to Second Schedule (compulsory) Rules, decisions not to apply insurance moneys to reinstatement, and decisions on redevelopment.
9 For example, an application to cancel a unit plan (in effect the mechanism for winding up a body corporate).
10 In re Bell, High Court, Wellington, M 243/92, Jane J, 22 October 1992.
11 Unit Titles Act, section 33.
12 In response to these concerns, the Auckland Regional Council published The Mysteries of Bodies Corporates; A guide to the rights and responsibilities of apartment owners, in August 2003, which is available for free from the Regional Council.
13 See, for example, Part 3 "Finances of Strata Scheme" of the New South Wales Strata Schemes Management Act 1996.
14 Chambers and others v Strata Title Administration Limited (High Court Auckland, CIV-2003-404-490, Paterson J, 22 December 2003).
15 Godoy v Body Corporate No. 164980 (High Court Auckland, M1906/98, Fisher J, 14 June 1999).
16 The World Vision of New Zealand Trust Board v Seal and others (Body Corporate No. 91113) (High Court Auckland, M1299-SD02, Heath J, 12 November 2003).
17 The main elements of the possible Victoria approach are:
• the first tier would be an internal process requiring members to talk about the issue and resolve the issue themselves
• the second tier would be to have an expert body corporate trained conciliator to assist the parties to resolve the dispute themselves (similar to the Building Advice and Conciliation Victoria Service)
• the third tier would have an expert body corporate person or body able to determine day-to-day issues that need to be resolved quickly, for example, matters relating to rules and meeting procedures
• the fourth tier would have an expert court or tribunal, which could resolve more complex technical and legal issues.
The aim of the proposed model is to provide a flexible, low-cost model that empowers members and builds relationships within bodies corporate. The proposal for consideration recognises that some issues may be more appropriately and cost-effectively handled by the body corporate members themselves. Access to the government dispute resolution services will only be available if an attempt to resolve the dispute through the body corporate internal process has been formally recorded in minutes.
Future Directions Paper, Bodies Corporate, Victorian Government, 2004.
18 Responsibility for building-related policy transferred from the Ministry of Economic Development to the Department of Building and Housing on 1 November 2004. Any queries about this discussion document should be directed to the Department on 0800 83 62 62.
19 Unit Titles Act, section 33.