Unit Titles Act 2010

The Unit Titles Act 2010 (UTA) applies to buildings where multiple owners hold a type of property ownership known as a unit title. On this page you will find information about what the Unit Titles Act is and who it covers, as well as the recent changes.

About The Unit Titles Act

The Unit Titles Act 2010 covers: 

  • the creation and ownership of unit title developments 
  • the rules around how body corporates are run  
  • the rights and obligations of the body corporate 
  • what information must be disclosed to potential buyers of a unit title property 
  • dispute resolution 
  • a range of technical and title survey matters. 

See the Unit Titles Act 2010  

See the Unit Titles Act 2010 on the www.legislation.govt.nz website

Recent changes to the unit titles law

The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 (the Amendment Act) became law on 9 May 2022. 

The Amendment Act aims to improve the way unit titles are run, giving more transparency for owners and strengthening the rules around the duties and expectations of body corporates. 

The changes in the Amendment Act came into force across three key dates:

  • Provisions to support remote attendance at meetings – in force on 9 December 2022.
  • Most provisions – in force on 9 May 2023.
  • Provisions relating to the long-term maintenance regime, the contract of service with a body corporate manager, and the Regulator’s (MBIE) powers – in force on 9 May 2024.

The ‘in force’ date is when people need to comply with the new law. 

The final set of changes are supported by regulations that prescribe:

  • the types of information that have to be provided to the regulator on request
  • electronic voting rules and procedures, and
  • other minor matters including – clarification around the process for proxy voting procedures, requirements in the pre-purchase disclosure statement for off-the-plan units, and minor corrections to some of the regulated forms.

More information about the Amendment Act and the regulatory changes, including guidance will be made available on the Unit Titles website(external link)

The Ministry of Housing and Urban Development previously consulted with the public on these proposals in 2023. The discussion document, which outlines the preferred proposals for addressing and implementing the regulations, is available here:  Discussion document - Unit Titles Act 2010 regulations (PDF, 1016 KB)

Unit Titles

A unit title is a form of property ownership where each owner owns a defined part of the development, such as an apartment, and has shared ownership of common property, such as driveways and lifts. The Unit Titles Act 2010 (UTA) provides a regulatory framework for the ownership and management of unit titles.

Types of Unit Title Properties

Owners in a unit title property own a defined part of that property, e.g. an apartment or a townhouse, and share common areas such as lifts, lobbies or driveways with other owners.  

This combination of individual and shared ownership of land and buildings, means owners in a unit title property have a different set of rights and responsibilities than if they owned a free-standing property. 

Residential unit title properties

Residential unit title properties include apartment blocks, townhouses and terraced housing. 

Commercial unit title properties

Commercial unit title properties include office blocks, industrial or retail complexes and shopping malls.


What a body corporate does

All owners of a unit title property are automatically part of the body corporate. The body corporate must hold an annual general meeting (AGM) at least once a year to discuss body corporate matters and vote on decisions affecting the complex. 

A body corporate is responsible for the management and maintenance of shared areas and the property as a whole. This includes:  

  • maintaining and repairing common property 
  • establishing a long-term maintenance plan 
  • taking out insurance that covers the buildings on the property 
  • levying owners for contributions to fund the maintenance and operating expenses of the body corporate 
  • setting a budget and managing the body corporate's funds 
  • making and enforcing body corporate rules. 

Download a handbook of operation guidelines for a body corporate(external link)

Find out more about Unit Titles and how a body corporate works on the Unit Titles website(external link)

New regulations

Changes and additions to the Unit Titles Regulations 2011 will take effect on 9 May 2024. The changes are summarised below. 

Detailed guidance about the regulations will be made available on the on the Unit Titles website(external link)

Information requirements

Bodies corporate and body corporate managers are required to keep certain documents for three years and provide them to the regulator (MBIE) if asked.

The following documents are already required to be provided in a pre-contract disclosure statement and/or pre-settlement disclosure statement, and will now also need to be retained in case requested by the regulator:

  • Details of all body corporate funds and bank accounts
  • Financial statements and audits
  •  Assessment of ownership interest
  • Levy information
  • Long-term maintenance plan and the next review date
  • Remediation, earthquake prone and land defect reports
  • Register of all unit owners
  • Notices, agendas and minutes of body corporate and committee meetings
  • Contact details for any current body corporate or committee chairperson or current or past body corporate manager (current body corporate manager)
  • Details of all current insurance policies, including annual insurance certificate
  • Details of any proceedings in any court or tribunal that the body corporate is involved in

The following documents will need to be retained in case requested by the regulator:

  • Documents relating to utility interest decisions
  • Notices from body corporate to owners regarding entering a unit
  • Notice of designated resolution
  • Notices of delegation from the body corporate to the body corporate committee
  • Report from the body corporate committee to the body corporate on the exercise of the duties and powers delegated to it
  • Written agreement of body corporate managers’ terms of employment/engagement
  • Body corporate operating rules and any amendments
  • Records related to any current warranties from third parties for common property, assets owned by the body corporate, or building elements and infrastructure
  • Notice of resolution to be decided without general meeting
  • Notice requiring an owner to sign any document to carry out a resolution
  • Conflict of interest register for the body corporate committee
  • Conflict of interest register for the body corporate manager
  • Service contracts

Electronic voting and remote attendance

The regulations provide procedures for electronic voting and for remote attendance at general meetings. A body corporate can decide that “electronic voting” can be undertaken by a vote sent in a postal voting form by email or other electronic means. It could also include an online voting platform.

A body corporate has to follow certain procedures:

  • providing information to unit owners about:
    • how to attend remotely;
    • how to cast a pre-meeting vote electronically;
    • the date/time of return for electronic pre-meeting votes;
    • how to cast a vote electronically during the meeting; and
    • a statement on the validity of an electronic pre-meeting vote if the general meeting is adjourned, or if the motion is materially altered at the meeting.
  • providing unit owners with access to electronic voting from at least the minimum required time for a notice for that type of general meeting (e.g. Annual General Meeting).
  • having reasonable measures for verifying the identity of unit owners using electronic voting. These measures will not be prescribed in regulations, so it is up to each body corporate to decide what is reasonable for their situation.
  • taking reasonable steps to ensure the electronic facilities are sufficient that remote attendees can participate and vote at the meeting both via audio and visual inputs.
  • keeping voting records and proxy appointment forms for 28 days following a general meeting.

The regulations will also set out rules for when pre-meeting electronic votes are valid. They are:

  • not counted where a motion is materially changed at the general meeting;
  • valid if the general meeting is adjourned, unless the unit owner attends the reconvened meeting.

Transitional rules for electronic voting provisions

The regulations include transitional provisions for electronic voting when a notice for a general meeting of a body corporate has been issued before 9 May 2024, and the meeting date is on or after 9 May 2024.

If this applies, then –

Information to be given to unit owners

The body corporate must, if reasonably practicable, send each unit owner:

  • details on how to attend the meeting remotely; and
  • the electronic voting information.

If they cannot send this information before the meeting, it will not affect the meeting's validity or the business discussed. See below under ‘Casting electronic votes’ to see how votes are cast in this situation.

Electronic voting

If reasonably practicable, electric voting must be made available to eligible voters from the time the electronic voting information is given to unit owners.

 

If it is not reasonably practicable, electronic voting must be made available as soon as reasonably practicable after the electronic voting information is sent.

Casting electronic votes

If the body corporate sends the electronic voting information before the meeting:

  • voters using electronic voting must follow the instructions given in that information.

If they did not send the information before the meeting:

  • voters must cast their electronic votes by emailing the postal voting form to the body corporate's ordinarily used email address.
  • an electronic vote must be received before the relevant vote is held at the meeting.

Unit owners can also continue to choose to cast their votes by postal or proxy means or by attending a meeting in person or remotely.

Other minor regulatory changes

The regulations have several minor changes, including:

  • the chairperson of a meeting does not need to ensure the proxy holder follows the directions on the proxy appointment form.
  • a pre-settlement disclosure statement for off-the-plans units will also include the following documents (if they exist at the time):
    • details of any contract that will bind the body corporate or the unit owner after the settlement date
    • details of any obligation arising from the decision of a court or tribunal that will bind the body corporate or the unit owner after the settlement date
    • a copy of the minutes of the most recent general meeting of the body corporate
    • a copy of the long-term maintenance plan
    • a copy of the written agreement setting out the body corporate manager’s terms of employment or engagement
    • a copy of the body corporate operational rules that apply to the body corporate, including any amendments, revocations, or additions to the rules that have been made by the body corporate but that do not yet have effect.

You can read the regulations on the Legislation website(external link)

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