Body Corporate?

[kanwal13]

Hi

Can anyone please advise if there is a legal requirement to have a body corp?
We are looking at buying a unit where they don't have a body corp set up. Every owner has taken up their own property insurance. If we want to set up one after we bought the unit, can we do that?

Cheers
Kanwal

[Nick G]

I think everyone has to want to do it. Speak with your lawyer.

[artemis]

If you are sure they are unit titled there is already a body corporate of all unit owners, though inactive it seems. The BC has very specific legal responsibilities, mainly but not only as the owner of the common property. And these responsibilities are soon to be extended by new legislation.

If you are interested in buying, suggest you ask the real estate agent or the vendor how they intend to meet the requirements of the Unit Titles Act at least for for disclosure to a potential buyer.

[m_shah93]

Hi Kanwal,

I have a fair bit of idea which unit you are talking about, all I would suggest you to see the drainage system of the roof and design of the roof of this particular unit. This will save you from future leaky roof or home. There is a reason why they mention about body corporate in sales and purchase agreement.I know agent has informed you that no one wants body corporate; my theory is there is a major role of body corporate now and incoming future.

I hope you understand my point of view.

Regards,

[HPM]

Hi. Yes, it is a legal requirement to have a BC with any Unit Title properties. This is originally set up when the property is developed.

In fact a BC is legally required to at least have/do the following:
- You must have an AGM in every calendar year
- You must have a chairman
- You must have a Long Term Maintenance Plan, which has to be updated at least every 3 years.
- You must keep a register of owners
- You must have a set of operational rules
- You must keep financial statements

Plus other responsibilities in the Unit Titles Act.

This is a really good introduction

http://issuu.com/stratacommunityassociationnz/docs/strata_community_association_nz_-_i

[Wellington Broker]

Hi. Yes, it is a legal requirement to have a BC with any Unit Title properties. This is originally set up when the property is developed.

In fact a BC is legally required to at least have/do the following:
- You must have an AGM in every calendar year
- You must have a chairman
- You must have a Long Term Maintenance Plan, which has to be updated at least every 3 years.
- You must keep a register of owners
- You must have a set of operational rules
- You must keep financial statements

Plus other responsibilities in the Unit Titles Act.

This is a really good introduction
http://issuu.com/stratacommunityasso...ciation_nz_-_i

If I'm an owner in a body corp can I have access to the register of owners and their contact details? Also what if you don't think the LTMP is up to scratch? Oh and if there's been no AGM since February 2016 what can unit title owners do?

[artemis]

If I'm an owner in a body corp can I have access to the register of owners and their contact details? Also what if you don't think the LTMP is up to scratch? Oh and if there's been no AGM since February 2016 what can unit title owners do?

An owner can request the contact details from the BC chair or management company. But this can be denied under Regulation 4 of the UTA regs. Could knock on some doors and ask owners if access to contact details is turned down. Or get onto the BC committee. That contact list or door knocking could help a lot with lobbying to go onto the committee and once there you would have better access to information.

About the LTMP, I would start by raising the issues with the Chair, at the same time the late AGM is pointed out. Along with the statutory requirements for both.

There is the ability for an extraordinary GM to be called if 25% of owners request it.

And disputes can go to the Tenancy Tribunal or the District Court, depending on the $ involved.

Any one raising the above issues should not be surprised to be co opted onto the BC committee!
.

[kanwal13]

Thanks for replies guys. How do I find out if there is already one (as you guys suggested there must be one) ? Who do I go to?

[artemis]

Ask the agent to find out from the vendor who will be providing the required disclosures.

There is always a BC for unit titled properties. But it needs a BC committee and may also have a BC external manager. It it doesn't have a means of meeting its legal responsibilities it is in breach of the Unit Titles Act.

If you decide to buy, you can set up the BC Committee. It's not too difficult to do, and roles can come with an honorarium. Of course that assumes there will be levies on owners.

[kanwal13]

Thanks every one. I ll do that.

[Meehole]

I am sure Govt passed legislation requiring a block of units to all have the same insurer, post earthquake. I know when we were down in ChCh in a block of 4 units one was insured with AMI, one with Tower, one with State and one with no insurance. State might have decided their client was entitled to a rebuild, AMI's to a repair and Towers to a repair. With party walls it became impossible to come to an agreement so eventually, I know that Tower was one company that took on the job of organising the repair/rebuild and dealing with all the other insurance companies and owners. It was a lesson learned for Gerry going forward.

[kanwal13]

Thanks guys, after doing some more digging, found out these are not titled as units, these are cross lease flats hence no body corp. Thanks all for your help.

[Bobsyouruncle]

You don't have to have a body corp, or didn't have to anyway. When we unit titled a block of flats there was no legal requirement.

[Merlot Mike]

If you need assistance sorting your BC out, bodycorpservices.co.nz offer a one-off consulting service after which you can run things yourself. We did that here in my block. We save a lot in insurance now as we have a proper BC insurance plan which is much cheaper that the individual home policies that were in place before, also we get one valuation done for the entire block so that we know we are covered for the right amount. Before each owner was proving their own and they varied wildly.