Latest News [index] New Unit Titles Act
The new Unit Titles Act 2009 has now come into force. This is intended to improve transparency for buyers and to assist owners to maintain existing buildings.
If you are buying or selling:
Owners selling must now disclose more about an apartment and an apartment building. There are three types of disclosure:
Pre-contract disclosure for buyers by sellers:
- Information about unit title ownership and the vendor's ownership interests;
- the body corporate levy and the body corporate rules;
- any easements or covenants affecting the property;
- the coming year's maintenance and how this will be funded;
- the balance of the body corporate's bank accounts at the end of the last financial year;
- whether there have been any weathertight claims; and
- how to get further information and the cost of this further information.
Additional disclosure information if requested by the buyer:
- more detailed financial information,
- insurance policies,
- third party contracts,
- lease information,
- the text of any resolutions passed at the last annual general meeting,
- details of the long term maintenance plan for the body corporate and whether there are funds on hand to meet these objectives
Pre-settlement disclosure information for a buyer:
Prior to the settlement of a purchase this is similar to the current certificate produced by body corporate secretaries giving brief details regarding the levy payable and any legal proceedings that are pending.
Failures to provide information can result in delays or in some cases cancellation of agreements.
Existing owners
There is a requirement for existing owners to establish a long term maintenance plan of at least 10 years. These plans must:
- identify future maintenance requirements;
- support the establishment of funds for this maintenance;
- provide a basis for levying owners;
- provide guidance for owners regarding annual maintenance decisions.
A fund must be established unless the owners by special resolution (75% majority) elect not to establish such a fund. It has been suggested that apartment buildings without maintenance funds established will be viewed sceptically by buyers.