1. November 2014 Presented by: Kay Keam Current issues with Unit Titles

2. Introduction 1972 Flats, not apartments Largely residential Low rise 2010 4,000 people living in Hobson Street Leaky buildings Mixed uses

3. Topics for today Disclosure Body corporate rules Selling off plans Issues for vendors and purchasers Other issues under the Unit Titles Act

4. Disclosure Pre Contract Pre Settlement AdditionalTurnover

5. Pre Contract Disclosure Prescribed form Content – Levies – Maintenance in next 12 months – Funds – Weathertightness – Unit titles and conveyancing 101 – Cost of additional disclosure No statutory consequences

6. Pre Settlement Disclosure Details prescribed but not form DBH template Content – Unit and body corporate number – Levies and charges for unit and debts by other units – Repairs of building elements and infrastructure – Interest rate – Litigation against body corporate – Changes from default operational rules since disclosure Body corporate certificate Consequences for non disclosure but no approval rights Deposit and disclosure tension if long term settlement

7. Additional Disclosure Under used Prescribed form and DBH template

8. Content of additional disclosure Contact details for body corporate and committee Funds Creditors Expenses Debtors Insurance

9. Content of additional disclosure (cont.) Contracts Ground leases Motions at last meeting Rules Long term maintenance plan

10. Additional disclosure Can ask for part Timing for request Right of cancellation if no disclosure Need right to approve Deposit Paying for it

11. Turnover disclosure Developer When sells 25%

12. Content of Turnover disclosure – Date – As built plans and specs – Assets and liabilities of body corporate – Leases/licences of common property – CCC – Maintenance schedules – Resource consent and heritage obligations – Warranties and guarantees – Fire evacuation plans and fire protection systems – Building WOF – Compliance schedule – Maintenance and service contracts

13. Body Corporate Rules Default rules 1.Owner or occupier must not: a)Damage or deface common property; b)Leave rubbish or recycling material on the common property; c)Create noise likely to interfere with the use or enjoyment of the unit title development by other owners or occupiers; d)Park on the common property except in designated areas or as the body corporate consents; e)Interfere with the reasonable use or enjoyment of the common property by other owners or occupiers. 2.Owner or occupier must dispose of rubbish hygenically and tidily.

14. Body Corporate rules Different from old Act Very basic

15. Body Corporate Rules DBH guidelines ADLSi model operational rules Careful review Ultra vires

16. Selling Off Plans Conditions Variations Substitutions Encumbrances Body corporate rules Sunset dates Accruals clause Maintenance period

17. Issues for vendors and purchasers Right of cancellation Consent to alterations Encroachment into common property Remediated properties Disclosure of weathertightness issues Mortgagee sale

18. Other issues under the Unit Titles Act Appointment of a chairperson Long term maintenance plans Governance and advice

19. Kay Keam ktk@martellimckegg.co.nz