By Kay Keam - 11 Aug 2011
The Unit Titles Act 2010 requires owners of unit title
properties to have a long term maintenance plan. Owners of separate
units may wish to opt out of this obligation by passing a special
resolution. This requires at least 75% of owners to agree. If a
special resolution is passed then each owner becomes responsible
for the maintenance of their own unit only and there will be no
obligation to have a long term maintenance plan and fund. Owners
may also opt out of the Act's requirement for an independent
auditor by passing a special resolution.
The position in relation to insurance has also changed.
Previously the body corporate was required to insure the units,
accessory units and common property for replacement value.
Now, where the units stand alone, the owners can pass a special
resolution to require each owner (rather than the body corporate)
to insure their own unit. The body corporate would remain
responsible for insuring all improvements within the common
property. Indemnity cover is also permitted if full
replacement cover is not available.
Owners are still required to keep a register of owners. That
register must record the owners' names, unit numbers, addresses for
service and contact details.
Your existing Body Corporate Rules will only continue to apply
until 1 October 2012. If you have not replaced those rules by
then the new rules in the Act will apply. Those new rules are
very brief, vague and in our view unsatisfactory. We will
discuss new disclosure requirements in another blog shortly.
To discuss this further please contact Elise Markwick
or the partner who usually looks after you.