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Relief for Small Unit Title Developments

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 Kay Keam or the partner who usually looks after you.

 

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