Unit Titles Act 2010

163 Implied guarantee by unit owners

• (1) Each owner for the time being of a unit to which this Part applies must be treated as having guaranteed to the lessor—

  • (a) the payment by the body corporate of the rent reserved under the lease on the days and in the manner prescribed in the lease; and

  • (b) the performance or observance by the body corporate of the covenants, agreements, and stipulations contained or implied in the lease to be performed or observed by the lease.

  (2) Each owner for the time being of a unit in a subsidiary unit title development, and the subsidiary body corporate,—

  • (a) are bound by the covenants, agreements, and stipulations referred to in subsection (1)(b); and

  • (b) must be treated as having guaranteed to the lessor the performance or observance by the head body corporate of those covenants, agreements, and stipulations.

  (3) The liability of each owner under the guarantees under subsections (1) and (2)—

  • (a) is limited to the proportion of the rent or other money payable as the ownership interest of that owner’s unit bears to the aggregate ownership interest of all the units shown on the plan; and

  • (b) relates only to rent and other money due or accruing due while he or she is the owner of that unit.

  (4) None of the following releases, exonerates, or in any way affects the liability of any owner under subsection (1) or (2):

  • (a) neglect or forbearance of the lessor in endeavouring to obtain payment of the rent or other money payable under the lease; or

  • (b) neglect to enforce the performance or observance of the covenants, agreements, or stipulations contained or implied in the lease by the body corporate; and

  • (c) time or other indulgence that may be given to the body corporate by the lessor.

  (5) If the owner of a unit pays to the lessor any sum that he or she is liable to pay under this section, that owner is entitled to recover the sum from the body corporate as a debt in any court of competent jurisdiction.

  (6) Nothing in subsection (5) prevents the body corporate from claiming any sum due to it from that owner under the provisions of this Act by way of set-off.

  Compare: 1972 No 15 s 26