(1) The registered proprietor of a parcel of land of any of the following kinds may subdivide that land to create a unit title development:

• (a) an estate in fee simple in a parcel of land under the Land Transfer Act 1952:

• (b) an estate as lessee under a memorandum of lease registered under that Act in respect of a parcel of land:

• (c) an estate as lessee or licensee under a lease or licence from the Crown registered under that Act in respect of a parcel of land.

(2) A parcel of land referred to in subsection (1) may be subdivided into—

• (a) 2 or more principal units; and

• (b) the number of accessory units (if any) as the registered proprietor may wish; and

• (c) so much of the land as is not comprised in any unit (in this Act referred to as common property).

(3) Nothing in this section permits the subdivision in accordance with this Act of a parcel of land that is subleasehold land.

(1) The subdivision of land to provide for units is effected by the deposit under the Land Transfer Act 1952 of a plan specifying the units in their relation to a building or buildings (if any) already erected on the land.

(2) An application to deposit the plan must be made in the prescribed form (if any) by the registered proprietor described in section 8(1).

The deposit of a unit plan creates in each principal unit and each accessory unit a stratum estate in freehold or a stratum estate in leasehold or licence, as the case may be, that comprises—

• (a) the fee simple estate or, as the case may be, the estate as lessee or licensee in the unit determinable in accordance section 61 or subpart 2 of Part 4; and

• (b) the beneficial interest in the fee simple estate or, as the case may be, the estate as lessee or licensee in the common property of the unit title development to which the owner of the unit is entitled under section 44(2); and

• (c) the undivided share in the fee simple estate or, as the case may be, the estate as lessee or licensee in all the units to which the owner of the unit is contingently entitled under subpart 2 of Part 4.

(1) A layered unit title development is a grouping of unit title developments in which—

• (a) there is 1 head unit title development; and

• (b) there is at least 1 subsidiary unit title development.

(2) For the purpose of this Act, a reference to the base land in relation to a subsidiary unit title development means the land from which its head unit title development was subdivided.

(3) Examples 2 and 3 in Schedule 1 are diagrammatical illustrations of examples of layered unit title developments.

(1) The owner of a principal unit may subdivide the principal unit in accordance with this Act to create a subsidiary unit title development.

(1A) If a principal unit referred to in subsection (1) has an accessory unit and both units are included on the same computer register, both the principal unit and the whole accessory unit must be subdivided in accordance with this Act to create a single subsidiary unit title development.

(1B) If an accessory unit is subdivided with a principal unit as described in subsection (1A), any reference applicable to the principal unit in this section or any other section of this Act also includes the accessory unit.

(2) A principal unit referred to in subsection (1) may be subdivided into—

• (a) 2 or more principal units; and

• (b) the number of accessory units (if any) as the owner of the principal unit to be subdivided may wish; and

• (c) so much of the principal unit as is not comprised in any new unit (in this Act referred to as common property).

(3) A subdivision referred to in subsection (1) may be done only if the body corporate for the unit title development has, by special resolution, agreed to allow the subdivision.

(5) Sections 192 to 195 (which provide for an objection process) apply to a resolution under this section.

(1) The subdivision of a principal unit to create a subsidiary unit title development is effected by the deposit under the Land Transfer Act 1952 of a unit plan—

• (a) identifying the principal unit to be subdivided; and

• (b) specifying the principal units, accessory units (if any), and common property making up the subsidiary unit title development in their relation to the building or buildings (if any) already erected on the principal unit to be subdivided; and

• (c) showing the relationship of the proposed subsidiary unit title development to each unit title development in a layered unit title development of which it would, after the subdivision, be a part.

(2) The application to deposit the plan must be made by the owner of the principal unit to be subdivided and be—

• (a) in the prescribed form (if any); and

• (b) accompanied by a copy of the resolution required by section 16(3).

(3) Despite section 195, in relation to an application under subsection (2), the certificate required by section 195 must be lodged with the Registrar by the person making the application to deposit the plan.

(1) The deposit of a unit plan for a subsidiary unit title development creates in each unit a stratum estate in freehold or a stratum estate in leasehold or licence, as the case may be, derived from the stratum estate in the principal unit subdivided to create the subsidiary unit title development.

(1A) The stratum estate in each unit comprises—

• (a) the fee simple estate or, as the case may be, the estate as lessee or licensee in the unit determinable in accordance with section 61 or subpart 2 of Part 4; and

• (b) the beneficial interest in the fee simple estate or, as the case may be, the estate as lessee or licensee in the common property of the subsidiary unit title development, to which the owner of the unit is entitled under section 44(2); and

• (c) the undivided share in the fee simple estate or, as the case may be, the estate as lessee or licensee in the principal unit subdivided to create the subsidiary unit title development, to which the owner of the unit is contingently entitled under subpart 2 of Part 4.

(2) The principal unit subdivided to create the subsidiary unit title development remains a principal unit in its unit title development.

(1) A subdivision of a parcel of land under subpart 1 or a subdivision of a principal unit under subpart 2 may be done in stages in accordance with this subpart.

(2) Except as provided in this subpart or in any other provision of this Act, all of the provisions of this Act apply to a unit title development created in stages.

(1) If land or a principal unit is to be subdivided in stages, this section and section 22A apply instead of sections 9(1) and 17(1)(b).

(2) Subdivision in stages is effected by the successive deposit under the Land Transfer Act 1952 of—

• (a) a proposed unit development plan and a first stage unit plan together; and

• (b) 1 or more further stage unit plans (if any); and

• (c) a complete unit plan.

(3) In the case of subdivision under section 9 of land, the applications to deposit the plans must be made by the registered proprietor described in section 8(1) in the prescribed form (if any).

(4) In the case of the subdivision of a principal unit to create a subsidiary unit title development, the applications to deposit the plans must be made by the owner of the principal unit to be subdivided in the prescribed form (if any).

(1) A proposed unit development plan required by section 22(2) must specify all the units and the whole of the common property proposed to comprise the unit title development when it is completed.

(2) A stage unit plan required by section 22(2) must specify—

• (a) each unit and each part of the common property (if any) that has so far been completed to the extent necessary for the purposes of section 27C(2)(a) at the date of the deposit of the plan; and

• (b) the balance as 1 or more future development units.

(3) A complete unit plan required by section 22(2) must specify all the units and the whole of the common property comprising the development in relation to a building or buildings (if any) already erected on the land.

(4) Every stage unit plan (except the first) and the complete unit plan relating to a development must be deposited in substitution for the stage unit plan previously deposited in respect of that development.

(5) Subsection (3)(b) applies despite section 27C(2)(a).

(6) No stage unit plan and no complete unit plan may be deposited unless the certificate given under section 27C(2)(a) includes a statement by the authorised officer of the territorial authority in whose district the land is situated that the plan is consistent with the relevant proposed unit development plan.

For the purposes of section 27F(b) and (c), it is sufficient if every building and every other part of the whole development shown on a stage unit plan complies with the territorial authority’s district plan requirements applied at the date on which approval of the proposed unit development plan under section 223 of the Resource Management Act 1991 was given, even if, because of subsequent changes to the requirements, any building or other part of the development no longer complies with all the requirements.

(1) The deposit of the first stage unit plan under section 22(2)(a) has the effect of creating in each future development unit a stratum estate in freehold or a stratum estate in leasehold or a licence licence (as the case may be).

(2) Those estates are made up of—

• (a) the fee simple estate or the estate as lessee or licensee (as the case may be) in the unit, which determines,—

  • (i) on the deposit of a unit plan that specifies as other than a future development unit, that part of the base land or principal unit (as the case may be) that formerly made up the future development unit; or

  • (ii) on the cancellation of a stage unit plan, in accordance with subpart 2 of Part 4, on which the unit is shown as a future development unit:

• (b) the undivided share in the fee simple estate or the estate as lessee or licensee (as the case may be) in all the units to which the owner of the unit is contingently entitled by virtue of subpart 2 of Part 4.

(1) Nothing in section 11 or Part 10 of the Resource Management Act 1991 applies to the deposit of a stage unit plan or a complete unit plan except for—

• (a) the requirement to obtain a certificate under section 224(c) of that Act (as modified by section 27 of this Act) unless a certificate under section 224(c) has already been obtained for the proposed unit development plan; and

• (b) the requirement to comply with section 224(e) of that Act.

(2) Section 11 and Part 10 of the Resource Management Act 1991 apply to the deposit of a proposed unit development plan except for the requirement to obtain a certificate under section 224(c) of that Act if a certificate will be obtained for each stage unit plan and the complete unit plan in accordance with subsection (1).

(3) For the avoidance of doubt, the certificate required to be obtained under section 224(c) of the Resource Management Act 1991 may be provided for either—

• (a) the proposed unit development plan; or

• (b) each stage unit plan and the complete unit plan.

(4) The reference in section 224(c) of the Resource Management Act 1991 to a survey plan is, in respect of a staged unit plan or a complete unit plan, a reference to the proposed unit development plan to which the staged unit plan or complete unit plan relates.

(1) Unless a condition of the subdivision consent for a stage unit plan or a complete unit plan requires otherwise, a certificate issued by a territorial authority under section 224(c) of the Resource Management Act 1991 for a stage unit plan or a complete unit plan may certify that—

• (a) the conditions specified in the subdivision consent that are relevant to that stage of the subdivision consent have been complied with to the satisfaction of the territorial authority; or

• (b) in respect of conditions that have not been complied with,—

  • (i) the conditions specified in the subdivision consent are not relevant to that stage and therefore do not need to be complied with; or

  • (ii) if the conditions specified in the subdivision consent that are relevant to that stage of the subdivision consent have not been complied with, the provisions of section 224(c)(i), (ii), and (iii) of the Resource Management Act 1991 continue to apply.

(2) If subsection (1)(b)(ii) applies, a territorial authority may issue a certificate under section 224(c) of the Resource Management Act 1991.

(3) Before issuing the certificate, the territorial authority must be satisfied that, in respect of any conditions not complied with, those conditions will be satisfied before or on certification of a later stage unit plan or complete unit plan, as the case may be, for the relevant subdivision consent.

(1) Once a proposed unit development plan has been deposited it must not be altered except as provided in this section.

(1) This section applies to any alteration to a proposed unit development plan other than one—

• (a) required under section 46 or 47A; or

• (b) required in relation to a redevelopment under any of sections 55 to 58.

(2) The body corporate may, by special resolution, agree to make an application to deposit a substituted proposed unit development plan.

(3) The body corporate must apply to the Registrar for the deposit of a new proposed unit development plan in substitution for the existing unit plan existing proposed unit development plan.

(4) Sections 192 to 195 (which provide for an objection process) apply to a resolution under this section.

(5) Before making the application to deposit the new plan, the body corporate must (in addition to complying with section 193(1))—

• (a) serve a copy of the draft application on—

  • (i) every unit owner; and

  • (ii) every other person who has a registered interest in any unit or a caveat or notice of claim entered on the register over any unit; and

• (b) if the existing unit plan relates to a stratum estate in leasehold or licence, obtain the written consent of the lessor or licensor to the redevelopment.

(6) The new proposed unit development plan must—

• (a) specify all the units and the whole of the common property proposed to comprise the unit title development; and

• (b) in addition, show, to the satisfaction of the Registrar, the modifications to the unit plan being replaced.

(7) Sections 27C(1)(d), (2)(b) and (c), and (3)(a) , as the case may require, and section 27E apply in respect of a substituted proposed unit development plan.

(7) In addition to the provisions referred to in section 27B(2)(a), sections 27C(2)(a) and (b), and 27F to 27H apply in respect of a substituted proposed unit development plan.

(8) In addition to the matters required to be included in the certificate referred to in section 195, the body corporate must also certify that any consent under subsection (5)(b) has been given.

(9) The new plan must be deposited in accordance with section 39.

(1) The whole of this subpart applies to a unit plan to be deposited under any of sections 9, 17, or 22 or subpart 3 of Part 4.

(2) In relation to any unit plan other than one referred to in subsection (1),—

• (a) sections 27C(2) 27C(2)(c), 27D(3), and 27E apply; and

• (b) provisions of this subpart other than those referred to in paragraph (a) apply if expressly provided elsewhere in this Part.

(1) A unit plan for the subdivision of land must not be deposited—

• (a) while the computer register to any land to which it relates is limited in any manner referred to in Part 12 of the Land Transfer Act 1952:

• (b) while the land to which it relates is held in more than 1 computer register created under the Land Transfer Act 1952:

• (c) unless the land to which it relates is the whole of the land in a computer register created under the Land Transfer Act 1952:

• (d) unless the grantor of the lease or licence, if the land is held under a lease or licence, the registered owner of any mortgage, encumbrance, or charge affecting the land or any part of it, and every caveator whose caveat against the land was lodged with the Registrar before deposit of the plan, have consented in writing to its being deposited.

(2) A unit plan for the subdivision of land or for the subdivision of a principal unit must not be deposited—

• (a) unless a certificate in the prescribed form has been given in writing by an authorised officer of the territorial authority in whose district the land is situated to the effect that—

  • (i) every building (if any) shown on the plan has been erected, and all other development work has been carried out, to the extent necessary to enable all the boundaries of every unit and the common property shown on the plan to be physically measured; and

  • (ii) every principal unit shown on the plan conforms to the definition of principal unit in section 5B:

• (b) unless a certificate in the prescribed form has been given in writing by a registered valuer showing the ownership interest or proposed ownership interest fixed under section 28 for each of the units on the plan:

• (c) until it has been approved in accordance with section 9 of the Cadastral Survey Act 2002.

(3) In addition to the restrictions in subsection (2), a unit plan for the subdivision of a principal unit must not be deposited—

• (a) unless the registered owner of any mortgage, encumbrance, or charge affecting the principal unit and every caveator whose caveat against the principal unit was lodged with the Registrar before deposit of the plan, have consented in writing to its being deposited:

• (b) unless a certificate in the prescribed form has been given in writing by a registered valuer assessing the ownership interest of the principal unit being subdivided to create the subsidiary unit title development.

(1) Section 27C(1)(b) and (c) do not prevent the deposit of a plan in any case where 1 computer register may properly be created for the land to which the plan relates.

(2) A consent for the purposes of section 27C(1)(d) or (3)(a) may be given by an agent duly authorised in writing by the grantor, owner, or caveator.

(3) Approval in accordance with section 27C(2)(c) has effect to make the plan the property of the Crown.

A unit plan must comply with the provisions of rules made under section 49 of the Cadastral Survey Act 2002.

An authorised officer of a territorial authority must not refuse to give a certificate in respect of any unit plan under section 27C(2)(a) except on 1 or more of the following grounds:

• (a) that any building shown on the plan has not been erected, or that any other development work has not been carried out, to the extent necessary to enable all the boundaries of every unit and the common property shown on the plan to be physically measured:

• (b) that any building on the land has been erected in such a place in relation to any boundary, or to a height, so as to contravene the requirements of the territorial authority's district plan unless the contravention is authorised by the territorial authority:

• (c) that any building or any other part of the whole development contravenes the requirements of the territorial authority's district plan in any other manner to such an extent that alterations are required that may affect the location or the boundaries of any unit or of any part of the common property shown on the plan unless the contravention is authorised by the territorial authority.

(1) This section applies if—

• (a) an authorised officer of a territorial authority has given a certificate in respect of any unit plan under section 27C(2)(a); and

• (b) that plan has been deposited.

(2) The territorial authority has no power to require any alteration to any building or any other part of the whole development that may affect the location or the boundaries of any unit or of any part of the common property shown on the plan.

(3) The territorial authority may otherwise pursue any remedies it may have (including the prosecution of any person) in respect of any non-compliance with the provision of its district plan or the requirements of the Resource Management Act 1991.

(4) Subsection (2) applies despite any enactment or rule of law to the contrary.

No territorial authority, authorised officer of a territorial authority, member of a territorial authority, or employee or agent of a territorial authority, is subject to civil or criminal liability in respect of the giving of a certificate under section 27C(2)(a), unless the territorial authority or person has acted in bad faith.

(1) Before a unit plan is deposited under section 9(1), 17(1), or 22(2)(a),—

• (a) every principal unit and every accessory unit must be assigned an ownership interest; and

• (b) every proposed principal unit and every proposed accessory unit must be assigned a proposed ownership interest.

(2) The ownership interest or proposed ownership interest is fixed as follows:

• (a) in the case of a unit plan deposited under section 9(1) or 17(1), the ownership interest is that fixed by a registered valuer on the basis of the relative value of the unit in relation to each of the other units and shown on any documentation required to be lodged with the unit plan:

• (b) in the case of a stage unit plan or complete unit plan deposited under section 22(2), the ownership interest is that fixed by a registered valuer on the basis of the relative value of the unit in relation to each of the other units and shown on any documentation required to be lodged with the proposed unit development plan.

(3) The ownership interest is used to determine a range of matters, including, but not limited to,—

• (a) the beneficial interest of the owner of the principal unit in the common property:

• (b) the share of the owner of the principal unit in the value of any buildings, fixtures, and other improvements in relation to leasehold land:

• (c) the voting rights of the owner of the principal unit when a poll is requested under section 86:

• (d) the share of the owner of the principal unit in the underlying fee simple in the land on the cancellation of the unit plan:

• (e) the extent of the obligation of the owner of the principal unit in respect of contributions levied by the body corporate under section 106 in respect of any capital improvement fund:

• (f) the rights of the owner of the principal unit in relation to a distribution of any surplus money of a capital improvement fund under section 115:

• (g) the extent of the obligation of the owner of the principal unit for payment of ground rental under section 74:

• (h) the extent of the liability of the owner of the principal unit for damages and costs under section 126.

(4) The proposed ownership interest for a future development unit is the total of all the proposed ownership interests of the proposed principal units and proposed accessory unit units in the future development unit assigned under subsection (1)(b).

(4A) The proposed ownership interest is used to determine the same range of matters described in subsection (3) in so far as they apply to an owner of a future development unit.

(5) Subject to sections 31 and 57(3) 57(2), no change may be made in the ownership interest of any unit after the unit plan is deposited.

(1) Before a unit plan is deposited under section 9(1), 17(1), or 22(2)(a), every principal unit and every accessory unit must be assigned a utility interest.

(2) The utility interest is the same as the ownership interest fixed under section 28(2) unless otherwise shown on any documentation required to be lodged with the unit plan deposited under section 9(1), 17(1), or 22(2)(a) or reassessed under section 31.

(3) The utility interest is used to determine a range of matters including, but not limited to,—

• (a) the extent of the obligation of the owner of the principal unit in respect of contributions levied by the body corporate under section 106 in respect of the long-term maintenance fund, the optional contingency fund, and the operating account:

• (b) the rights of the owner of the principal unit in relation to a distribution of any surplus money in the long-term maintenance fund, the optional contingency fund, or the operating account, or personal property of the body corporate under section 115.

(1) As soon as a future development unit is in use as a place of residence or business or otherwise it must be assigned a deemed utility interest.

(2) The deemed utility interest is—

• (a) the total of all the proposed ownership interests of the proposed principal units and proposed accessory units in the future development unit assigned under section 28; or

• (b) an amount fixed by the body corporate by special resolution at a general meeting under section 31.

(3) The deemed utility interest is used to determine the extent of the future development unit’s owner’s obligations in respect of contributions relating to the funds levied by the body corporate under section 106.

(1) The ownership interest or utility interest may be reassessed for each unit if the body corporate decides by special resolution at a general meeting to reassess the ownership interest or the utility interest, or both.

(2) If a unit plan is deposited for the subdivision of a unit to create a subsidiary unit title development, the ownership interest and utility interest for the principal unit that has been subdivided must be reassessed by the body corporate.

(3) A decision by the body corporate to reassess the ownership interest or the utility interest under subsection (1) may only be made if 36 months or more have elapsed since the deposit of the plan or the last reassessment of the ownership interest or the utility interest, as the case may be under subsection (1).

(4) A reassessment under subsection (1) takes effect on the earlier of—

• (a) the date determined as part of the special resolution under subsection (1); or

• (b) the date of reassessment.

(5) Any reassessment of—

• (a) the ownership interest of a unit must be made by a registered valuer on the basis of the relative value of each of the units to each other:

• (b) the utility interest may be made by the body corporate on a fair and equitable basis, having regard to the relevant benefits and the costs to units.

(5A) If, as a result of a reassessment, a utility interest is to be assigned other than on the basis of the relative value of the unit in relation to each other unit, the body corporate must, by special resolution, approve the method of apportionment of the utility interest.

(5B) Sections 192 to 195 (which provide for an objection process) apply to a resolution made in accordance with subsection (5A).

(6) Any costs incurred in the reassessment must be paid for by the body corporate.

(7) In this section and section 32,—

• (a) a reference to ownership interest includes any proposed ownership interest (of a future development unit); and

• (b) a reference to utility interest includes any deemed utility interest of a future development unit.

(1) The body corporate must notify the Registrar in the prescribed form (if any) of any reassessment of the ownership interest or the utility interest under section 31.

(2) The Registrar must record any reassessment of the ownership interest or the utility interest.

(1) On the deposit of a unit plan for the subdivision of land, the Registrar must—

• (a) create a computer register in the name of the registered proprietor (and not the body corporate) of the base land, for the stratum estate in all of the units shown on the unit plan; and

• (b) cancel the existing computer register (if any) for the base land; and

• (c) in a case where the unit plan relates to an estate as lessee or licensee under a registered lease or licence of any land, note an appropriate memorial on the computer register for the leasehold or licence estate.

(2) Despite subsection (1)(a), the Registrar must, at the request of the registered proprietor, create a separate computer register for any principal unit or future development unit.

(3) A computer register created under subsection (2) may also include 1 or more accessory units.

(1) On the deposit of a unit plan for the subdivision of a principal unit, the Registrar must—

• (a) create a computer register in the name of the owner of the principal unit that has been subdivided for the stratum estate in all of the units in the subsidiary unit title development; and

• (b) cancel the existing computer register (if any) for the principal unit.

(2) Despite subsection (1)(a), the Registrar must, at the request of the owner of the principal unit that has been subdivided, create a separate computer register for any principal unit in the subsidiary unit title development.

(3) A computer register created under subsection (2) may include 1 or more accessory units.

Despite section 95 of the Land Transfer Act 1952, no separate computer register may be created under that Act for—

• (a) the fee simple estate or, as the case may be, the interest as lessee or licensee in the base land or any part of the base land; or

• (b) the stratum estate in a principal unit that has been subdivided to create a subsidiary unit title development; or

• (c) any component part of a stratum estate as described in sections 14 and 19(1A).

No computer register may be created in respect of common property.

On the deposit of a unit plan under subpart 1 or 2, or section 22(2)(a), the Registrar must set up a supplementary record sheet on which the Registrar must note—

• (a) that the body corporate owns the common property; and

• (b) that the owners of all the units are beneficially entitled to the common property as tenants in common in shares proportional to the ownership interest (or proposed ownership interest) in respect of their respective units; and

• (c) appropriate memorials relating to—

  • (i) all instruments that are registered and that affect the whole or any part of the base land and the common property (independently of the units) to which the unit plan relates; and

  • (ii) all other matters that, in accordance with this Act, the regulations, and any other Act, have to be noted on the supplementary record sheet.

On the deposit of a unit plan for the subdivision of a principal unit under subpart 2 or section 22(2)(a), the Registrar must—

• (a) note the subsidiary unit title development on the supplementary record sheet for each unit title development in the layered unit title development of which it is a part; and

• (b) note on the relevant supplementary record sheet the ownership interest of the principal unit that was subdivided to create the subsidiary unit title development, reassessed as required by section 27C(3)(b).

In any case where, under any of the provisions of section 27A, 46, 47A, or 56, a new unit plan is deposited under the Land Transfer Act 1952,—

• (a) the plan deposited must be noted so as to show clearly that it is in substitution for the earlier plan:

• (b) where any unit is described in any computer register or in any other instrument in respect of any land, the reference must be read as a reference to the plan for the time being deposited in respect of that land.

On the creation of a stratum estate in a unit,—

• (a) that stratum estate may devolve or be transferred, leased, mortgaged, or settled:

• (b) except as provided in this or any other Act, the component parts of the stratum estate are not capable of devolving or being dealt with independently of the others:

• (c) the fee simple estate or, as the case may be, the interest as lessee or licensee in the base land, or any part of the base land, is not capable of devolving or being dealt with except as provided in this or any other Act.

On the creation of a stratum estate in a unit in a subsidiary unit title development, the principal unit that was subdivided to create the development is not capable of devolving or being dealt with except as provided in this or any other Act.

A transfer, lease, mortgage, or settlement of a stratum estate in a unit has the same effect as if the stratum estate were an estate in fee simple in land or an interest in land under a lease or licence, as the case may be.

(1) Except where it is transferred to the owner of a principal unit shown on the same unit plan, no accessory unit or any interest in it may be sold, leased, mortgaged, or otherwise disposed of or dealt with except as part of a sale, lease, mortgage, disposition, or other dealing that includes a principal unit or a corresponding interest in a principal unit.

(2) No computer register relating to an accessory unit may be created except as part of a computer register relating to a principal unit.

(3) No principal unit that is for the time being included in the same computer register as an accessory unit (not being a computer register created under section 183(1)(b)) and no interest in that principal unit may be sold, leased, mortgaged, or otherwise disposed of or dealt with except—

• (a) as part of a sale, lease, mortgage, disposition, or dealing that includes the accessory unit or a corresponding interest in the accessory unit, as the case may be; or

• (b) if there is a concurrent sale of the accessory unit in accordance with subsection (1).

(4) If an accessory unit is being transferred independently of a principal unit to a person who is the owner of a principal unit shown on the same unit plan, the instrument of transfer in respect of the accessory unit must contain a request to the Registrar for the accessory unit to be included in the computer register for the principal unit.

(5) On the registration of the instrument of transfer referred to in subsection (4), the accessory unit becomes subject to all mortgages and charges and other registered interests or caveats or notices of claim to which the principal unit is subject.

(6) If an accessory unit is for the time being included in the same computer register as a principal unit, the accessory unit must not be transferred apart from the principal unit while it remains subject to any mortgage, charge, or other registered interest other registered interest or caveat or notice of claim entered on the register.

(7) Despite anything to the contrary in the Land Transfer Act 1952, any purported sale, lease, mortgage, disposition, or dealing with any unit in contravention of subsection (1) or (3) is void.

(8) Nothing in subsection (7) affects the devolution of any unit on the death of the owner of the unit to the administrator of that owner.

(1) The common property is owned by the body corporate.

(2) The owners of all the units are beneficially entitled to the common property as tenants in common in shares proportional to the ownership interest (or proposed ownership interest) in respect of their respective units.

(3) Nothing in subsection (2) affects the interests among themselves of the owners of an individual unit.

(1) This section applies if—

• (a) the base land to which a unit plan relates has an access lot to or from it; and

• (b) the whole or a share of the access lot is owned by the person who is, immediately before the unit plan is deposited, the registered proprietor of the base land.

(2) On the deposit of the unit plan, the access lot, or share of the access lot, owned by the registered proprietor of the base land becomes part of the common property.

(1) The body corporate may, after a special resolution to do so, grant a lease or licence over part of the common property.

(2) Before granting a lease or licence over part of the common property, a subsidiary body corporate must obtain the consent to the dealing by special resolution from—

• (a) the body corporate for its parent unit title development; and

• (b) the body corporate for any unit title development located between the subsidiary unit title development and its head unit title development; and

• (c) the body corporate for its head unit title development.

(3) A body corporate, other than a subsidiary body corporate, may, after a special resolution to do so, sell part of the common property.

(4) Sections 192 to 195 (which provide for an objection process) apply to a resolution under this section.

(5) In addition to the matters required to be included in the certificate referred to in section 195, the body corporate must also certify that the consents required under subsection (2) have been given.

(6) Unless the body corporate resolves otherwise, any proceeds obtained by the body corporate as a result of any sale, lease, or licence of or over the common property must be distributed to the unit owners.

(6A) Proceeds distributed to the unit owners under subsection (6) must be distributed in shares proportional to what was, at the time of the sale, lease, or licence, their ownership interest (including any proposed ownership interest).

(7) Without limiting subsection (6), the body corporate may, with the consent of the owner of a principal unit, offset the payment to that owner against current or future levies payable in respect of that owner’s principal unit.

(8) For the purposes of any sale of common property, the owner of a future development unit that is in use as a place of residence or business or otherwise, in whole or in part, is to be treated as a member of the body corporate.

(1) The instrument of transfer of the whole or any part or parts of the common property must, when lodged for registration, be accompanied by a new unit plan in substitution for the existing unit plan.

(2) The requirements of subsection (1) are in addition to any plan that the Registrar may require to be deposited under section 167 of the Land Transfer Act 1952.

(2A) If a unit plan referred to in this section includes a stage unit plan,—

• (a) the reference to the unit plan includes both the stage unit plan and proposed unit development plan; and

• (b) both plans must be prepared, approved, and deposited in accordance with this section.

(3) The new unit plan must show the effect of the transfer to the satisfaction of the Registrar.

(4) The Registrar must register any transfer to which subsection (1) refers by—

• (a) noting a memorial of the transfer on the supplementary record sheet and any other appropriate record; and

• (b) creating in the name of the transferee a computer register for the land transferred free from any incidental rights existing over the land under section 60.

(5) Nothing in this section restricts section 37.

(1) An interest in land outside the base land may be transferred to the body corporate (other than a subsidiary body corporate) and included in the common property if—

• (a) the body corporate has by special resolution resolved to acquire the interest in land; and

• (b) the interest in land is transferred free from any registered mortgage, encumbrance, charge, lease, or sublease; and

• (c) either—

  • (i) in a case where a stratum estate in freehold exists in the units shown on the plan, the transfer is of an estate in fee simple in the land to which it relates; or

  • (ii) in a case where a stratum estate in leasehold or licence exists in the units shown on the plan, the transfer is of an estate as lessee or licensee in the land to which it relates under a lease or licence from the grantor of the lease or licence of the base land.

(2) The lease or licence referred to in subsection (1)(c)(ii) must be a lease or licence for the same remaining period, on the same terms and conditions, and containing the same provisions as the current lease or licence of the base land.

(3) Sections 192 to 195 (which provide for an objection process) apply to a resolution under this section.

(4) For the purpose of this section, the owner of a future development unit that is in use as a place of residence or business or otherwise, in whole or in part, is to be treated as a member of the body corporate.

(1) Every instrument of transfer to which section 47 relates must, when lodged for registration, be accompanied by a new unit plan in substitution for the existing unit plan.

(1A) If a unit plan referred to in this section includes a stage unit plan,—

• (a) the reference to the unit plan includes both the stage unit plan and proposed unit development plan; and

• (b) both plans must be prepared, approved, and deposited in accordance with this section.

(2) The new unit plan must show the effect of the transfer to the satisfaction of the Registrar.

(3) The registration of a transfer under this section has the effect of including the transferred land as part of the common property.

(4) The Registrar must register any transfer to which subsection (1) refers by—

• (a) entering a memorial of the transfer on the relevant computer register; and

• (b) noting a memorial of the transfer on the supplementary record sheet.

(4A) The beneficial interest (under section 44(2)) in the land included as part of the common property pursuant to the transfer is deemed to be held by each unit owner—

• (a) subject to the same terms, conditions, liabilities, and interests as those on or subject to which the owner held the unit immediately before the registration of the transfer; and

• (b) subject to any instrument of mortgage, encumbrance, charge, lease, or sublease affecting the owner's unit as if the beneficial interest in the transferred land had been included in the instrument expressly.

(5) Nothing in this section restricts section 37.

(1) The deposit of a unit plan has no effect on any easement or covenant to which the base land is subject or on any easement or covenant that is appurtenant to the base land.

(2) Despite section 67 of the Land Transfer Act 1952, the Registrar must require any easements and covenants referred to in subsection (1) to be recorded (by diagram, words, or otherwise) on the supplementary record sheet, and must not note them on any computer register created under section 33.

(3) If there is a layered unit title development on the base land, the supplementary record sheet referred to in subsection (2) is that for the head unit title development and any subsidiary unit title development affected by the easement.

(1) The body corporate of a standard unit title development or the body corporate of a head unit title development may, after a special resolution to do so, vary, surrender, or assign any easement or vary or revoke any covenant to which section 48 applies.

(2) For the purpose of sections 90 to 90F of the Land Transfer Act 1952, if the body corporate enters into an instrument described in subsection (1), the body corporate must be treated as the registered proprietor of the base land.

(1) The body corporate may, after a special resolution to do so, over the whole or any part of the common property,—

• (a) grant an easement in gross or for the benefit of any unit or any other land; or

• (b) enter into a covenant for the benefit of any unit or any other land.

(2) The body corporate may, after a special resolution to do so, over any unit or any land that is not common property,—

• (a) acquire an easement for the benefit of the common property; or

• (b) enter into a covenant for the benefit of common property.

(3) The body corporate may, after a special resolution to do so, enter into a variation or surrender of—

• (a) an easement or covenant over any unit or any land that is not common property for the benefit of the common property; or

• (b) an easement or covenant over the common property for the benefit of any unit or any other land.

(4) Before dealing with common property under subsection (1), (2), or (3), a subsidiary body corporate must obtain the consent to the dealing by special resolution from—

• (a) the body corporate for its parent unit title development; and

• (b) the body corporate for any unit title development located between the subsidiary unit title development and its head unit title development; and

• (c) the body corporate for its head unit title development.

(5) Sections 192 to 195 (which provide for an objection process) apply to a resolution under this section.

(6) In addition to the matters required to be included in the certificate referred to in section 195, the certificate must also certify that the consents required under subsection (4) have been given.

(7) Unless the body corporate resolves otherwise, any proceeds obtained by the body corporate as a result of any dealing with common property under subsections (1), (2), and (3) must be distributed to the unit owners.

(8) Proceeds distributed to the unit owners under subsection (7) must be distributed in shares proportional to what was, at the time of the dealing, their ownership interest (including any proposed ownership interest).

(1) The owner of a unit may, for the benefit of the unit,—

• (a) acquire an easement over other land; or

• (b) acquire the benefit of a covenant over other land.

(2) The owner of a unit may, for the benefit of other land,—

• (a) grant an easement over the unit; or

• (b) enter into a covenant over the unit.

(2A) The owner of a unit may enter into a variation or surrender of—

• (a) an easement or covenant over other land for the benefit of the unit; or

• (b) an easement or covenant over the unit for the benefit of other land.

(2B) Before any dealing with the unit under subsection (1), (2), or (2A), the body corporate must, by special resolution, have consented to the granting, acquiring, variation, or surrender of the easement or covenant.

(3) Before giving its consent in accordance with subsection (2B), a subsidiary body corporate must obtain the consent by special resolution, and in writing, to the granting, acquiring, variation, or surrender of the easement or covenant from—

• (a) the body corporate for its parent unit title development; and

• (b) the body corporate for any unit title development located between the subsidiary unit title development and its head unit title development; and

• (c) the body corporate for its head unit title development.

(4) An application to register an instrument to give effect to any of the matters in subsections (1), (2), or (2A) must be accompanied by a certificate by the body corporate that the consent required under subsection (2B) has been given.

(5) The certificate referred to in subsection (4) may be relied on by the Registrar as sufficient evidence of compliance with the matters set out in the certificate.

If a unit plan referred to in sections 55 to 58 includes a stage unit plan,—

• (a) the reference to the unit plan includes both the stage unit plan and proposed unit development plan; and

• (b) both plans, or amendments to both plans, as the case may be, must be prepared, approved, and deposited in accordance with the applicable provisions of sections 55 to 58.

(1) This section applies if the boundary between 1 or more units shown on a unit plan is adjusted but the adjustment does not materially affect—

• (a) the common property; or

• (b) the use, enjoyment, or ownership interest of any unit the boundary of which is not being adjusted.

(1) This section applies if a redevelopment consists solely of the adjustment of the boundary between 1 or more units shown on a unit plan but the adjustment does not materially affect—

• (a) the common property; or

• (b) the use, enjoyment, or ownership interest of any unit the boundary of which is not being adjusted.

(2) The owners of the units that will have their boundaries adjusted must, jointly, make an application to the Registrar for the deposit of an amendment to the unit plan.

(2A) Sections 27C(2)(a) and (c), 27D(3), and 27E to 27H apply in respect of the deposit of the amendment to the unit plan under subsection (2).

(3) Before making the application to deposit the amendment to the unit plan the unit owners in subsection (2) must obtain a certificate from the body corporate that the redevelopment is of a kind described in subsection (1).

(4) The unit owners in subsection (2) must, for the purposes of obtaining the certificate referred to in subsection (3), provide sufficient written information to the body corporate to fully inform it of the nature of the redevelopment.

The amendment to the unit plan required by section 55 must—

• (a) define the boundaries of the enlarged or reduced units; and

• (b) show any enlarged or reduced unit marked with numbers or letters not already used on the unit plan; and

• (c) specify which of the enlarged units and reduced units are principal units and which are accessory units; and

• (d) comply with the provisions of rules made under section 49 of the Cadastral Survey Act 2002.

(1) The application to deposit the amendment to the unit plan required by section 55 must be in the prescribed form (if any) and be accompanied by—

• (a) the certificate described in section 55(3); and

• (b) a certificate from a registered valuer—

  • (i) determining the ownership interest of any enlarged or reduced unit; and

  • (ii) stating that the amendment to the unit plan does not affect the ownership interest of any unit the boundary of which is not being adjusted.

(2) The certificate referred to in subsection (1)(a) may be relied on by the Registrar as sufficient evidence of the matters set out in it.

(3) On the deposit of the amendment to the unit plan and the registration of any transfers or other instruments, the Registrar must—

• (a) cancel the existing computer registers for the units affected by the amended boundaries; and

• (b) create separate computer registers in accordance with the amendment to the unit plan for the units affected by the amended boundaries; and

• (c) enter a reference to the amended unit plan on the supplementary record sheet.

(1) This section applies to any redevelopment other than one to which section 55 applies.

(2) The body corporate must apply to the Registrar for the deposit of a new unit plan in substitution for the existing unit plan.

(3) Before making the application to deposit the new unit plan, the body corporate must—

• (a) ensure that all of the owners of the units materially affected by the redevelopment have consented in writing to the new unit plan; and

• (ab) if the existing unit plan relates to a stratum estate in leasehold or licence, obtain the written consent of the lessor or licensor to the redevelopment; and

• (b) agree, by special resolution, to the new unit plan.

(4) For the purpose of this section, an owner of a future development unit that is in use as a place of residence or business or otherwise, in whole or in part, as a principal unit is to be treated as a member of the body corporate.

(5) Sections 192 to 195 (which provide for an objection process) apply to a resolution under this section.

(1) A new unit plan required under section 56 must specify the units and common property making up the unit title development and must, in addition,—

• (a) define the boundaries of the new units or the enlarged or reduced units:

• (b) show all new units and any enlarged or reduced units marked with numbers or letters not already used on the existing unit plan:

• (c) specify which of the new units, enlarged units, and reduced units are principal units and which are accessory units.

(1A) Section 27C(1)(d), (2)(a), (2)(c), and (3)(a), as the case may require, and sections 27D to 27H apply in respect of the new plan.

(1A) In addition to the provisions referred to in section 27B(2)(a), sections 27C(2)(a) and 27F to 27H apply in respect of a new plan.

(2) The application to deposit the plan must be accompanied by a certificate from a registered valuer—

• (a) in the case of a subdivision into 2 or more new units, enlarged units, or reduced units, showing the ownership interest of the former unit or units included in the redevelopment apportioned among the new units; and

• (b) in the case where a redevelopment involves the inclusion in a unit of part of the common property, the transfer into the common property of a unit or part of a unit, or the erection of 1 or more units on the common property, reassessing the ownership interests of all units in the unit title development.

(4) The valuer who reassesses the ownership interest under subsection (2)(b) must assign to every unit a new ownership interest on the basis of the relative value of the unit in relation to each other unit at the date on which the reassessment is made.

(6) Despite subsection (4), the registered valuer may, in his or her discretion, reassess the ownership interests at the same values as the current ownership interests in any case where the valuer considers that the redevelopment is of a relatively minor nature.

(7) In addition to the matters required to be included in the certificate referred to in section 195, the body corporate must also certify that the consents required under section 56(3)(a) and (ab) have been given.

(1) This section applies if, immediately before a redevelopment to which sections 56 and 57 relate, the utility interest of any unit was different to its ownership interest because the utility interest had been reassessed under section 31.

(2) The body corporate must—

• (a) reassess the utility interest of the unit in accordance with the requirements of section 31; and

• (b) notify the Registrar under section 32.

(1) The new unit plan required under section 56 must be deposited in accordance with section 39.

(2) On the deposit of the new unit plan and the registration of any necessary transfers or other instruments, the Registrar must—

• (a) cancel the existing computer registers to the units affected by the redevelopment; and

• (b) create separate computer registers in accordance with the new unit plan for the units affected by the redevelopment.

Except as otherwise provided in this Act and subject to any necessary modifications, the provisions of the Land Transfer Act 1952 apply to every stratum estate in freehold and stratum estate in leasehold or licence and to every dealing with any instrument affecting any such estate.

(1) The common property and each unit on a unit plan has appurtenant to it the following rights to the base land over the base land to the extent necessary for the reasonable use and enjoyment of the common property or unit:

• (a) rights of support, shelter, and protection; and

• (b) rights for the passage or provision of water, sewerage, drainage, gas, electricity, oil, garbage, air, all telecommunications and electronic services, and all other services of any nature.

(2) The common property and each unit on a unit plan has appurtenant to it the following rights over the base land:

• (a) a right to the full, free, and uninterrupted access and use of light to or for any windows, doors, or other apertures existing at the date of deposit of the plan and enjoyed at that date; and

• (b) a right to maintain overhanging eaves existing at the date of deposit of the plan.

(3) The rights created by this section carry with them all ancillary rights and responsibilities necessary to make them effective as if they were easements.

(4) Nothing in this section affects any land other than the base land.

(1) This section applies if any building or other improvement comprised in any unit or on the base land is damaged or destroyed, but the unit plan is not cancelled.

(2) The High Court may, by order, settle a scheme on the application of—

• (a) the body corporate; or

• (b) if the unit title development is in a layered unit title development, the body corporate of the head unit title development or any subsidiary unit title development in that layered unit title development; or

• (c) an administrator; or

• (d) the owner or one of the owners of a unit; or

• (e) a registered mortgagee of a unit.

(3) A scheme under subsection (2) may include provisions—

• (a) for the reinstatement in whole or in part of the building or other improvement; or

• (b) for the transfer of units to the body corporate so as to form part of the common property.

(4) If an order is made under subsection (3)(b), section 47(3) to (10) sections 47(1)(c) and 47A applies apply to the transfer, so far as applicable, but subject to any order of the High Court to the contrary.

(5) A notice of any application made under subsection (2) must be lodged with the Registrar who must enter on the supplementary record sheet a notification that the application has been made.

(6) On any application to the High Court under subsection (2), the following persons have the right to appear and be heard:

• (a) any person having or claiming to have any estate or interest in any unit or in the whole or part of the base land; or

• (b) any insurer who has effected insurance on the buildings or other improvements comprised in any unit or in the whole or part of the base land.

(7) In the exercise of its powers under subsections (2) and (3), the High Court may make any orders that it considers expedient or necessary for giving effect to the scheme, including orders—

• (a) directing the application of any insurance money; or

• (b) directing payment of money by or to the body corporate or by or to any person; or

• (c) directing the deposit of an appropriate new unit plan; or

• (d) imposing any terms and conditions that it thinks fit.

(8) The High Court may cancel, vary, modify, or discharge any order made by it under this section.

(9) The High Court may make any order for payment of costs that it thinks fit.

(1) When a unit plan is deposited under section 9 (and in the case of a staged development, when the first stage unit plan is deposited under section 22), a body corporate is created and is the body corporate for the unit title development created by the deposit of that unit plan.

(2) When a unit plan is deposited under section 17 (and in the case of a staged development, when the first stage unit plan is deposited under section 22), a subsidiary body corporate is created and is the body corporate for the subsidiary unit title development created by the deposit of that unit plan.

(3) The name of the body corporate for a unit plan is the words “Body Corporate Number” and the registered number of the unit plan.

(1) The members of a body corporate for a unit plan are the unit owners of all the units in the unit plan.

(2) Despite subsection (1), and except as provided in sections 45, 47, 56, 91(6), 106(4), 108, 154, and 173, the owner for the time being of a stratum estate in a future development unit is not a member of the relevant body corporate created by section 62.

(1) A body corporate may do anything authorised by this Act or any other Act.

(2) A body corporate may do anything a natural person of full age and capacity may do except as provided for in this Act or any other Act.

A body corporate may do an act under section 64 only for the purpose of performing its duties or exercising its powers.

An owner of a principal unit—

• (a) has all the rights derived from being registered as the owner of the stratum estate in a unit under this Act:

• (b) holds a share in the common property in accordance with section 44(2):

• (c) is entitled as a body corporate member to exercise a vote in respect of his or her unit, subject to section 83 and any other requirements in the regulations:

• (d) is entitled to have quiet enjoyment of his or her unit without interruption by other unit owners or occupiers, or the body corporate or its agents, except as authorised by this Act or the regulations:

• (e) subject to section 68(1)(f) and (g), may make any alterations, additions, or improvements to his or her unit so long as these are within the unit boundary and do not materially affect any other unit or common property:

• (f) has the right to have any dispute resolved in the manner set out in subpart 1 of Part 4:

• (g) has the right to enforce the body corporate operational rules:

• (h) has the right to attend the general meetings of the body corporate.

(1) An owner of a principal unit—

• (a) must permit the body corporate (or its agents) to enter the unit at any time in an emergency and at all reasonable hours, and after giving reasonable notice, for any of the following purposes:

  • (i) to view the condition of the unit for the purpose of ascertaining compliance with the principal unit owners’ or occupiers’ obligations under this Act:

  • (ii) to maintain, repair, or renew any infrastructure for services and utilities that serve more than 1 unit and any building elements that affect more than 1 unit or the common property, or both:

  • (iii) to maintain, repair, or renew any common property:

  • (iv) to ensure the body corporate operational rules are being complied with:

• (ab) must do all things necessary to give effect to decisions of the body corporate:

• (ac) must consult with his or her mortgagee, if required to do so, before exercising a vote under section 84 or 85:

• (b) must comply with all laws and legal requirements relating to the use, occupation, or enjoyment of the unit:

• (c) must carry out, without delay, all work that may be ordered by a territorial authority or public body in respect of the unit to the satisfaction of that authority or body:

• (d) must pay all rates, taxes, charges, body corporate levies, and other outgoings that are from time to time payable in respect of the unit:

• (e) must repair and maintain the unit and keep it in good order to ensure that no damage or harm, whether physical, economic, or otherwise, is, or has the potential to be, caused to the common property, any building element, any infrastructure, or any other unit in the building:

• (f) must notify the body corporate of his or her intention to carry out any additions or structural alterations before the commencement of any work:

• (g) must not make any additions or structural alterations to the unit that materially affect any other unit or the common property without the written consent of the body corporate:

• (h) must comply with the body corporate operational rules:

• (i) must not do anything that breaches or in any way undermines any policy of insurance in the name of the body corporate.

(2) For the purpose of subsection (1), an owner of a future development unit that is in use as a place of residence or business or otherwise, in whole or in part, is to be treated as an owner of a principal unit.

(3) For the purposes of subsection (1)(a) and (g)—

• (a) a subsidiary body corporate is to be treated as the unit owner of the principal unit that was subdivided to create the subsidiary unit title development; and

• (b) a reference to a unit includes any unit in the subsidiary unit title development.

(4) Subsection (1)(ab) does not affect the right of an owner to apply for minority relief under section 191 or to object to a designated resolution under sections 192 to 195.

(1) This section applies to owners of units who lease or license their unit, and who are absent from New Zealand for longer than 3 consecutive weeks.

(2) An owner of a unit to whom this section applies must—

• (a) appoint a person in New Zealand to act as his or her agent unless the lease is in respect of a residential tenancy under the Residential Tenancies Act 1986 and an agent has already been appointed under that Act; and

• (b) advise the body corporate of the agent’s name, address for service, and contact details.

(3) A person appointed as an agent under subsection (2) or the Residential Tenancies Act 1986 has the power to enforce the body corporate operational rules.

(4) If an owner of a unit does not appoint an agent or the agent fails or refuses to enforce the body corporate operational rules, the body corporate may enforce those rules.

(1) The subsidiary body corporate may only consent to additions or structural alterations under section 68(1)(g) to any principal unit in the subsidiary unit title development that materially affect any other unit in the parent unit title development or the common property of its parent unit title development if the subsidiary body corporate has obtained the written consent of—

• (a) the body corporate for each unit title development located between it and its head unit title development; and

• (b) the body corporate for its head unit title development.

(2) A parent body corporate or the head body corporate must not unreasonably withhold consent under subsection (1) and may not withhold consent unless the proposed addition or structural alteration changes the boundaries of the subsidiary unit title development or has a material impact on the use or amenities of the parent unit title development or head unit title development.

(1) This section applies to the owner of a principal unit in a subsidiary unit title development.

(2) The owner of the principal unit has the same rights relating to access and enjoyment of the common property of the following unit title developments as if the owner of the principal unit were the owner of a principal unit in that unit title development:

• (a) the parent unit title development of the subsidiary unit title development:

• (b) any other parent unit title development located between the subsidiary unit title development and its head unit title development:

• (c) the head unit title development.

(3) The owner of the principal unit must comply with the body corporate operational rules of the following unit title developments in addition to the body corporate operational rules of the subsidiary unit title development:

• (a) the parent unit title development of the subsidiary unit title development:

• (b) any other parent unit title development located between the subsidiary unit title development and its head unit title development:

• (c) the head unit title development.

(1) The body corporate has the powers and duties set out in—

• (a) sections 28 to 32 (which relate to the fixing and reassessment of the ownership interest and the utility interest):

• (b) section 69 (which permits the body corporate to act as an agent for the unit owners who lease or licence their principal unit and are absent for the purpose of enforcing the body corporate operational rules):

• (c) section 73 (which requires the body corporate to keep and maintain a register of all the owners of principal units and accessory units on the plan):

• (ca) section 73A (which relates to the body corporate's power to sign documents on behalf of owner):

• (d) section 74 (which requires the payment of ground rental to a lessor):

• (e) section 77 (which relates to the calling of general meetings):

• (f) section 91(5) (which requires the body corporate to comply with the body corporate operational rules):

• (g) section 93 (which is the general power of delegation):

• (h) sections 100 and 102 to 105 (which relate to the establishment and maintenance of the funds):

• (i) section 101 (which requires the body corporate to establish and maintain a long-term maintenance plan):

• (j) section 106 (which relates to the raising of amounts for each fund and the imposition of levies on the unit owners to establish and maintain each fund):

• (k) sections 114 and 115 (which relates to the spending, borrowing, and investing of money and the distribution of surplus money and property):

• (l) section 116 (which relates to the keeping of accounting records and submission of its yearly financial statements to an independent auditor):

• (m) section 119 (which relates to insurance of the buildings and other improvements on the land):

• (n) section 120(4) (which relates to the application of insurance moneys in or towards reinstatement of the development):

• (o) section 122 (which relates to repair and maintenance of the common property, assets designed for use in connection with the common property, infrastructure, and building elements and access for those purposes):

• (p) section 189 (which relates to the provision of records and documents on request from a unit owner):

• (q) any other provisions of this Act, any other Act, or the regulations that confer powers or duties on the body corporate and subject to any limitations to those powers and duties in this Act, any other Act, or the regulations.

(2) Except as expressly provided in this Act, the body corporate does not have any duties in respect of a future development unit that comprises part of the unit title development.

(1) A body corporate must keep and maintain a register of all owners of principal units and accessory units on the unit plan in accordance with the regulations.

(2) The owner of a principal unit must notify the body corporate in writing of any changes to the information held in the register that relates to his or her unit.

(3) Despite anything in this Act, where the owner of a principal unit transfers his or her unit to any other person, until the body corporate is notified in writing of the transfer,—

• (a) that owner of the principal unit remains liable to the body corporate for all contributions levied by the body corporate under section 106 for his or her unit:

• (b) the transferee is only entitled to exercise the voting rights for the unit at a general meeting with the consent of the other owners of principal units who are present at the meeting.

(4) Nothing in subsection (3)(a) restricts the right of the owner of the principal unit to recover any amounts from a transferee that the owner has paid in respect of contributions levied by the body corporate.

(1) A body corporate may serve an owner of a principal unit with a notice in the prescribed form requiring the owner to sign any document in order to carry out a resolution either passed by the body corporate or, if an objection has been made, confirmed by the court under section 194(4)(b).

(2) If the notice relates to a designated resolution, the notice may not be served until the time for making an objection under section 193 has passed.

(3) If the notice relates to a resolution for which an application for relief has been made under section 191, the notice may not be served until the time for making that application has passed.

(4) The body corporate may sign the document on behalf of the owner if the owner—

• (a) fails to sign the document within 10 working days after being served with the notice; or

• (b) refuses to sign the document.

(5) If the body corporate signs any document pursuant to subsection (3), the body corporate must certify in writing that it has complied with subsections (1) to (3) subsections (1) to (4) and give a copy of the certificate to the Registrar when lodging the document for registration.

(6) The Registrar may rely on the certificate.

(1) This section applies in relation to a unit development on leasehold land.

(2) The body corporate must pay the lessor the ground rental from any levies collected from the unit owners before making any other payments.

(3) For the purposes of subsection (2), in a layered unit title development the body corporate referred to in that subsection is the head body corporate.

(1) All meetings of a body corporate are general meetings.

(2) A general meeting is either an annual general meeting or extraordinary general meeting.

(1) The first annual general meeting of a body corporate must be held as soon as practicable and in any event within 6 months after the date of the deposit of a unit plan or after the settlement date of the first sale of a unit, whichever is the later.

(2) At the first annual general meeting the body corporate must nominate and elect a chairperson in accordance with the regulations.

(3) Subsequent annual general meetings must be held once every calendar year and not later than 15 months after the previous annual general meeting.

(1) An annual general meeting must be called by the chairperson in accordance with the regulations.

(2) An extraordinary general meeting of a body corporate—

• (a) must be called by the chairperson in accordance with the regulations if a notice asking for an extraordinary general meeting to consider and decide motions proposed in the notice is—

  • (i) signed by or for the unit owners of not less than 25% of the principal units; and

  • (ii) given to the chairperson; or

• (b) may be called at any other time by the chairperson or the body corporate committee in accordance with the regulations.

(1) A parent body corporate or parent body corporate committee must give notice of any general meeting to each of its subsidiary bodies corporate in accordance with the regulations.

(2) The parent body corporate or parent body corporate committee must not vote on a resolution unless notice has been given.

(3) If the parent body corporate or parent body corporate committee fails to give notice in accordance with the regulations, the vote is void.

(1) When the subsidiary body corporate receives notice of a general meeting of its parent body corporate, the chairperson of the subsidiary body corporate must call a general meeting and that meeting must be held before the parent body corporate’s general meeting.

(2) When the subsidiary body corporate receives notice of a general meeting of its parent body corporate committee, the subsidiary body corporate committee, if there is one, or the chairperson of the subsidiary body corporate if there is no subsidiary body corporate committee, must call a general meeting and that meeting must be held before the parent body corporate committee’s general meeting.

(3) At the meeting, the subsidiary body corporate or subsidiary body corporate committee, as the case may be, must consider the matters on the agenda of its parent body corporate’s or parent body corporate committee’s general meeting.

(4) Any matter on the agenda relating to a motion to be decided by—

• (a) ordinary resolution must first be decided by ordinary resolution at the meeting of the subsidiary body corporate or subsidiary body corporate committee, as the case may be:

• (b) special resolution must first be decided by special resolution at the meeting of the subsidiary body corporate or subsidiary body corporate committee, as the case may be.

(5) If the ordinary resolution or special resolution—

• (a) is passed, the subsidiary body corporate or subsidiary body corporate committee may direct its subsidiary body corporate representative to vote in favour of the motion at the parent body corporate or parent body corporate committee general meeting:

• (b) fails, the subsidiary body corporate or subsidiary body corporate committee must direct its subsidiary body corporate representative to vote against the motion at the parent body corporate or parent body corporate committee general meeting.

(6) Despite subsection (5), a subsidiary body corporate or subsidiary body corporate committee may direct the subsidiary body corporate representative to abstain from voting on any matter on the agenda if,—

• (a) in the case of a matter to be decided by ordinary resolution, it decides by ordinary resolution to abstain from voting on that matter; or

• (b) in the case of a matter to be decided by special resolution, it decides by special resolution to abstain from voting on that matter.

(1) A subsidiary body corporate must ensure that at all times there is a person (the subsidiary body corporate representative) appointed by it to represent it at meetings of its parent body corporate or its parent body corporate committee (if any) and must give written notice of that appointment to its parent body corporate.

(2) The parent body corporate or parent body corporate committee is entitled to rely on that notice as conclusive evidence that the subsidiary body corporate representative named in the notice has authority to act on the subsidiary body corporate’s behalf.

(1) The subsidiary body corporate representative may attend the general meetings of its parent body corporate or its parent body corporate committee, as the case may be.

(2) If the subsidiary body corporate representative attends a general meeting, it must represent its body corporate or its body corporate committee—

• (a) in the way its body corporate or its body corporate committee directs; and

• (b) subject to paragraph (a), in a way that is in the best interests of its body corporate or its body corporate committee.

(3) The subsidiary body corporate representative must abstain from voting on any matter to be decided by ordinary or special resolution at a general meeting if the body corporate has not given any directions to the subsidiary body corporate representative in relation to the matter.

(4) Any vote cast by a subsidiary body corporate representative is, in the absence of evidence to the contrary, to be treated as having been cast in accordance with subsection (2).

(1) At a general meeting of a body corporate, the persons entitled to exercise the voting power in respect of not less than 25% of the principal units or their proxies constitute a quorum, provided that if the body corporate contains 2 or more members a quorum must be at least 2 members.

(2) Except as otherwise provided for in this Act and the regulations, no business may be transacted at a general meeting of the body corporate unless a quorum is present at the time.

(1) A person eligible to vote at a general meeting of the body corporate (eligible voter) is a person who is of or over the age of 16 years and—

• (a) whose name is entered on the register of owners of principal units as—

  • (i) the owner of a principal unit; or

  • (ii) the representative of that owner; or

• (b) who is the nominee of a company the name of which is entered on the register of owners of principal units as the representative of the owner; or

• (c) who is a subsidiary body corporate representative.

(2) For subsection (1)(a)(ii), a person is a representative of the owner of a principal unit if—

• (a) the person is a guardian, trustee, receiver, or other representative of the owner, and is authorised to act on the owner’s behalf; or

• (b) the person is authorised by law to administer, manage, or control the property of the owner.

(3) An eligible voter may not vote unless all body corporate levies and other amounts that are from time to time payable to the body corporate in respect of his or her unit have been paid.

(4) In the case of an eligible voter who is a subsidiary body corporate representative, the eligible voter may not vote unless all body corporate levies and other amounts that are from time to time payable to the body corporate by the subsidiary body corporate have been paid.

(5) An eligible voter whose interest in his or her unit is subject to a registered mortgage must, if required by that mortgage, obtain the consent of the mortgagee before exercising a vote.

(6) The payment of any body corporate levies and other amounts that are from time to time payable to the body corporate by the owner of a principal unit and that are disputed by the owner does not affect the right of that owner to dispute the payment if the sole purpose of making the payment was to exercise that owner's entitlement to vote.

(7) Nothing in this section prevents a mortgagee of a principal unit from—

• (a) directing the owner to vote in a particular manner; or

• (b) exercising a vote on behalf of the owner in accordance with the Property Law Act 2007 or in accordance with any provision to that effect in the mortgage.

(8) A mortgagee must give written notice to the body corporate if it intends to exercise a vote on behalf of the owner under subsection (7)(b).

(1) This section applies if a motion is to be decided by ordinary resolution, subject to a request for a poll, at a general meeting of a body corporate.

(2) One vote only may be exercised for each principal unit.

(2A) A subsidiary body corporate representative has 1 vote for the principal unit that was subdivided to create the subsidiary unit title development.

(3) For a body corporate meeting to pass an ordinary resolution, a majority in number of the eligible voters who vote on the resolution must vote in favour of the resolution.

(4) An eligible voter whose interest in his or her unit is subject to a registered mortgage must, if required by that mortgage, obtain the consent of the mortgagee before exercising a vote.

(5) An ordinary resolution passed under this section is subject to a request for a poll under section 86 and the motion being confirmed by that poll.

(1) This section applies if a motion is to be decided by special resolution, subject to a request for a poll, at a general meeting of a body corporate.

(2) One vote only may be exercised for each principal unit.

(2A) A subsidiary body corporate representative has 1 vote for the principal unit that was subdivided to create the subsidiary unit title development.

(3) For a special resolution to pass, 75% of the eligible voters who vote on the resolution must vote in favour of the resolution.

(3A) An eligible voter whose interest in his or her unit is subject to a registered mortgage must, if required by that mortgage, obtain the consent of the mortgagee before exercising a vote.

(4) A special resolution passed under this section is subject to a request for a poll under section 86 and the motion being confirmed by that poll.

(1) A poll may be requested by any eligible voter voting on a motion passed by ordinary resolution under section 84 or by special resolution under section 85.

(2) The eligible voter must request the poll in person at the meeting.

(1) This section applies if—

• (a) a motion is passed by ordinary resolution or special resolution; and

• (b) a poll is properly requested.

(2) One vote only may be exercised for each principal unit and only those who voted on the motion under section 84 or 85 are entitled to vote.

(2A) For the motion to pass by ordinary resolution where a poll is requested, 50% of the ownership interest represented by those voting must vote in favour of the motion.

(3) For the motion to pass by special resolution where a poll is requested, 75% of the ownership interest represented by those voting must vote in favour of the motion.

(4) The result of any poll is the resolution of the general meeting.

(1) Any matters at a general meeting of a body corporate relating to an exercise of a duty or power that may not be delegated under section 93(2), or that have not been delegated to the body corporate committee, must be decided by special resolution.

(2) Except as otherwise provided in this Act, all other matters to be decided by the body corporate at a general meeting must be decided by ordinary resolution.

(3) Any matter that is not on the agenda for a general meeting may be discussed at the meeting but, unless all the eligible voters are present at the meeting, no resolution may be voted on and made in respect of that matter except to include that matter on the agenda for a subsequent general meeting.

(4) Every resolution must be recorded in writing.

(1) An eligible voter may exercise the right to vote either by being present in person or by proxy.

(2) A proxy for an eligible voter is entitled to attend and be heard at a body corporate meeting as if the proxy were the eligible voter.

(3) A proxy must be appointed by notice in writing signed by the eligible voter.

(4) If there are 2 or more eligible voters who own 1 principal unit and they are jointly entitled to exercise 1 vote and wish to do so by proxy, that proxy must be jointly appointed by them and may be 1 of them.

(1) An eligible voter or his or her proxy may exercise the right to vote at a body corporate meeting by casting a postal vote.

(2) Every postal vote must be in the prescribed form.

(3) A postal vote must be sent to the chairperson or to the person authorised by the chairperson to receive and count postal votes.

(1) A resolution may be passed without a general meeting in accordance with this section.

(2) Notice of the resolution must be given to eligible voters in accordance with the regulations.

(3) A resolution in writing signed by not less than 50% of eligible voters in respect of an ordinary resolution or 75% of eligible voters in respect of a special resolution is as valid as if it had been passed at a meeting of those voters.

(1) The body corporate operational rules are the rules prescribed by regulations under section 196(h) (subject to any alterations that may be deposited with the unit plan) and apply to every body corporate.

(2) The body corporate may amend, revoke, or make additions to the body corporate operational rules at any time after the date the unit plan is deposited.

(5) All the rules referred to in this section are binding on—

• (a) the body corporate; and

• (b) the owners of principal units; and

• (c) any person who occupies a principal unit; and

• (d) any mortgagee who is in possession of a principal unit.

(6) For the purpose of subsection (5), principal unit includes a future development unit.

(1) Any amendment or addition to the body corporate operational rules must relate to—

• (a) the control, management, administration, use, or enjoyment of the principal units, future development units, accessory units, or common property; or

• (b) the regulation of the body corporate.

(2) No powers or duties may be conferred or imposed on the body corporate that are not incidental to the powers and duties conferred or imposed on the body corporate under this Act.

(3) Any amendment, revocation, or addition—

• (a) must be made by ordinary resolution at a body corporate general meeting; and

• (b) does not have effect until the body corporate has notified the Registrar in the prescribed form.

(4) Any amendment or addition that is inconsistent with any provision of this Act or any other enactment or rule of law is invalid.

(1) Subject to subsection (2), in the event of a conflict between—

• (a) a subsidiary body corporate’s operational rules and its parent body corporate’s operational rules, the parent body corporate’s operational rules prevail:

• (b) a subsidiary body corporate’s operational rules and its head body corporate’s operational rules, the head body corporate’s operational rules prevail.

(2) If a subsidiary body corporate has deposited alterations to the rules in accordance with section 91 that do not conflict with the operational rules of any of the bodies corporate listed in subsection (3), then those bodies corporate may not make or amend any of their rules that conflict with the subsidiary body corporate’s operational rules unless the subsidiary body corporate agrees by ordinary resolution to the making or amendment of the rule.

(3) The bodies corporate are—

• (a) the subsidiary body corporate’s parent body corporate:

• (b) any parent body corporate located between the subsidiary body corporate’s parent body corporate and the head body corporate:

• (c) the head body corporate.

(1) Except as provided in subsection (2), a body corporate may delegate any of its duties or powers, either generally or specifically, to the body corporate committee by special resolution and written notice.

(2) The body corporate must not delegate any of the powers or duties set out in—

• (a) subsection (1) (which is the general power of delegation):

• (b) section 29(1) (which requires the assignment of a utility interest for the deposit of a unit plan under section 9(1) or 17(1) ):

• (ba) section 30 (which requires the assignment of a deemed utility interest for a future development unit):

• (b) section 31 (which provides for the reassessment of ownership interests and utility interests):

• (c) section 91(5) (which requires the body corporate to comply with the body corporate operational rules):

• (h) section 120(4) (which relates to the application of insurance monies in or towards reinstatement of the development).

(1) A body corporate committee to which any duties or powers are delegated under section 93(1) may, unless the delegation provides otherwise, perform the duties and exercise the powers in the same manner, subject to the same restrictions, and with the same effect as if it were the body corporate.

(2) The body corporate committee must not delegate any of its delegated duties or powers.

(3) The body corporate committee, when purporting to perform a duty or exercise a power under a delegation,—

• (a) is, in the absence of proof to the contrary, presumed to do so in accordance with the terms of that delegation; and

• (b) must produce evidence of the body corporate committee’s authority to do so, if reasonably requested.

No delegation affects or prevents the performance of any duty or the exercise of any power by a body corporate, or affects the responsibility of the body corporate for the actions of the body corporate committee acting under the delegation.

A delegation under section 93(1) may be revoked by special resolution and written notice to the body corporate committee.

(1) A body corporate of a unit title development of 9 or fewer principal units may form a body corporate committee.

(2) A body corporate of a unit title development of 10 or more principal units must form a body corporate committee unless the body corporate, by special resolution, decides not to form a body corporate committee.

Any matters at a meeting of a body corporate committee must be decided by a simple majority of votes.

A body corporate committee must report, as prescribed in the regulations, to the body corporate on the exercise of the duties or powers delegated to it by the body corporate under section 93(1).

(1) A body corporate must establish and maintain an operating account for the purpose of meeting the expenses described in subsection (2).

(2) The expenses are—

• (a) those relating to the management and governance of a unit title development:

• (b) those relating to provision of services and amenities for the benefit of the unit title development:

• (c) costs associated with statutory or regulatory compliance:

• (d) any ground rental or licence fees relating to the base land:

• (e) those incurred at least once a year relating to the maintenance of the unit title development.

(3) The body corporate must establish a current account at a bank and may, by special resolution, nominate a person or persons who may operate the account and specify the manner in which it may be operated.

(1) A body corporate must establish and regularly maintain a long-term maintenance plan.

(2) A long-term maintenance plan must cover a period of at least 10 years from the date of the plan or the last review of the plan.

(3) The purpose of a long-term maintenance plan is to—

• (a) identify future maintenance requirements and estimate the costs involved; and

• (b) support the establishment and management of the funds; and

• (c) provide a basis for the levying of owners of principal units; and

• (d) provide ongoing guidance to the body corporate to assist it in making its annual maintenance decisions.

(1) A body corporate must establish and maintain a long-term maintenance fund unless the body corporate, by special resolution, decides not to establish a long-term maintenance fund.

(2) The fund may only be applied towards spending relating to the long-term maintenance plan.

(3) The body corporate must, by special resolution, approve any amount to be spent on any 1 maintenance item if the amount exceeds the amount specified for that item in the long-term maintenance plan by more than 10%.

A body corporate may establish and maintain 1 or more contingency funds to provide for unbudgeted expenditure.

A body corporate may establish and maintain a capital improvement fund to provide for spending that adds to or upgrades the unit title development if that spending is not provided for in the long-term maintenance plan.

The body corporate must establish, in accordance with any regulations, either—

• (a) separate bank accounts for each of the funds; or

• (b) a single bank account in which the respective funds are kept entirely separate and are able to be identified.

(1) A body corporate may determine from time to time the amounts to be raised for each fund and impose levies on the owners of principal units to establish and maintain each fund.

(2) The levies must be calculated as follows:

• (a) in the case of the operating account, long-term maintenance fund, and any contingency fund, in proportion to each unit owner’s utility interest; and

• (b) in the case of any capital improvement fund, in proportion to each unit owner’s ownership interest.

(4) The owner of a future development unit is liable to pay contributions levied by the body corporate under this section from the date that the future development unit is first in use as a place of residence or business or otherwise and from that date that future development unit is to be treated as a principal unit for the purposes of this section.

(5) Any levies imposed by a subsidiary body corporate must be sufficient to pay any levies raised under subsection (1) by the head body corporate, its parent body corporate, or any other parent body corporate located between the subsidiary body corporate and its head body corporate.

(1) The owner of a future development unit must notify the body corporate when all or any part of it is in use as a place of residence or business or otherwise.

(2) The notice must—

• (a) be in writing; and

• (b) contain details of the building or part of the building that is in use as a place of residence or business or otherwise; and

• (c) state the date of occupation.

(3) The notice must be given within 10 working days of the date of occupation.

(4) As soon as practicable after receiving the notice, the body corporate must send the owner a notice—

• (a) advising the owner of the amount of any levies imposed under section 106; and

• (b) setting out how those levies were calculated.

(5) Failure of the owner to give notice to the body corporate under subsection (1) does not prevent the body corporate from charging levies from the date of occupation.

The body corporate may enter into an agreement with the owner of a future development unit for the undertaking of any work or the expenditure of any money for the mutual benefit of the body corporate and that owner.

(1) A body corporate must fix the date on or before which payments of levies are due.

(2) The amount of any unpaid levy, together with any reasonable costs incurred in collecting the levy, is recoverable as a debt due to the body corporate by the person who was the unit owner at the time the levy became payable or by the person who is the unit owner at the time the proceedings are instituted.

(1) If any amenity or service is supplied to the unit title development and the body corporate installs and maintains a meter recording the use of that amenity or service by any principal unit, the body corporate may charge the owner of that unit the cost of the usage as indicated on the meter.

(2) Any charge is recoverable from the owner of the principal unit as if it were a levy.

(3) The cost of the usage charged by the body corporate to the principal unit owner must be the same as that charged by the provider of the amenity or service.

(1) This section applies where the body corporate does any repair, work, or act that it is required or authorised to do, by or under this Act, or by or under any other Act, but the repair, work, or act—

• (a) is substantially for the benefit of 1 unit only; or

• (b) is substantially for the benefit of some of the units only; or

• (c) benefits 1 or more of the units substantially more than it benefits the others or other of them.

(2) Any expense incurred by the body corporate in doing the repair, work, or act is recoverable by it as a debt in any court of competent jurisdiction (less any amount already paid) in accordance with the following:

• (a) so far as the repair, work, or act benefits any unit by a distinct and ascertainable amount, the owner at the time when the expense was incurred and the owner at the time when the action is instituted are jointly and severally liable for the debt; or

• (b) so far as the amount of the debt is not met in accordance with the provisions of paragraph (a), it must be apportioned among the units that derive a substantial benefit from the repair, work, or act rateably according to the utility interest of those units, and in the case of each of those units, the owner at the time when the expense was incurred and the owner at the time when the action is instituted are jointly and severally liable for the amount apportioned to that unit.

(3) Despite subsection (2)(b), if the court considers that it would be inequitable to apportion the amount of the debt in proportion to the utility interest of the unit owners referred to in that paragraph, it may apportion that amount in relation to those units in the shares as it thinks fit, having regard to the relative benefits to those units.

(1) This section applies if the body corporate does any repair, work, or act that it is required or authorised to do, by or under this Act, or by or under any other Act, and the repair, work, or act was rendered necessary by reason of any wilful or negligent act or omission on the part of, or any breach of the Act, the body corporate rules, or any regulations by, any unit owner or his or her tenant, lessee, licensee, or invitee.

(2) Any expense incurred by the body corporate in doing the repair, work, or act, together with any reasonable costs incurred in collecting the expense, is recoverable as a debt due to the body corporate (less any amount already paid) by the person who was the unit owner at the time the expense became payable or by the person who is the unit owner at the time proceedings are instituted.

(1) If a unit owner owes money to the body corporate under section 106, 109, 110, 111, or 112, interest accrues in respect of so much of the debt as remains unpaid.

(2) The amount of interest charged by a body corporate in relation to any unpaid debt must not exceed 10% per annum.

(1) For the purpose of sections 106 to 113, a subsidiary body corporate is to be treated as the unit owner of the principal unit that was subdivided to create the subsidiary unit title development.

(2) In section 111 a reference to a unit includes a subsidiary unit title development.

(3) In section 112(1) the reference to a unit owner includes, in relation to a principal unit that is subdivided to create a subsidiary unit title development, a unit owner in the subsidiary unit title development.

(1) A body corporate may—

• (a) spend or borrow money; and

• (b) invest any money in any investment authorised by law for the investment of trust funds.

(2) The body corporate may not grant a mortgage or a charge or any encumbrance over the common property.

The body corporate may distribute money or personal property in its possession and surplus to its requirements among the unit owners in the same proportions in which the money was raised or the money which was used to pay for the property was raised.

(1) A body corporate must keep accounting records that—

• (a) correctly record and explain the transactions of the body corporate; and

• (b) will at any time enable the financial position of the body corporate to be determined with reasonable accuracy; and

• (c) will enable the financial statements of the body corporate to be readily and properly audited or reviewed.

(2) Within 2 months after the end of each financial year, the body corporate must—

• (a) submit its financial statements to an independent auditor for auditing; or

• (b) submit its financial statements to an accountant for review; or

• (c) engage an accountant to undertake specific verification procedures as determined by the body corporate by special resolution as a general meeting.

(2A) The financial statements must be in the prescribed form and contain the matters prescribed by regulations.

(3) The body corporate must pay any costs incurred under subsection (2).

(4) A copy of the financial statements for the most recent financial year must accompany the notice of the annual general meeting.

(5) The body corporate must comply with any reasonable request by a person appointed to undertake any of the functions described in subsection (2), that the body corporate answer questions or provide information within 20 working days after receiving the request.

(6) Any person appointed to undertake any of the functions described in subsection (2) must be a person who is qualified to act as an auditor for a company in accordance with section 199 of the Companies Act 1993.

(7) The body corporate may, at the annual general meeting, decide by special resolution that subsection (2) does not apply for a particular year.

(1) The purpose of this section is to enable the chief executive to monitor and report on the financial and maintenance planning regimes of bodies corporate.

(2) For the purpose of this section, a body corporate, on receiving written notice from the chief executive, must permit the chief executive access to—

• (a) the unit title development; and

• (b) all relevant information that is in the possession of the body corporate.

(3) Subsection (2) does not authorise the chief executive, or any person acting on behalf of the chief executive, to enter any principal unit without the unit occupier’s permission.

(4) In this section, relevant information means any documents relating to the body corporate’s long-term financial and maintenance planning regime.

(5) The chief executive must give reasonable notice to the body corporate of a request under this section.

(1) In this section and sections 119 to 121, unless the context otherwise requires,—

(2) This section and sections 119 to 121 apply despite any enactment, rule of law, or agreement to the contrary.

(3) The body corporate, every unit owner, and every person entitled as mortgagee, by virtue of a registrable mortgage of any principal unit, have an insurable interest in the property covered by the principal insurance policy.

(3A) For the purposes of subsection (3), in a layered unit title development—

• (a) the body corporate referred to is the head body corporate; and

• (b) a unit owner is a unit owner in any unit title development that is part of the layered titled development.

(4) The body corporate must, by notice in writing, inform the insurer and keep the insurer informed of the name and address of every unit owner and mortgagee.

(5) Nothing in subsection (4) prevents a unit owner or mortgagee from giving notice to an insurer.

(1) The body corporate must insure and keep insured all buildings and other improvements on the base land to their full insurable value.

(2) The body corporate must take out any other insurance it is required by law to take out and may take out additional insurance if it considers it practical to do so.

(3) The body corporate must, before the commencement of any work by the body corporate or the unit owner, notify its insurer of any additions or structural alterations to any units.

(4) For the purposes of this section, in a layered unit title development the body corporate referred to in this section is the head body corporate.

(1) A principal insurance policy remains in full force and effect until—

• (a) the insurer serves on the body corporate or its insurance broker and any mortgagee of which the insurer has notice, a notice to the effect that the policy will lapse or be cancelled on the date specified in the notice, that date not being earlier than 30 days after the date on which the notice is served; and

• (b) the date specified in the notice.

(2) Despite subsection (1)(a), it is sufficient if the insurer sends the notice to the body corporate or mortgagee to the last address given to the insurer by the body corporate under section 118(4).

(3) If the insurer considers that a unit owner or mortgagee is in default under the principal insurance policy, the notice must specify the nature of the default and state that the lapsing or cancellation of the policy is conditional upon the default not being remedied before the date specified in the notice.

(4) Money paid by the insurer under the principal insurance policy must be applied in or towards reinstatement of the unit title development unless the body corporate decides otherwise by special resolution at a general meeting.

(5) Sections 192 to 195 apply to a decision made under subsection (4).

(6) If money is applied in or towards reinstatement, then a mortgagee is not entitled to demand that any part of the money be applied in or towards repayment of the mortgage debt.

(7) Nothing in this section limits or affects the rights of any person in or to the proceeds of the principal insurance policy under any of sections 61 and 160 to 170.

(1) Nothing in section 72, 118, or 120 limits the right—

• (a) of a unit owner to take out an insurance policy against destruction of or damage to the unit owner’s unit:

• (b) of a mortgagee of a unit to require the unit owner, as a condition of the loan, to effect a policy of insurance (a mortgage redemption policy) to indemnify the unit owner against liability to repay the whole or any part of the sum secured to the mortgagee in the event of the destruction or damage of the unit.

(2) Despite section 119(1),—

• (a) if the principal and accessory units in the unit plan are stand-alone buildings units, a body corporate may, by special resolution at a general meeting, require each unit owner to insure all the improvements within the boundaries of his or her unit (the body corporate remaining responsible for insuring all improvements within the common property boundaries):

• (b) indemnity cover is permitted if full replacement cover is not available in the market.

(3) A payment made under a mortgage redemption policy by the insurer must be made to the mortgagees whose interests are noted on the policy in the order of the priority assigned to each mortgagee.

(4) No mortgage redemption policy is liable to be brought into contribution with any other insurance policy except another mortgage redemption policy taken out in respect of the same debt.

(5) This section applies despite any rule of law to the contrary.

(1) The body corporate must manage, maintain, and keep in a good state of repair the common property and any assets owned by the body corporate or designed for use in connection with the common property.

(2) The body corporate must maintain, repair, or renew all building elements and all infrastructure that relate to or serve more than 1 unit.

(3) The body corporate may access at all reasonable hours any unit to enable it to carry out repairs and maintenance under this section.

(4) Any costs incurred by the body corporate that relate to repairs to building elements and infrastructure contained in a principal unit are recoverable by the body corporate from the owner of that unit as a debt due to the body corporate (less any amount already paid) by the person who was the unit owner at the time the expense was incurred or by the person who is the unit owner at the time the proceedings are instituted.

(5) For the purposes of this section,—

• (a) a subsidiary body corporate is to be treated as the unit owner of the principal unit that was subdivided to create the subsidiary unit title development; and

• (b) a reference in subsection (4) to a principal unit includes the common property and units of that subsidiary unit title development.

(1) This section applies if a body corporate enters into a service contract for the unit title development before the date that the control period ends.

(2) The original owner and any associate of the original owner who is a member of the body corporate during the control period must exercise reasonable skill, care, and diligence and act in the best interests of the body corporate, as constituted after the date that the control period ends, in ensuring that—

• (a) the terms of the service contract achieve a fair and reasonable balance between the interests of the service contractor and the body corporate as constituted after the date that the control period ends; and

• (b) the terms are appropriate for the unit title development; and

• (c) the powers able to be exercised, and functions required to be performed, by the service contractor under the service contract—

  • (i) are appropriate for the unit title development; and

  • (ii) do not adversely affect the body corporate’s ability to carry out its functions.

(1) This section applies to a service contract—

• (a) to which the body corporate of a unit title development is a party; and

• (b) that was entered into before the date that the control period ended in relation to the unit title development concerned.

(2) The appropriate decision-maker may, on the application of the body corporate, require a person, or, as the case may be, persons, described in subsection (2A) to pay compensation to the body corporate if it appears to the appropriate decision-maker that the body corporate has suffered loss or damage because that person has, or, as the case may be, those persons have, failed to comply with section 123.

(2A) The persons referred to in subsection (2) are—

• (a) the original owner:

• (b) an associate of the original owner who was a member of the body corporate during the control period.

(3) An application under subsection (2) must be made within 3 years after that date that the control period ended.

(4) The appropriate decision-maker may, on an application made by the body corporate, make an order terminating the service contract if it appears to the appropriate decision-maker that the contract is harsh or unconscionable.

(1) The body corporate, a creditor of the body corporate, or any person having a registered interest in a unit, may apply to the High Court for the appointment of an administrator.

(1A) In the case of a layered development,—

• (a) a head body corporate or parent body corporate may apply to the High Court for the appointment of an administrator of any 1 of its subsidiaries:

• (b) a subsidiary body corporate may apply to the High Court for the appointment of an administrator of its parent body corporate.

(2) The High Court may, in its discretion on cause shown, appoint an administrator for an indefinite period or for a fixed period on such terms and conditions as to remuneration or otherwise as it thinks fit.

(3) The remuneration and expenses of the administrator are to be met out of the operating account.

(4) The administrator, to the exclusion of the body corporate and the body corporate committee, has and may exercise the powers of the body corporate and the committee, and is subject to the duties of the body corporate and the committee, or such of those powers and duties as the High Court orders.

(5) The administrator may, in writing, delegate any of the powers vested in the administrator and may revoke any delegation at any time.

(6) The High Court may, in its discretion on the application of the administrator or any other person referred to in subsection (1), remove or replace the administrator.

(7) On any application made under this section the High Court may make any order for the payment of costs as it thinks fit.

(8) As soon as an administrator is appointed, the administrator must lodge with the Registrar a sealed copy of the order of the High Court making the appointment.

(1) Despite any enactment or rule of law, this section and section 127 apply to the following proceedings if the proceedings are required to be taken against an owner of a principal unit or occupier of land or premises:

• (a) proceedings under the Occupiers’ Liability Act 1962; and

• (b) proceedings in tort; and

• (c) proceedings in respect of a breach of statutory duty.

(2) For the purposes of any proceedings to which this section and section 127 apply, the common property and each of the units are separate premises.

(3) In proceedings in respect of the common property, a body corporate may, in the circumstances described in subsection (3A), join the following in the proceedings:

• (a) an owner of a principal unit or former owner of a principal unit as a co-defendant; or

• (b) its head body corporate, its parent body corporate, or its subsidiary bodies corporate.

(3A) The circumstances are that the cause of action arose through the negligence or unauthorised act or omission of the owner or former owner or head body corporate, parent body corporate, or subsidiary body corporate, as the case may be.

(3B) Any judgment awarded to the plaintiff may be entered against the body corporate, its head body corporate, its parent body corporate, its subsidiary body corporate, or the owner jointly and severally.

(4) The amount of any judgment, including costs, given jointly and severally under subsection (3B), is recoverable as a debt by the body corporate from the unit owner against whom judgment is given in an action in any court of competent jurisdiction.

(5) For the purpose of this section, principal unit includes a future development unit.

(1) This section applies if a body corporate is the defendant in any proceedings referred to in section 126(1).

(2) The owners of principal units at the time judgment is entered are to be treated as having guaranteed to the plaintiff the payment by the body corporate of the full amount awarded under the judgment.

(3) However, any liability of an owner under subsection (2) is limited to an amount equal to that owner’s ownership interest payable by the body corporate, in accordance with the judgment, less—

• (a) the amount that the body corporate can recover under any insurance policy; and

• (b) any amount paid by a unit owner against whom judgment is given under section 126(3B) or is recovered from that unit owner under section 126(4) in proportion to that owner’s ownership interest.

(4) Any amount recovered from a unit owner under section 126(4), after satisfaction of the judgment by the body corporate, must (subject to any right of set-off) be refunded to that owner who has made a payment under subsection (3), in proportion to the amount of his or her payments.

(5) A unit owner who pays to the plaintiff any amount that the owner is liable to pay under this section is entitled to recover that amount as a debt from the body corporate but the body corporate may claim any amount due to it from that owner by way of set-off.

(6) For the purposes of this section, principal unit includes a future unit development unit.

In this subpart,—

A provision in any agreement to exclude or limit the obligation to disclose under this subpart is of no effect.

(1) Before a buyer enters into an agreement for sale and purchase of a unit the seller must provide a disclosure statement (a pre-contract disclosure statement) to the buyer.

(2) The pre-contract disclosure statement must be in the prescribed form and contain the prescribed information.

(1) This section applies if a buyer and a seller have entered into an agreement for sale and purchase.

(2) No later than the fifth working day before the settlement date, the seller must provide a disclosure statement (a pre-settlement disclosure statement) to the buyer.

(3) The pre-settlement disclosure statement—

• (a) must contain the prescribed information; and

• (b) must contain or be accompanied by a certificate given by the body corporate certifying that the information in the statement is correct.

(4) A body corporate may withhold a certificate referred to in subsection (3)(b) if any debt that is due to the body corporate by the unit owner is unpaid.

(1) A buyer may request an additional disclosure statement.

(2) The request may be made at any time before whichever of the following dates occurs first:

• (a) the close of the fifth working day after the date that the agreement was entered into; or

• (b) the close of the tenth working day before the settlement date.

(3) If a buyer makes a request in accordance with subsections (1) and (2), the seller must provide the additional disclosure statement to the buyer no later than the fifth working day after the date on which the request was made.

(4) The additional disclosure statement must contain the prescribed information.

(5) The buyer must pay to the seller all reasonable costs incurred by the seller in providing the additional disclosure statement, but the non-payment of these costs does not justify the seller withholding disclosure.

(1) This section applies if—

• (a) the seller provides a pre-settlement disclosure statement or an additional disclosure statement on a date that is later than the fifth working day before the settlement date; or

• (b) at the close of business on the last working day before the settlement date the seller has not provided a pre-settlement disclosure statement or, if one had been requested, an additional disclosure statement.

(2) The buyer may, by notice in writing, postpone the settlement date—

• (a) in the case referred to in subsection (1)(a), until the fifth working day after the date on which the latest disclosure statement to be given was provided; or

• (b) in the case referred to in subsection (1)(b), until the fifth working day after the date on which the disclosure statement is provided or, if more than 1 is required to be provided, the latest to be provided.

(1) This section applies if, before the settlement date, the seller becomes aware that information contained in a disclosure statement given under any of sections 130, 131, and 132 or this section—

• (a) was inaccurate when the disclosure statement was given; or

• (b) has, since it was given, become inaccurate.

(2) The seller must, within 5 working days after the date on which this section begins to apply, or any longer period agreed between the buyer and the seller, give the buyer a statement correcting the inaccuracy.

(3) If a statement is given under subsection (2) within the period of 5 working days before the settlement date, the buyer may, by notice in writing, postpone the settlement date until the fifth working day after the date on which the statement under subsection (2) was provided.

(1) This section applies if—

• (a) the seller does not provide the disclosure statements referred to in section 131 or 132 within the times prescribed in those sections; and

• (b) the buyer does not postpone the settlement date under section 133(2).

(2) The buyer may, by giving 10 days' notice in writing to the seller, cancel the sale and purchase agreement agreement for sale and purchase.

A disclosure statement given under any of sections 130, 131, 132, and 134 must be dated and signed by the seller or a person authorised by the seller.

The buyer is entitled to rely on the information contained in a disclosure statement given under any of sections 130, 131, 132, and 134 as conclusive evidence of the accuracy of the matters described in that information.

Immediately after the date that the control period ends, the original owner must give notice to the body corporate that the control period has ended.

The body corporate must hold a general meeting within 3 months from the date on which the original owner gives notice under section 138.

(1) At the meeting required by section 139, the original owner must provide to the body corporate—

• (a) a disclosure statement (a turn-over disclosure statement); and

• (b) a statement setting out any interest that the original owner or an associate of the original owner has in any contract or arrangement made by the body corporate at any time up to and including the date of the turn-over disclosure statement.

(2) The turn-over disclosure statement must be in the prescribed form and contain the prescribed information.

(1) This section applies if, at any time after the turn-over disclosure statement is provided, the original owner becomes aware that information provided under section 140 was inaccurate as at the date that the control period ended.

(2) The original owner must, within 5 working days after the date on which this section begins to apply, or any longer period agreed between the original owner and the body corporate, give the body corporate a statement correcting the inaccuracy.

(3) The body corporate is entitled to rely on the information contained in that statement as conclusive evidence of the accuracy of the matters described in that statement.