Unit Title
A form of property ownership for apartments, townhouses, and other multi-unit developments where each owner holds title to their individual unit and shares ownership of common property.
What is a Unit Title?
Unit title ownership is governed by the Unit Titles Act 2010 and is the standard form of ownership for apartments, townhouses, and other multi-unit developments in New Zealand. Each owner holds a separate title for their individual unit and a share of the common property (lobbies, driveways, gardens, structural elements).
Unit title properties are managed by a body corporate — a legal entity made up of all unit owners. The body corporate maintains the common property, manages the long-term maintenance plan, and sets rules for the development.
All unit owners must pay body corporate levies to fund maintenance and shared expenses. These levies can range from a few hundred dollars to several thousand per year, depending on the size and age of the development.
Why It Matters for Due Diligence
Before buying a unit title property, you need to understand the financial health of the body corporate. Request a pre-contract disclosure statement (seller must provide) and an additional disclosure statement (buyer can request at their cost).
Check the long-term maintenance plan and fund — an underfunded body corporate can mean large special levies in the future. Review the body corporate rules to ensure they align with your intended use (e.g. pet ownership, Airbnb).
How to Check
Request the pre-contract disclosure statement from the seller (mandatory under the Unit Titles Act 2010). This includes financial statements, levies, rules, and the long-term maintenance plan.
You can also request an additional disclosure statement for a more detailed picture. Your lawyer should review all body corporate documents as part of due diligence.
Frequently Asked Questions
What are body corporate levies?
Regular payments made by all unit owners to fund the maintenance of common property and shared services. Levies vary widely — from $1,000/year for a simple townhouse development to $10,000+/year for a large apartment building with a pool, gym, and concierge.
Can the body corporate tell me what to do with my unit?
Yes, to an extent. Body corporate rules can cover things like noise, pets, renovations, and short-term rentals. You're bound by the rules when you buy. Changes to rules require a special resolution (75% of votes).
Related Terms
Body Corporate
GlossaryThe legal entity made up of all unit title owners in a multi-unit development, responsible for managing common property and shared affairs.
Cross-Lease
GlossaryA form of property ownership where multiple owners share the freehold of a single piece of land and lease their individual dwellings from each other.
Freehold
GlossaryThe most complete form of property ownership in New Zealand, giving the owner full rights to both the land and any buildings on it.
LIM Report
GlossaryA Land Information Memorandum — an official council report summarising everything the council knows about a property.
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