Unit Title — Due Diligence Guide for NZ Buyers
Unit title is the standard ownership structure for apartments, townhouses, and multi-unit developments in New Zealand. Each owner holds title to their individual unit and a share of common property, managed by a body corporate.
How Unit Title Differs
| Attribute | Unit Title | Other Types |
|---|---|---|
| Common property | Yes — shared with all owners | Freehold: No common property |
| Body corporate | Mandatory | Freehold: Not applicable |
| Ongoing levies | $2,000-$15,000+/year | Cross-lease: None |
| Management | Professional body corporate | Freehold: Self-managed |
Key Risks & Red Flags
Unit title risks centre on the body corporate and shared ownership:
- Underfunded body corporate: Inadequate long-term maintenance fund can mean large special levies.
- Deferred maintenance: Poor body corporate management can lead to building deterioration.
- Restrictive rules: Body corporate rules may prohibit pets, Airbnb, or renovations you want.
- Weathertightness: Multi-unit buildings (especially from 1994-2004) may have leaky building issues.
- Disputes: Body corporate disputes between owners can be stressful and expensive.
Due Diligence Checklist
- Request and review the pre-contract disclosure statement
- Consider requesting an additional disclosure statement
- Review the long-term maintenance plan and fund balance
- Check body corporate financial statements and any arrears
- Read the body corporate rules carefully
- Review minutes from recent AGMs
- Check for pending litigation or insurance claims
- Assess the building's weathertightness risk profile
- Standard checks: LIM report, building inspection, title review
Frequently Asked Questions
What is a pre-contract disclosure statement?
A document the seller must provide before you agree to buy a unit title property. It includes the body corporate's financial position, levies, rules, insurance, maintenance plan, and any pending issues.
Can I Airbnb my unit title apartment?
It depends on the body corporate rules. Many developments now restrict or prohibit short-term letting. Check the rules before buying if this is important to you.
Related Content
Unit Title
GlossaryA 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.
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.
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.
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
Property TypeFreehold (fee simple) is the most complete form of property ownership in New Zealand. The owner has full rights to the land and any buildings on it, with no co-owner dependencies or lease arrangements. Freehold is the most common and most straightforward title type for standalone houses.
Cross-Lease
Property TypeCross-lease is a uniquely New Zealand form of ownership where multiple owners share the freehold of a single parcel of land and lease their individual dwellings from each other. Each owner's dwelling is defined by a flats plan registered with LINZ.
Leasehold
Property TypeLeasehold means you own the buildings but lease the land from a separate landowner (often a council, iwi, church, or trust). You pay ground rent for the right to occupy the land, and the lease has a fixed term.
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