unit titles act
📖 What is unit titles act? Meaning and definition
The Unit Titles Act 2010 (UTA) is a key piece of legislation in New Zealand for properties that are part of a unit title development, such as apartments or townhouses. It outlines the responsibilities of unit owners, including the obligation to pay levies and outgoings determined by the body corporate. These levies are typically calculated based on a unit owner's utility interest and cover shared costs for the property.
Under the UTA, if a unit owner fails to pay their levies by the due date, the body corporate can charge interest on the unpaid balance, up to a maximum of 10% per annum. The Act also allows for the recovery of additional charges, such as those for metered electricity or necessary repairs like waterproofing and smoke detector reinstallation, provided they are properly incurred and imposed.
While the Act primarily deals with the relationship between unit owners and the body corporate, it also clarifies limitations. For instance, one unit owner cannot use the UTA to bring a claim against a contractor hired by another unit owner. However, a body corporate can be held accountable under the Act for failing to ensure compliance with its rules, such as those related to rubbish storage, if a breach occurs and they do not adequately respond.
📋 Requirements
- The person must be a unit owner.
- Levies and outgoings must be properly determined by the body corporate.
- The due date for payment of levies must be fixed.
- The unit owner must have failed to pay levies by the due date.
- Additional charges must be properly incurred and imposed under the Act.
📝 Procedure
- The body corporate determines the levies payable and calculates each unit owner's share.
- The body corporate fixes the due date for levies to be paid.
- If levies are not paid by the due date, interest may accrue on the unpaid balance.
- The body corporate provides records to prove the amounts claimed, including levies, interest, and any additional charges.
- The body corporate may apply to the Tenancy Tribunal for recovery of unpaid amounts.
💡 Examples
- A unit owner in an apartment complex failed to pay their share of the building's maintenance levies, leading the body corporate to seek recovery of the unpaid amount, plus interest, under the Unit Titles Act 2010.
- The body corporate of a unit title development successfully recovered costs from a unit owner for unpaid metered electricity charges and expenses related to urgent leak repairs, as permitted by sections of the Unit Titles Act 2010.
- A unit owner was found liable for interest at 10% per annum on overdue levies after failing to meet the payment deadline set by the body corporate, as outlined in section 128 of the Unit Titles Act 2010.
- A body corporate was held responsible under the Unit Titles Act 2010 for not enforcing its rules regarding rubbish storage, after a unit owner complained about non-compliance on another principal unit.
📚 Legal basis
- Unit Titles Act 2010
❓ Frequently asked questions
What are 'levies' under the Unit Titles Act 2010?
Levies are regular payments that unit owners must make to their body corporate. These payments cover the costs of maintaining and managing the common property and shared services within a unit title development, calculated according to each owner's utility interest.
What happens if I don't pay my levies on time?
If you don't pay your levies by the due date, the body corporate can charge interest on the unpaid amount. The Unit Titles Act 2010 allows for interest to be charged up to 10% per annum on overdue levies.
Can a body corporate recover other charges besides levies?
Yes, the Unit Titles Act 2010 allows body corporates to recover additional charges, such as those for metered electricity or necessary repairs like waterproofing, provided these charges are properly incurred and imposed under specific sections of the Act.
Can I, as a unit owner, make a claim under the Unit Titles Act against a contractor hired by another unit owner?
Based on the cases, the Unit Titles Act 2010 does not provide for one unit owner to bring a claim under the Act against a contractor hired by another unit owner. Claims typically involve the body corporate or other unit owners directly.
Where can I find the specific rules about levies and charges?
Sections 80(1)(f), 121(1), 124(1), 125, 126, 127, and 128 of the Unit Titles Act 2010 are specifically mentioned as governing the payment of levies, interest, and additional charges. It is always best to refer to the full text of the Act or consult with a qualified lawyer for detailed guidance.