More transparency from Unit Titles Act overhaul

The overhaul of the Unit Titles Act will ensure more transparency when dealing with funds, according to Crockers body corporate management general manager Darren Powell.

“We welcome the changes outlined in the new act. At Crockers, we exceed the minimum requirements in the act by ensuring all body corporate funds are lodged in a trust account. Each body corporate’s funds are kept entirely separate from all others. All interest earned is treated as belonging to the body corporate and is shown in the client’s financial statements.”

Crockers Body Corporate Management administers nearly 1000 bodies corporate. He said they were audited at Crocker’s cost three times a year.When it comes to selling apartments there are now three stages of disclosure, two of them compulsory, and one which is optional and at the expense of the buyer.

They include the amount of levies for the unit being sold, details of maintenance that the body corporate intends performing during the year, the balance of every account held by the body corporate, whether the unit or common property is or has been subject to a claim under the Weathertight Homes Resolution Service Act 2006 or any other civil proceedings relating to water penetration and an explanation on key aspects of the body corporate such as the its operation rules, ownership and utility interests.

Pre-contract disclosure and pre-settlement disclosure are compulsory and both require statements to be signed by the seller, or a person authorised by the seller.

The optional additional disclosure statement must also be signed and is aimed at providing additional information for those buyers wanting to carry out a more thorough pre-purchase due diligence. Buyers will be able to delay or cancel the contract if information is not provided within the prescribed time frames.

The act requires all bodies corporate to hold an annual general meeting within six months of June 2011.Crockers has already begun the process but Mr Powell said he had concerns that some body corporate management providers had not kept clients up to date with the changes.

More information is available at www.crockers.co.nz.Crockers Property was part of the external reference group consulted by government and the only industry representative involved over the five-year development time.