Important Update - Unit Titles Act 2010
From 20 June 2011 the Unit Titles Act 2010 replaces the Unit Titles Act 1972.
This will affect you if you:
- own a unit in a unit title development
- are selling a unit in a unit title development
- are purchasing a unit title development
- are intending to develop land and create a unit title development
The Unit Titles Act 2010 has been enacted by Parliament to modernise the law relating to unit titles and to provide greater flexibility and more transparency for owners and purchasers.
The key changes include:
- a comprehensive disclosure regime, including a three stage vendor disclosure process
- lowering the threshold for a unanimous resolution from 100% to 75%
- introducing a layered development concept suitable for mixed use or large unit title developments
- a requirement for every body corporate to put in place a long term maintenance plan (minimum of 10 years)
- providing a dispute resolution service through the Tenancy Tribunal making access to dispute resolution more cost effective
- providing a fairer system for calculating owners' contributions to the body corporate, especially where certain body corporate facilities may be of more benefit to one group of owners than others
- limiting the ability of developers to lock in long term management agreements and similar service contracts
- providing new default body corporate rules
- the ability of the body corporate to maintain specific funds for long term maintenance, capital improvements and contingency items.
Existing bodies corporate have until 30 September 2012 to comply with the new Act, including putting in place a long term maintenance plan and updating the body corporate rules to ensure compliance. The Act requires all existing bodies corporate to hold an annual general meeting by 20 December 2011.
If you are thinking of purchasing or selling a unit in a unit title development or intend to develop land under the Unit Titles Act 2010 please contact us for specific advice as to how these changes affect you.