Information sheet: Maintenance in a unit title development

Maintenance and repair of the interior of a unit is the responsibility of the unit owner(s). In some instances, especially in developments with detached units, owners might also be responsible for maintenance and repair of the exterior of units.

A unit owner must maintain their unit so that it doesn’t have the potential to cause damage or harm to any common property, building element, infrastructure or other unit.

In addition to necessary repairs and maintenance, a unit owner can make alterations, additions or improvements to their unit, as long as they are within the unit boundary and don’t materially affect the common property or other units. If a unit owner wants to do any alterations or additions that will materially affect other units or common property, they must get written consent from the body corporate.

The unit owner(s) of all the units in the unit plan are members of an entity called the body corporate. Every unit title development has a body corporate.

The body corporate is responsible for maintaining the common property in the development as well as building elements (for example, cladding and the roof) and infrastructure (for example, stormwater or wastewater pipes) that relate to or serve more than one unit.

If the body corporate requires access to a unit to carry out repairs or maintenance to common property, building elements or infrastructure, the body corporate can access that unit at any reasonable hour to carry out that work.

The unit plan for the development shows which parts are units and which parts are common property. Reviewing the unit plan may help owners and the body corporate determine who is responsible for maintaining and repairing particular parts of the development.

Long term maintenance plans

As part of its responsibility for maintaining and repairing the common property under the new Unit Titles Act 2010, the body corporate must establish and maintain a long-term maintenance plan (LTMP) which covers at least the next 10 years.

For existing unit title developments the requirement to have a LTMP is covered by a transition period in the Unit Titles Act 2010, meaning that this requirement will not apply until 15 months after the Act comes into force. A body corporate can decide to put a LTMP in place by special resolution before the expiry of the transition period.

The purpose of a LTMP is to:

• identify future maintenance requirements and estimate the costs involved
• support the establishment and management of funds put aside for maintenance
• provide ongoing guidance to the body corporate to assist it in making its annual maintenance decisions.

Reviewing the LTMP can help in making unit owners, bodies corporate and prospective buyers aware of what parts of the development will require maintenance, how often maintenance is required and the likely cost to unit owners.

The LTMP must contain specific information. These requirements will be set out in regulations, due later in 2011.

LTMPs will vary between developments. Small developments with little common property will have a simple plan. For example, if the only common property is a driveway, the LTMP will likely only cover the driveway maintenance requirements, such as when it needs to be resealed.

On the other hand, a large or multi-storey development with a significant amount of common property will need a more comprehensive plan. For example, in a high-rise apartment development, the LTMP will likely cover a range of maintenance, such as repainting or replacement of cladding, washing windows or resealing a roof.

What does the body corporate use the LTMP for?

The LTMP helps the body corporate make decisions on what maintenance and repair work it needs to carry out each year. This could be something discussed at each annual general meeting.

In addition, the LTMP will help the body corporate budget. Contributions from unit owners to fund the LTMP may be levied as the need for work arises, or through regular levies on the unit owners.

How is maintenance and repair paid for?

The body corporate pays for any maintenance or repairs it carries out through levies on unit owners. Most of the time all owners share the cost of repairing and maintaining common property. But:

• if the work was carried out because a unit owner or their tenant acted negligently, or did something to cause damage, the body corporate can require that unit owner pay
• if the work benefits some unit owners over others, the body corporate can require those unit owners who benefit from the work to pay
• if the work is carried out on building elements or infrastructure that form part of a principal unit, the body corporate can require that unit owner to pay.

Long term maintenance fund

A body corporate must establish and maintain a long term maintenance fund unless it decides not to by special resolution. For existing unit title developments, this requirement will not apply during the transition period.

Money in the fund may only be applied towards spending relating to the LTMP.

The body corporate has the power to spend money held in the fund, unless that expenditure is more than 10% over the amount originally budgeted for a particular maintenance item. In that case, the body corporate has to pass a special resolution to approve the expenditure.

Where can I find more information?

For Unit Titles advice and information call 0800 Unit Titles (0800 864 884), visit the Unit title developments section of our website or email us at info@dbh.govt.nz