StraPlex | New Zealand
Unit Titles in New Zealand: The Law for Small Developments
In New Zealand, apartments, townhouses and duplexes with shared parts can be held as unit titles. Every owner belongs to the body corporate, which looks after the shared parts under the Unit Titles Act 2010 and the Unit Titles Regulations 2011. A 2022 amendment changed the rules in three stages, the last on 9 May 2024. Developments with fewer than 10 units have lighter rules.
The short answer
- A unit title gives you your own unit plus a share of the common property. The whole complex is the unit title development, and all the owners together are the body corporate.
- Each unit has an ownership interest, which sets its share of the common property, and a utility interest, which sets its share of body corporate costs.
- With fewer than 10 units, a body corporate manager and a committee are both optional. Every body corporate elects a chair at each AGM.
- Every body corporate needs a long-term maintenance plan of at least 10 years, and a long-term maintenance fund unless it opts out by special resolution.
- Disputes go to the Tenancy Tribunal, for claims up to $100,000.
What a unit title is
MBIE explains it this way: "Units that people own are called principal units. This could be an apartment, a set of offices or a shop. Accessory units are used with a principal unit, including carparks or storage spaces." The shared parts are the common property. A buyer "automatically" becomes a member of the body corporate.
The unit plan, held by Land Information New Zealand (LINZ), is "the formal record of all of the boundaries of the units, and the common property". Each unit has a record of title. Common property has none; its ownership is recorded on the supplementary record sheet, with the body corporate's address for service and its operational rules.
Ownership interest and utility interest
The ownership interest is "a number that reflects the relative value of each unit to the other units in the development", set by a registered valuer when the unit plan is deposited. It sets each owner's share of the common property and of the land if the unit plan is ever cancelled.
The utility interest sets each owner's share of body corporate costs. By default it equals the ownership interest. MBIE's example: in a development of 10 identical units, each has a 10% ownership interest, a 10% utility interest and pays 10% of the fees. Since the 2022 amendments a developer can give a unit several utility interests for different services, and the body corporate can reassess them by special resolution.
The rules by size
| Rule | Fewer than 10 units | 10 or more principal units |
|---|---|---|
| Body corporate manager | Optional | Required unless the body corporate opts out by special resolution |
| Committee | Optional (9 units or fewer); set up by ordinary resolution | Required unless confirmed otherwise by special resolution |
| Chair | Elected at every AGM | Elected at every AGM |
| Long-term maintenance plan | At least 10 years, reviewed at least every 3 years | 30 years, reviewed every 3 years, with building professionals unless opted out |
| Long-term maintenance fund | Required unless opted out by special resolution, reviewed yearly | Same |
| Audit of financial statements | Required unless opted out by special resolution | Same |
Meetings and votes
- AGM once every calendar year, no more than 15 months after the last one. The first AGM is within 6 months of the unit plan's deposit or the first sale's settlement, whichever is first.
- An EGM must be held if at least 25% of unit owners ask.
- Quorum: at least 25% of eligible voters, and at least 2 members unless there is only one owner. Owners with levies owing do not count.
- Each principal unit has one vote. An ordinary resolution needs more than 50% of votes; a special resolution needs 75%. A poll weights votes by ownership interest.
- Since 9 December 2022 owners can attend online, and since 9 May 2024 they can vote electronically before or during a meeting.
- An owner with unpaid levies cannot vote.
Buying a unit title
The seller must give a pre-contract disclosure statement before the buyer signs, and a pre-settlement disclosure statement at least 5 working days before settlement. Since the 2022 amendments, a buyer can delay settlement or, in some cases, cancel when a statement is late, missing, incomplete or inaccurate. MBIE: "Previously there were no statutory consequences for failing to provide complete and accurate pre-contract disclosure."
Disputes
MBIE suggests starting with self-resolution: talk to the other parties, check the rules, and ask for the issue to go on a general meeting agenda. Then the Tenancy Tribunal, by mediation or a hearing, for claims up to $100,000 (it was $50,000 before 2022). From 1 July 2026 mediation costs $256 and a hearing $512. Larger claims go to the District Court or the High Court.
Read from MBIE's Unit Title Services pages, guides and forms (the dates are in the sources below). The government's legislation site could not be opened when we checked on 31 October 2026, so the section numbers here are the ones MBIE names.
Common questions
What is a unit title? +
A form of ownership where you own your unit (a principal unit, plus any accessory units such as a carpark) and share the common property with the other owners through the body corporate. The unit plan held by LINZ records the boundaries.
What is the Unit Titles Act 2010? +
New Zealand's law for unit title developments, with the Unit Titles Regulations 2011. It sets how the body corporate runs, what it must keep and disclose, and how disputes are resolved. MBIE's Unit Title Services is the regulator.
What changed in the Unit Titles Act in 2022? +
The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act became law on 9 May 2022. It added more disclosure for buyers, rules for body corporate managers and committees, longer maintenance plans for large developments, remote attendance and electronic voting, a higher Tribunal limit and MBIE's powers as regulator. The last stage started on 9 May 2024.
What is a body corporate in New Zealand? +
All the unit owners in a unit title development. A buyer becomes a member automatically. It looks after the common property, sets levies, insures the property and holds meetings.
Does a small body corporate need a manager? +
No. Under 10 units a manager is optional. With 10 or more principal units a manager is required unless the body corporate opts out by special resolution.
What is the difference between ownership interest and utility interest? +
Ownership interest sets your share of the common property and is set by a registered valuer. Utility interest sets your share of body corporate costs and, by default, equals the ownership interest.
What is a special resolution in a body corporate? +
A resolution that needs 75% of votes. MBIE's example: with 10 units and 7 owners voting, a special resolution needs at least 6 votes for, and an ordinary resolution at least 4.
How often must a body corporate hold an AGM? +
Once every calendar year, no more than 15 months after the previous AGM.
Who resolves unit title disputes? +
The Tenancy Tribunal, for claims up to $100,000. The District Court hears claims from $100,000 to $350,000 and the High Court larger claims and land title disputes.
What must a seller give a buyer? +
A pre-contract disclosure statement before the agreement is signed, and a pre-settlement disclosure statement at least 5 working days before settlement. MBIE publishes templates for both.
Who regulates unit titles in New Zealand? +
MBIE's Unit Title Services. Since the 2022 amendments it can request documents, issue improvement notices and apply for penalties of $1,500 to $5,000 for intentional breaches, among other tools.
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