The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 became law on 9 May 2022.  The Unit Titles Amendment Regulations 2024 came into force on 9 May 2024.

These changes to the Act have strengthened governance arrangements in relation to a body corporate and provided greater protection to those buying or to those who own a Unit Title Property.

Some of the key changes contained in these amendments are set out below:

Long Term Maintenance Plan (LTMP) to support and establish the management of long-term maintenance funds

• All body corporates must have an LTMP covering at least 10 years. There is no longer an ability to pass a special resolution allowing a body corporate not to establish and maintain one.
• For large unit title developments (containing 10 or more principal units) the legislation now requires those large developments must establish an LTMP that covers 30 years from the date of the LTMP commencement or last review. Large developments must also hire a body corporate manager unless 75% of owners vote against it.

Remote Attendance at Meetings and Electronic Voting

• Unit owners and committee members can attend meetings by audio-visual link.
• Unit owners can now vote electronically either before or during a meeting. Body corporates are required to take reasonable steps to verify the identity of any person casting a vote electronically.

More Detailed Reporting

Vendors are now required to give more detailed information to prospective purchasers at the Pre-Contract Disclosure stage. Some of the new requirements include:

• Whether there are any weather-tightness issues (ongoing or previously remedied) not just whether a claim has been made under the Weathertightness Homes Resolution Services Act 2006.
• Whether there are any earthquake-prone issues.
• Financial statements and audit reports for the previous 3 years.
• Notices and minutes of the body corporate meetings for the previous 3 years.
• Disclosing whether the property has any significant defects including any remediation reports in the preceding 3 years.
• The name and details of the body corporate manager.
• For off-the-plan units, a summary of the draft finance budget and estimated ownership interests.

Utility Interests Set By Developer

• Utility interests set the share of the body corporate levy paid by each unit owner. The changes give the developer the ability to assign a single utility interest or multiple utility interests that relate to a particular service or amenity.  This will allow some interests to be assigned to specific units only.  For example, a private courtyard used by a particular unit, or a lift used by upstairs units.

How Do These Changes Affect You?

If you are buying or selling a Unit Title Property and have any concerns or questions about these changes, contact our knowledgeable team so we can advise on your specific situation.