Under the new Unit Titles Act 2010 (“UTA 2010”) existing Body Corporate Rules (“the existing rules”) will be revoked from 30 September 2012.
New default Body Corporate Operational Rules (“the default rules”) contained in Schedule 1 of the Unit Titles Regulations 2011 (“the Regulations”) will apply from 1 October 2012 UNLESS the Body Corporate resolves by special resolution to opt in to the new rules regime at an earlier date.
The default rules are as follows:
1. An owner or occupier of a unit must not—
(a) damage or deface the common property:
(b) leave rubbish or recycling material on the common property:
(c) create noise likely to interfere with the use or enjoyment of the unit title development by
other owners or occupiers:
(d) park on the common property unless the body corporate has designated it for car parking,
or the body corporate consents:
(e) interfere with the reasonable use or enjoyment of the common property by other owners or occupiers.
2. An owner or occupier of a unit must dispose of rubbish hygienically and tidily.
The default rules are not comprehensive. Accordingly, the Body Corporate may amend, revoke or add to the default rules at any time after the date that the unit plan is deposited by ordinary resolution at a body corporate general meeting.
The Body Corporate will have to analyse its existing rules against the default rules and the UTA 2010 to determine which existing rules it wishes to maintain and whether these rules conflict with the UTA 2010.
The Body Corporate should also analyse existing rules against authorities under the old Act so that any provisions of the existing rules that might be considered ultra vires (beyond the legal capacity of the body corporate to make rules) will not be carried over to the new rules. There are alternative ways of giving rights to or placing obligations on owners of unit titles other than pursuant to Body Corporate Operational Rules which avoid the ultra vires problem.
Most of the existing rules relating to governance such as rules in respect to meetings, voting and committees have been codified in the UTA 2010 and no longer need to be rules. The provisions of the UTA 2010 that relate to such matters take effect from the commencement date of the UTA 2010 being 20 June 2011 and will override existing rules from that date.
If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:
Fahra Manning
fmanning@farry.co.nz
09 379 0055 or
The information contained in this publication is intended as a guide only. It does not constitute legal advice and should not be relied upon as such. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.