28 April 2008 Media Statement
Summary of proposed changes to Unit Titles Act 1972
The body corporate will own the common property, enabling it to act on behalf of all the unit owners for the good of
the development as a whole in terms of repair and maintenance. The definition of common property will be broadened to
include building elements that affect more than one unit. This will mean, for example, that if an apartment block has a
leaky roof it will be the body corporate’s responsibility to fix it, rather than the responsibility of the owner of the
top floor apartment.
Large, staged or mixed-use unit title developments will be able to be ‘layered’ – i.e., a unit within a unit title
development will be able to be developed as a subsidiary unit title development with its own body corporate. For
example, an apartment block, shopping centre and carpark building in a multi-use development could each have its own
subsidiary body corporate to manage the interests of each group of owners. Each subsidiary body corporate will be a
member of a head body corporate
Survey and title processes for surveyors and developers will be streamlined. For example, developers will be able to
comply with subdivision consents in stages rather than having to meet all conditions at the outset of the development.
The need for unanimous body corporate decisions will be removed. Decisions will be able to be based on 75 percent
agreement by those who vote at a body corporate meeting. It will also prevent holdouts, and will mean those who do not
vote will not be able to hold up the process. The reduction in the voting threshold will be supported by a robust
process to ensure those who disagree with the motion can apply to have their views heard through mediation, adjudication
or the courts.
Bodies corporate will be required to establish long-term maintenance plans to protect the long-term value of the
development. This will enable unit owners to plan for and pay a regular amount for maintenance over time.
Disputes will be able to be dealt with through mediation or adjudication in the Tenancy Tribunal in the first
instance, rather than solely through the courts, making resolution faster and cheaper.
Disclosure requirements will be introduced for purchasers, unit owners and the body corporate to enable them to make
informed choices. For example, developers will be required to provide information on the construction, systems and
infrastructure of buildings to the body corporate. A purchaser will be entitled to a list of information they can view
on request such as body corporate rules, audited accounts and maintenance plans.
ENDS