Unit titles are a type of property commonly seen in apartment or multi-unit developments. They are subject to the Unit Titles Act 2010 and are governed by a Body Corporate comprised of each unit owner. On the sale of a unit title property, the vendor must provide the purchaser with certain information about the unit and the development.
The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 (Amendment Act) came into effect on 9 May 2023 and introduced changes that:
There are two types of disclosure to purchasers that continue to be relevant under the Amendment Act:
Prior to the Amendment Act, the Pre-Contract Disclosure Statement information was often unhelpful for potential purchasers. The most important information was provided in the Pre-Settlement Disclosure Statement. By then the purchaser is usually already unconditionally bound to complete the purchase of the property.
The information provided initially in the Pre-Contract Disclosure Statement is now far more expansive and includes:
Existing requirements to disclose certain information have also been widened. For instance, disclosure of weathertightness issues only previously applied to claims under the Weathertight Homes Tribunal or other civil proceedings. Now, purchasers must be made aware of any known weathertightness issues that have not been fixed, as well as any weathertightness issues that have been fixed, but were not subject to a claim.
The purchaser may now elect to delay or cancel settlement under certain circumstances where the Pre-Contract Disclosure Statement and/or Pre-Settlement Disclosure Statement is incomplete, incorrect or has not been provided. Previously, the purchaser could only cancel (or delay settlement of) an agreement for sale and purchase if disclosure was not provided by the vendor within the required timeframe.
The Amendment Act has brought in a number of changes and if you need assistance with your unit title sale or purchase please do not hesitate to contact Ricki Allan, Solicitor (DDI 03 3438585 / email@example.com) or Chris Egden, Principal (DDI 03 3438584 / firstname.lastname@example.org) for assistance.