What information is required in an additional disclosure statement?
The additional disclosure statement contains more information about the unit title development and the operation of the body corporate. It must include: contact details of the body corporate and committee (if there is one)
When must the pre-settlement disclosure statement PDS be provided?
5th working day
The pre-settlement disclosure must be provided no later than the 5th working day before the settlement date. If it is not provided by this time, the buyer can either: delay settlement until the 5th working day after it is provided or.
Can you contract out of the Unit Titles Act?
It is not possible to contract out of the regime, and any provision in an Agreement for Sale and Purchase seeking to do so is of no effect (as the above agent learnt the hard way). The main area for agents to be aware of is the Pre-Contract Disclosure Statement.
What is a body corporate disclosure statement?
A body corporate disclosure statement is a legal document which outlines the levies and proposed works in the complex that you will be liable for, should you purchase the property. Annual contributions and levies are paid by each owner within the complex and contribute towards the joint expenses of the building.
What is a unit title NZ?
A unit title property means you own defined part of a building, such as an apartment, and share ownership in common areas – these are things like the lifts, lobbies or driveways.
What is Stratum in Freehold?
A stratum in freehold, also known as a unit title is typically seen when there are two or more apartment type developments on a lot. This means that instead of owning the dwelling and the land, the owners of a stratum in freehold will own the dwelling and possibly any adjacent area/courtyard that the dwelling may have.
When must the additional disclosure statement ads be provided?
within 5 working days
The purchaser must request an additional disclosure statement within 5 working days of signing the sale and purchase agreement or 10 or more working days before settlement date – whichever date is earlier.
Who signs pre contract disclosure statement?
Pre-Settlement Disclosure Statement The statement must be signed by the owner and the certificate by the body corporate. Like the old Section 36 certificate, Crockers is being asked to prepare these and sign the certificate ($320+GST).
Does a unit title have to have a body corporate?
When you purchase a unit, you automatically become a member of the body corporate. All unit owners in a unit title property make up the body corporate, and they must hold an AGM at least once a year to discuss body corporate matters and vote on decisions affecting the complex.
What does a body corp do?
The Body Corporate insurance covers damage and consequential damage to the building itself and all fixtures within the units. The insurance is for reinstatement of buildings but does not cover normal wear and tear, but it does cover legal liability on the common property.
Who prepares a disclosure statement?
A PDS is prepared by or on behalf of the issuer or seller of the financial product and must contain sufficient information so that a retail client may make an informed decision about whether to purchase a financial product: RG 168.36–RG 168.54.
How long does a disclosure statement last?
A disclosure statement, much like a certificate of currency, is really only valid for the day that’s its prepared. That’s because anything can happen at any time that may result in a levy being issued. For instance, the building may be flooded, or a tree fall on the roof, or suffer a major fire.
When do you need to disclose unit title?
Vendors must supply formal disclosures to buyers at three separate stages of a transaction: Before any sale and purchase agreement is signed. Before the settlement date. If additional disclosure is specifically requested by the buyer. These disclosure requirements only apply to unit title developments.
Is there a pre-contract disclosure statement for unit titles?
A pre-contract disclosure statement template for anyone trying to sell a unit in a unit title development (section 146, Unit Titles Act 2010). A blank turn-over disclosure statement template for an original developer turning over a unit titles development to a body corporate (section 156, Unit Titles Act 2010).
What do you need to know about a unit title?
The Unit Titles Act 2010 (“the Act”) sets out three different statements a seller must provide to a buyer at different stages in the sale and purchase transaction. The first disclosure statement is called a “pre-contract disclosure statement”.
How is the sale of a unit title different?
The sale and purchase of a unit title property is different from a standard freehold property because there are certain added disclosure obligations on the seller. These disclosures provide valuable information to purchasers.