Auckland Law Firm – Quay Law Lawyers & Solicitors

Pre-contract disclosure statement – which the seller provides before entering into an agreement for sale and purchase.

The following information is prescribed for the purposes of section 146(2) of the Act (which requires a pre-contract disclosure statement to be in the prescribed form and to contain the prescribed information):
(a)     the amount of the contribution levied by the body corporate under section 121 of the Act in respect of the unit being sold; and

(b)     the period covered by such contribution; and

(c)     details of maintenance that the body corporate proposes to carry out on the unit title development in the year following the date of the disclosure statement, and how the body corporate proposes to meet the cost of that maintenance; and

(d)     the balance of every fund or bank account held or operated by the body corporate at the date of the last financial statement; and

(e)     whether the unit or the common property is, or has been, the subject of a claim under the Weathertight Homes Resolution Services Act 2006 or any other civil proceedings relating to water penetration of the buildings in the unit title development; and

(f)       an explanation of the following:

(i)                   unit title property ownership; and

(ii)                 unit plans; and

(iii)                ownership and utility interests; and

(iv)                body corporate operational rules; and

(v)                  the information required to be contained in a pre-settlement disclosure statement; and

(vi)                the information required to be contained in an additional disclosure statement; and

(vii)               computer registers; and

(viii)             the land information memorandum issued under section 44A of the Local Government Official Information and Meetings Act 1987; and

(ix)                easements and covenants; and

(g)     how to obtain further information about the matters referred to in paragraph (f); and

(h)     an estimate of the cost of providing an additional disclosure statement.

Pre-settlement disclosure statement – which the seller provides after entering the agreement for sale and purchase but before settlement of the sale.

The following information is prescribed for the purposes of section 147(3)(a) of the Act (which requires a pre-settlement disclosure statement to contain the prescribed information):

(a)     the unit number; and

(b)     the body corporate number; and

(c)     the amount of the contribution levied by the body corporate under section 121 of the Act in respect of the unit being sold; and

(d)     the period covered by such contribution; and

(e)     the manner of payment of the levy; and

(f)       the date on or before which payment of the levy is due; and

(g)     whether a levy, or part of a levy, due to the body corporate is unpaid and, if so, the amount of the unpaid levy; and

(h)     whether legal proceedings have been instituted in relation to any unpaid levy; and

(i)       whether any metered charges due to the body corporate are unpaid and, if so, the amount of unpaid metered charges; and

(j)       whether any costs relating to repairs to building elements or infrastructure contained in the unit are unpaid and, if so, the amount of unpaid costs; and

(k)     the rate at which interest is accruing on any money owing to the body corporate by the seller; and

(l)       whether there are any proceedings pending against the body corporate in any court or tribunal; and

(m)   whether there have been any changes to the body corporate operational rules since—
                                                               i.      the additional disclosure statement, if one has been    provided; or

                                                              ii.      (ii) the pre-contract disclosure statement.

Additional disclosure – which the seller provides on request of the buyer.

Regulations will prescribe the information that must be provided in each disclosure statement. These regulations are currently being developed.

The following information is prescribed for the purposes of section 148(4) of the Act (which requires an additional disclosure statement to contain the prescribed information):

(a)     the contact details for the body corporate and body corporate committee (if any); and

(b)     the balance of every fund or bank account held or operated by the body corporate at the date of the last financial statement; and

(c)     amounts due under invoices to be paid by the body corporate at the date the additional disclosure statement is requested; and

(d)     details of regular expenses that are incurred at least once a year; and

(e)     amounts owed to the body corporate at the date the additional disclosure statement is requested; and

(f)       the following details of every current insurance policy held by the body corporate:

                                                               i.      the name of the insurer; and
                                                              ii.      the type of policy; and
                                                            iii.      the amount of the current premium; and
                                                             iv.      (the amount of any excess payable under the policy; and

(g)     the following details of every current contract entered into by the body corporate:

                                                               i.      the names of the parties; and
                                                              ii.      the goods or services to be provided under the contract; and
                                                            iii.      the price at which the goods or services are to be provided; and
                                                             iv.      the term of the contract; and

(h)     information about every lease to which the base land is subject; and

(i)       the text of motions voted on at the last general meeting and whether each motion was passed or not; and

(j)       whether the body corporate’s operational rules are different from the prescribed body corporate operational rules, and if so, what the differences are; and

(k)     a summary of the long-term maintenance plan, including—

                                                               i.      details of maintenance to be carried out; and
                                                              ii.      details of maintenance carried out in the last year; and
                                                            iii.      whether there is a long-term maintenance fund; and
                                                             iv.      if there is a long-term maintenance fund,—

1. the amount determined by the body corporate that has been, or will be, levied during the term of the long-term maintenance plan to maintain the fund; and
2. whether the current balance of the fund is projected to be sufficient to meet the body corporate’s obligations under the plan.