September 19th, 2024
Housing Minister Chris Bishop announced further legal reforms aimed at bolstering protections for apartment owners and potential buyers in New Zealand, according to a government media release Thursday.
These changes, part of the Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act, are designed to enhance transparency and governance in the housing sector.
Driving the news: The Act, which has seen previous amendments in December 2022 and May 2023, is set to introduce its latest changes on 9 May 2024. These reforms are a part of the government's broader strategy to encourage homeownership by increasing buyer confidence in the apartment market.
The big picture: Minister Bishop highlighted the government's commitment to supporting New Zealanders' aspirations for homeownership. He noted that the Act's update is a critical measure to achieve this end, promising more robust protections for those purchasing unit title properties such as apartments.
Details: The forthcoming changes include:
Strengthening the long-term maintenance regime.
Clarifying contracts of service with body corporate managers.
Introducing new powers for the regulatory body, MBIE, alongside new regulations on:
Required information for MBIE upon request.
Electronic voting rules and procedures.
Clarifications on proxy voting and pre-purchase disclosures for off-the-plan units.
What they're saying: Minister Bishop credited Nicola Willis for initiating the Act in Opposition, emphasising its role in providing greater transparency and improved governance through bodies corporate.
"Apartments have traditionally been good starter homes for first home buyers who want to get onto the property ladder," Bishop said, underscoring the importance of the changes.
Zoom in: These legislative adjustments aim to ensure that prospective buyers are well-informed through a comprehensive disclosure regime. Bishop also assured that the policy decisions were made with the smallest possible impact on compliance costs, taking into account the capacity and capabilities of bodies corporate.
Between the lines: The update to the Unit Titles Act represents a significant step towards safeguarding the interests of apartment owners and buyers in New Zealand, offering them a more secure path to homeownership.