Unit Titles Act 2010 - Summary of Changes Affecting Unit Plans

(a) Subsidiary and layered unit title developments are defined and described in ss 19 and 20.  For what these may look like, see examples in s 9(2) and examples 2 and 3 in Schedule 1 of the Act.

(b) A subsidiary unit title development is essentially a subdivision of a principal unit (and any associated accessory unit or units) into new units and common property. A layered unit title development is a grouping of a head unit title development and one or more subsidiary unit title developments.

(c) In the context of a layered development:

(i) the head unit title development is the development created by a subdivision of land (fee simple or leasehold – the first layer) where at least one principal unit is subdivided to create a subsidiary unit title development, and
(ii) a parent unit title development in relation to a particular subsidiary unit title development (second or subsequent layer) means the unit title development containing the principal unit that was subdivided to create the subsidiary unit title development

(see the definition of both terms in s 5 and the examples referred to in (a) above)

Note:    In a two layer development, the head and parent development will be one and the same.

(d)    While the head unit title development will never change in a layered development, irrespective of the number of subsidiary layers, there could be any number of parent unit title developments, depending on how many layers are created.
 

The subsidiary unit plan must:

(a) identify the principal unit being subdivided,

(b) specify the principal units, accessory units (if any) and common property that make up the subsidiary unit title development [s 21(1)(b)],

(c) show the relationship of the subsidiary development to all other unit developments in the layered development [s 21(1)(c)].

Note: The subsidiary unit plan will depict the new subsidiary units on the principal unit (and accessory unit if any). The relationship of the subsidiary development with each unit development in the layered development can be shown by diagram in the same manner as Examples 2 and 3 in Schedule 1 to the Act. The deposited plan reference numbers for the head and every parent and subsidiary unit development should be shown.

(d) be approved as to survey [s 32(2)(c)].

(a) Ownership and utility interests replace the unit entitlement under the 1972 Act.  The valuer’s certificate is no longer part of the unit plan as it will be lodged with the deposit dealing – see (h) below.

(b) Ownership interest is the interest assigned to principal and accessory units by a registered valuer based on a unit's relative capital value.  It is used to determine a range of things relating to a unit owner's property right in the development, such as their share of common property, their voting share when a poll is requested, and their contribution to any capital improvement fund [s 38].

(c) Utility interest is also assigned to principal and accessory units.  The utility interest is by default the same as the ownership interest unless shown otherwise on documents lodged with LINZ.  The utility interest is used to determine the extent of a unit owner's contribution for operational and maintenance expenses [s 39].

(d) This changes the regime under the 1972 Act, where all contributions were based on relative capital value, and no reassessment was permitted.

(e) All units (principal, accessory, proposed principal, and proposed accessory) must be assigned ownership and utility interests at the outset.  While they are the same unless stated otherwise, the developing owner can fix a different utility interest prior to the plan being deposited and the body corporate being created [s 39(2)].

(f) Both interests may be reassessed at any time, as long as three years has elapsed since the last reassessment, but reassessment is compulsory in the case of some redevelopments and for all unit plan cancellations [ss 41(3), 69(3)(b), and 177(7)].

(g) An FDU is also assigned a proposed ownership interest (which is the sum of the ownership interests of the proposed principal and accessory units within the FDU) and a utility interest must be assigned if it is used as a place of residence or business.

(h) Certificates by a registered valuer showing ownership interests, and if necessary utility interests, in the prescribed form (see schedule 2 of the Unit Title Regulations 2011) are to be lodged with the deposit dealing as they are to be recorded on the supplementary record sheet.

(a) Redevelopment has been expanded to include the transfer of a unit or part into the common property [s 69(3)(b)]. This was previously a stand alone process outside the range of a redevelopment.

(b) There is a new redevelopment process requiring amendment to unit plan [ss 65   67], also referred to as a simple redevelopment, for the adjustment of boundaries between units without increasing or reducing the number of units or involving the common property.  This process will require a new plan showing only the units affected by the amendment.  The new plan will be added to the existing plan set rather than as a replacement for it.  In this case, the body corporate will need to certify that the qualifying criteria set out in s 65(1) apply [s 65(4)].

(c) Redevelopments other than those covered by s65 will require a unit plan in substitution for the existing unit plan as was the case for all redevelopments under the 1972 Act.

The most significant change is to the territorial authority certification under the RMA. The PUD plan continues to be the plan of subdivision for the purposes of s 223 of the RMA but the certification required under s 224(c) of the RMA may now be given in relation to:

(a) either the PUD plan, or

(b) each stage and the complete unit plan [s 28].

The provisions dealing with the interaction between the Unit Titles Acts and the Public Works Act 1981 have been enhanced to enable the Registrar to deal better with the acquisition of unit titled land under the Public Works Act 1981 when that land is still in a unit.

Section 15 in the 2010 Act is broadly worded and is designed to allow the Registrar to give effect to the taking of land under the Public Works Act, whether the land is already common property, is in a unit, or is a mixture of both.

It is intended to reflect the case law (see Attorney-General v Body Corporate 68792 [2007] NZLR 671).

The ability of the body corporate and unit owner to deal with existing easements and land covenants affecting the base land, and to create and deal with new easements and land covenants over or in favour of common property and units, has been extended [ss 60-63].

Plan requirements for easements are:

(a) Existing easements, both subject and appurtenant, are to be recorded in a schedule to be included with the unit plan [rule 10.2.2 of the Rules for Cadastral Survey 2010].

(b) Existing subject easements are to be depicted spatially on the unit plan [rule 10.4.3 of the Rules for Cadastral Survey 2010].

(c) New easements are to be recorded in a schedule or, in the case of new easements required by a territorial authority, recorded in a memorandum [rule 10.2.1 of the Rules for Cadastral Survey 2010].

(d) New easements are to be depicted spatially on the unit plan [rule 10.4.3 of the Rules for Cadastral Survey 2010].

(a) Existing Landonline unit plan types, known as ‘survey purpose’, remain the same.

(b) There are three new Landonline survey purposes to cover new provisions under the 2010 Act.

(i) Subsidiary Proposed Unit Development – a plan of a proposed subsidiary unit title development to be developed in stages,
(ii) Subsidiary Standard Unit Plan – a subsidiary unit plan that shows the total subsidiary unit title development on one plan, and
(iii) Simple Redevelopment Unit Plan – a redevelopment plan under ss 65-67.

(c) A head unit title development of a layered unit title development is in effect a standard development until such time as one or more of the principal units are subdivided by a subsidiary development.  Therefore the head plan of a layered will be lodged as a Landonline ‘standard unit plan’.

(d) All unit plan survey purposes have the option of with, or without, a survey sheet.

(a) The 2010 Act does not specify how staged development and substituted plans are to be numbered, unlike the 1972 Act.  Plan numbering convention will be determined by LINZ.  At this stage it is proposed to continue with the plan numbering convention established by the 1972 Act and implemented by Landonline.

(b) A subsidiary proposed unit development plan and subsidiary standard unit plan will have a new plan number different from the parent unit development.

(c) A simple redevelopment unit plan [s 65-67] will have the same number as the existing unit development.

The body corporate must now maintain, repair, or renew all building elements and all infrastructure that relate to or serve more than 1 unit. [s 138]  This does not depend on the location of the unit boundaries.  Building elements and infrastructure have been defined for this purpose. [s 5].

The location of unit boundaries will still be important for some aspects of repair and maintenance therefore need to be carefully defined. 

Prior to the Rules for Cadastral Survey 2010 the default location of a unit boundary was the centre of a wall unless specified otherwise.  Under the 2010 Rules there is no default location for boundaries so a description of all permanent structure boundaries must be provided and the spatial relationship of the boundary to the permanent structure shown. [Rule 10.4.7].

All unit plans must comply with rules made under section 49 of the Cadastral Survey Act 2002. [s34].

The Rules for Cadastral Survey 2010 were written to be compatible with both the Unit Titles Act 1972 and the new Unit Titles Act 2010 so no changes to the Rules are required for the implementation of the new Unit Titles Act 2010.