Unit Title and Body Corporate ‘As Is Where Is’ Sales
Owning a unit in a body corporate, unit title complex has positives and negatives. Maintenance and communal facilities are generally well looked after but when it comes to accepting earthquake settlement and becoming uninsured, things can get a little tricky.
Dealing with Earthquake Repairs when you are part of a Body Corporate.
Unit title properties are governed by the Unit Titles Act 2010 (“the Act”). All unit owners in a unit titled development make up a Body Corporate. Body Corporates are all insured under one insurance policy. This makes dealing with EQC and the insurer a little easier than if all owners of a cross-lease building were individually insured with a swathe of different insurers. However, getting multiple body corporate owners to move in one direction once a cash-settlement has been made is another story! Some may want to repair, some may want to sell As Is, that’s when the issues arise
Over the years, Arete Property have encountered body Corporates at loggerheads with decisions;
1. The Body Corporate accepts a managed repair from the insurer?
2. Accept a cash settlement and repair as a body corporate (as per section 138 of the unit titles act 2010)?
3. Accept a cash settlement as sell ‘As Is Where Is’?
All 3 of these have their catches. The unit titles act 2010 states that the body corporate must have a principal insurance policy in place for the building. Accepting a cash settlement would mean that the building and the body corporate would be in breach of the unit title act.
An As Is Where Is Sale is a great idea when you want to move on to your next chapter
This is why it is good to have an ‘As Is Where Is’ sale lined up on acceptance of the cash settlement so the new owners take over the obligations of the body corporate.
Arete Property Can Purchase Your Unit Title Blocks
We have previously purchased unit title blocks in their entirety and alongside owners who wanted to remain part of the body corporate and repair the dwelling alongside us. So there is always an option, call us today to find out how we can help.
Make sure you get good advice
*We must stress that we are not lawyers and anyone considering their options as part of a body corporate should seek relevant legal advice.
Register for a Free Appraisal
If you are looking for an As Is sale option, we are happy to appraise and offer advice based on our past dealings with body corporates.