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Body corporate repairs - what do I have to pay for?

Tuesday, April 26, 2016

  

APIA Ask An ExpertWe own a unit on a fee simple cross lease title.  There are over 20 units in two blocks with an operating body corporate (covering common area, insurance and water bill).  Back in March another unit suffered damage to its roof as well as sustained consequential damages to the ceiling and internal walls.  The  insurance claim lodged by the body corporate had been unsuccessful so the manager is now seeking approval from all owners to proceed with the repairs.  I am aware that I will have to pay my fair share of the roof repair but would I be liable for internal repairs in another unit? 

APIA Ask An Expert

 

The Memorandum of Lease registered on the cross lease title will record the obligations and requirements of all cross-lease members and sets out how decisions are made. The lease may include restrictions on members, such as:
  • Restrictions on alterations / erection of other buildings
  • Restrictions on leasing the flat
  • Restrictions as to the colours which may be used in repainting the flat
  • Restrictions on keeping pets.
 
In addition the lease may contain provisions that create obligations of the owners such as:
  • Maintaining the common areas
  • Maintenance obligations on their flat.
  • Property insurance - In some cases individual units and in others, all owners are required to insure under a single policy with each person meeting a proportionate share of the premium.
  • How costs and expenses are allocated which are not the responsibility of any particular owner (common drive way maintenance etc), are usually shared on a "land share" basis irrespective of the comparative value of the flats (ie 1/3 share in the land, you will pay 1/3 of those expenses).
 
You will need to carefully read the Memorandum of Lease to determine the extent of your liability in the situation described.  I recommend that you review the Lease with the assistance of your lawyer.

 

Disclaimer - The answer provided above is informational and should not be relied upon as legal advice.  For personalised legal advice, please feel free to contact Duncan King Law or your professional legal advisor directly.                

Kristine King 

Kristine is the director of Duncan King Law.   Born and bread in Auckland, Kristine's 'global education' began at high school when she received an International Scholarship to a prestigious boarding school in Japan.  A year spent in San Francisco working for a Title and Escrow company gave her a grounding in conveyancing practices, before she returned to New Zealand and joined the Wadsworth Ray team in 2004.  Since then she has practiced in a wide range of areas including General Commercial Law, Business Acquisitions and Divestments, Joint Ventures, Commercial Property, Projects and Developments, General Trust Law, Asset Management, and Residential Conveyancing.  

Click here to email Kristine.

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