PMG Body Corporate consults to Government on improvements to legislation
10 April 2017
For many people their wealth is almost entirely invested in property. These property investments provide income, hopefully future capital gains and long term security. For property owners who are part of a collective, such as a residential apartment block, the performance of the body corporate can have a very positive, or conversely negative, impact on the value of their investment.
PMG established a dedicated Body Corporate arm in 2015, because after 20 years of commercial property consulting we could see body corporates across the region, and nationally, were in dire need of help.
It seems PMG is not alone in this observation, as over the past year there has been an upsurge of interest from the Government in the Unit Titles Act (UTA) 2010 and Unit Titles Regulations 2011. PMG’s Body Corporate Director, Tony Brindle has been privileged to be part of working group discussions with the Hon Nikki Kaye, MP for Auckland Central, who is reviewing the many urgent cases and issues associated with current legislation.
Dysfunction at a body corporate level is not good for anyone. It’s stressful and inefficient, and at worst, it can be detrimental to the value of your asset.
Through the process of consultation some of the recommended improvements to the current legislation include:
• The need for a documented Register of Body Corporate Administration, which would include the Chairperson and Committees of UTA properties.
• Proxy voting controlling the outcome of issues.
• The operation of the current disclosure regime for purchasers of units.
• Better reporting on and transparency of issues and money transactions.
• The need for better education within all facets of body corporates.
• A provision in the Act to deal with conflicts of interest.
• Regulation of professional body corporate administration companies.
The working group is currently preparing a submission on the Review of the Unit Titles Act 2010 – Discussion Document December 2016, so the move towards tighter legislation is on the horizon. As specialists in body corporate administration, we fully support any changes that help ensure effective, fair management and that protects our client’s assets.
About Property Managers Group Body Corporate
“Our purpose is to lessen your stress levels and heighten your investment potential. We take professional control of your collective body corporate property and build a more stable high functioning body corporate community.”
Director Body Corporate