Working Hard to Shape New Unit Titles Regulations

The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 (Amendment Act) became law on 9 May 2022, with most of the provisions commencing a year later on 9 May 2023.

SCA (NZ) played a key role from start to finish in relation to the Amendment Act, providing key input on behalf of members into the Act’s formulation, consulting with government regarding its rollout and holding extensive sessions and creating content to educate members on the subsequent impacts.

The key changes in the Amendment Act related to the disclosure regime, body corporate governance, body corporate managers, the long-term maintenance regime, dispute resolution and the regulator’s powers.

The last step of the Amendment Act’s implementation process, creating regulations, has been no different, with SCA (NZ) on the front foot representing the sector.

So what’s happening in this round of consultation?

As it currently stands, some provisions of the new Act will be coming into force on 9 May 2024 without an accompanying set of regulations to be followed to ensure their compliance and enforcement. This latest consultation builds a much needed bridge between the new Act, the government who will oversee it and key stakeholders such as SCA (NZ) in relation to the regulations that will govern the operation of the Act.

There are three key areas that the government is seeking to regulate before implementation on 9 May 2024, namely:

• Information requests by the regulator.

• Electronic voting and remote attendance.

• Legal costs in the tribunal.

• Other regulations, including proxy voting and presettlement disclosure statements for off-the-plan contracts.

On each of the topics above, the consultation paper presented options. SCA (NZ) worked very hard to present a realistic and balanced overview of body corporate and strata management practices to guide the regulations to a workable solution.

In many cases, this involved advocating for options that were less onerous or prescriptive for bodies corporate and strata managers and retained the flexibility to undertake activities in the most effective and efficient manner.

Where to next?

SCA (NZ) would like to build on the relationships formed with government and other key stakeholders and associations to explore the next set of challenges to the strata industry. At the top of the list is moving beyond the new legislation in terms of minimum standards and professionalism for body corporate managers and pressing issues such as short-term letting.

Please visit the SCA (NZ) website’s advocacy section to read the submission in depth at

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