We are four months into the new Act and it has been a very interesting four months indeed. Our team has worked with our clients to ensure that they understand the new Act and are acting in compliance with it, and there has been some interesting feedback around the disclosure regime.
A buyer whom Oxygen referred to a real estate professional in Wellington had an interesting experience with a Body Corporate that is currently not managed by Oxygen or working towards compliance. Heres the story
A buyer who was (and still is) keen to purchase in a pet friendly Body Corporate walked away from a sale and purchase of an apartment in Wellington a few weeks ago. The property had everything that the buyer was looking for including the ability to have a pet but because the Body Corporate was not run properly, the buyer walked away looking for a better run one. They said We are not able to proceed with this apartment, unfortunately. We really liked it but the Body Corporate was unable to provide meaningful financials, there were arrears looming and no sinking fund. It was all too uncertain.
This scenario will not be unusual for bodies Corporate who are not taking their new obligations under the Unit Titles Act 2010 and its Regulations seriously. The new Act does give Body Corporates an opportunity to improve their governance, financial management and maintenance planning. Well run Body Corporates who already had good structures in place and are working towards further compliance will benefit as buyers ask for information that they will expect to be available and furnished to them under the new disclosure regimes.