What is a disclosure statement?
A disclosure statement is required by law when an unit in a Unit Title property is being sold. There are three types of Disclosure Statement:
Pre-Contract Disclosure Statement
This is required to be provided to potential purchasers of the property. It discloses such items as to the amount of the BC Levy for the unit and the period that the levy covers. It also advises if any maintenance is being proposed for the property, the status of the BC's bank accounts and if any claims are in train for weather tightness issues or legal proceedings.
Additional Disclosure Statement
This can be requested by potential purchasers and discloses more in depth details of the BC accounts and what contracts a BC has in place.
Pre-Settlement Disclosure Statement
This is usually requested by the lawyer acting for someone selling the property once a sale and purchase contract is in place. It discloses how much if any the unit is in arrears on its BC Levy obligations, along with other more specific information about the unit itself. It is the document that the lawyers acting for the vendor and purchaser use to finalize which party pays what portion of the current levy.
To request a Disclosure Statement please click on the link below.
What is a body corporate?
A Body Corporate is comprised of the owners of principal units of a multi-unit building or multiple townhouse development. Strictly Body Corporate Limited is not a Body Corporate but rather a Body Corporate administration company. Bodies Corporate are known by a unique 6 digit number which is recorded with Land Information New Zealand and will be specified on the units Certificate of Title.
For more information as to what a body corporate is please click on the link below.
what is a body corporate levy?
A BC Levy is what the owners within a Body Corporate must pay to provide the necessary utilities and to meet maintenance costs and other costs associated with common areas within a multi-unit development.
What are the bc levies spent on?
Like any property, a Body Corporate incurs expenses during its life most of which pertain to common property of the BC. To pay these expenses the Body Corporate charges its owners Levies which are based on a Budget which must be approved at a general meeting of owners.
Items in a typical budget include the building insurance, common electricity and general maintenance. It can also include costs to maintain other facilities that the property may incorporate such as swimming pools or lifts.