Body Corporate Admistration
Owning a unit in multi-tenanted building gives the unit owner (unit title ownership, or strata title) a say in the running of the property. Each unit owner is automatically a member of the properties “Body Corporate”.
The Body Corporate is a legal entity and is made up of all the owners of the property. This entity is run like a committee with chairperson and members. Both regular meetings and annual general meetings need to be held. Decisions concerning financial matters and shared entities of the property are made by the body corporate committee.
All unit owners are automatically members of the body corporate
A body corporate is established at the commencement of the building and as new unit owners come on board. These unity owners automatically become members of the body corporate and are involved in the decision making of the building.
Certain information regarding the body corporate will be handed to you when you purchase a unit or express interest in purchasing a unit. https://www.settled.govt.nz/blog/what-is-a-body-corporate/
What powers and duties does the body corporate have.
While units are owned individually, certain areas of the building are shared or are common to the property and the development as a whole. The body corporate is established to manage and administer the shared interests of the building. Some of the duties include:
- Managing common property and building infrastructure, e.g. swimming pool, car park and other common areas
- Long term planning
- Administrative tasks like
- Maintaining a register of all unit owners
- Providing the correct documentation to new owners
- Financial administration
- Running meetings
Why use a body corporate administrator
An external body corporate manager does not have any decision-making powers. There are good reasons to use and independent and external party to fill that role.
Assigning administration task to unit holders may cause a conflict of interest. The “Body Corporate Administrator” is able to take an impartial view. Here are just some of those tasks.
- organising meetings
- distributing minutes
- dealing with suppliers
- keeping financial accounts
Legal compliance for residential buildings can be a minefield of complex and changing regulations and legal administration. For those that don’t have knowledge or experience running such an entity can be difficult.
Broad experience is essential to comply with these regulations.
At Metro NZ Properties we act as “Body Corporate Administrators” for a large number of projects and have gathered a wealth of experience over time. With that experience we avoid pitfalls and ensure that all regulation are complied with.
Independence and efficiency
Using an external body corporate administrator ensures independence and prevents conflict of interest. One of the tasks is to run meetings. Individual unit owners may have different agendas or opinions. One of the required skills is to lead that team to make sound decisions fast and to aid in the implementation of those decisions.
Give us a call at Metro NZ Properties or contact us to discuss your requirements.