Love them or loath them, body corporate rules are an important part of community living. Without them there is no guiding principals or common values. The rules help to bridge the gaps in the Unit Titles Act, whilst creating a fair basis for Unit Owners to govern and administer their communities.
Body Corporate Rules – do yours need changing?
All prior rules registered under the Unit Titles Act 1972 became void on 31 October 2012 and the default rules listed under Schedule One of the Unit Titles Act 2010 applied. The rules are few and very basic, relating to noise, damage, parking, peaceful enjoyment, and rubbish disposal. If you have the default provision it is probably time to consider if your rules need changing.
Many bodies corporate, in particular medium and large buildings, found the default rules inadequate to meet the needs of their body corporate community, and registered new rules under the 2010 Act. A body corporate that has not yet registered new rules, will find their old rules invalid and unenforceable.
Over time a body corporate will need to make adjustments rules to meet the changing needs of their community. All rules must relate to the enjoyment, management, or governance of the body corporate and they must be consistent with the Unit Titles Act. The rules should be both practical and reasonable in nature and help to create a collaboration, acceptance and conformity. In summary the body corporate rules must be as much as is needed but as little as possible.
Changing your body corporate rules
A well written set of body corporate rules are a valuable asset. Potential purchasers and tenants will use these to decide if they wish to become a part of your body corporate’s community. When the inevitable neighbourly dispute arises, the rules will be used to provide clarity and guidance to resolve the matter.
It is imperative to detail the intention of each rule clearly and correctly, making sure only rules which are lawful and able to be enforced are included. Tempting as it is to include rules that are subjective in nature, the body corporate may find these difficult to uphold and costly to defend should a unit owner challenge them in the Tribunal. Therefore it is always worthwhile having any amendments reviewed by a specialist in Unit Title law to avoid any potential pitfalls relating to interpretation, legality and enforcement.
Five tips to consider before changing your rules
- Is the rule necessary? can the matter be dealt with without adding extra rules and obligations?
- Does it restrict a Unit Owners’ lawful right to use their unit property without interference from the body corporate
- Will it benefit and protect the rights of each Unit Owner equally?
- Are the proposed rules consistent with the Unit Titles Act?
- Is there an element of subjectivity that the body corporate may struggle to enforce if challenged?
- Has the proposed clause been drafted with clear intention, or can the proposed rule be interpreted multiple ways?
Once the proposed rules have been drafted, they need to be circulated to all Unit Owners and approved at a general meeting. The registration form must be signed, and the new rules registered with Land Information New Zealand to be legally binding and take effect.
Considering changing your rules and need some help. Talk to us at Everything Body Corporate to find out more
