Body Corporate Rules - Do Yours Need Changing?
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 body corporate rules help to bridge the gaps in the Unit Titles Act, whilst creating a fair basis for body corporate members to govern and administer their communities.
Provisions in the Act
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 under Schedule One are few and very basic, relating to noise, damage, parking, peaceful enjoyment, and rubbish disposal.
Many bodies corporate, in particular medium and large buildings, found these rules inadequate to meet the needs of their building and community and registered new rules under the 2010 Act. For those bodies corporate who have not yet registered new rules, will find their old rules invalid and unenforceable.
Making amendments to Body Corporate Rules
Over time a body corporate will need to make additional rules to meet the changing needs of their community and building. All rules must relate to the enjoyment, management, or governance of the body corporate and they must be consistent with the Unit Titles Act. Body corporate 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.
A well written set of rules are a valuable asset. Potential purchasers and tenants will use the rules to decide if they wish to become a part of your body corporate’s community. When the inevitable neighbourly dispute arises, the body corporate rules will be used to provide clarity and guidance to resolve the matter.
Drafting rules
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 the rule 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.
Before committing to changing your body corporate rules – consider.
If the rule is really necessary? can the matter be dealt with without adding extra rules?
Does it restrict a unit owners' lawful right to use their unit without interference?
Will it benefit and protect the rights of each member equally?
Are the proposed rules consistent with the Act?
Is there an element of subjectivity that body corporate may struggle to enforce if challenged?
Has it been drafted with clear intention, or can the rule be interpreted multiple ways?
Once the proposed rules have been drafted, they need to be circulated to all owners and approved at a general meeting. The registration form must be signed, and the new rules registered with Land Information New Zealand to take effect and be valid.
Got a question about body corporate rules?
Contact us at Everything Body Corporate to find out more.
M: 021 424843 // E: info@ebcl.co.nz
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