What is a unit title property?
A unit title is a type of property ownership where you own a defined part of a building, such as an apartment, a unit, and share ownership in common areas such as lifts, lobbies or driveways with other owners. It is different from buying a freehold property – the combination of individual and shared ownership of land and buildings means a different set of rights and responsibilities than free-standing fee simple house and land ownership. There are many extra considerations to make.
Pre-Contract Disclosure Statement
Before you purchase a unit title property or enter an unconditional Agreement for Sale and Purchase, you should be provided with a pre-contract disclosure statement (also known as a PCDS). The PCDS has information relating to the ownership such as:
- The annual body corporate levy;
- Planned maintenance;
- Bank accounts of the body corporate; and
- Any weathertightness claims the unit has been involved in.
Body Corporate Levies & Rules
When you purchase a unit title property, you become a member of the body corporate. The body corporate owns all the ‘common property’ which includes hallways, stairs, shared gardens, lifts, gym facilities etc.
Being a unit title owner and body corporate member means there are levies that you will need to pay annually. This may cover items at the development which includes:
- Insurance;
- Repair and maintenance;
- Management;
- Leasehold costs (if any);
- Stairs, garden, elevator, smoke alarm maintenance; and
- All matters relating to common property.
Body corporate rules apply to things such as noise, pets, rubbish disposal and use of common areas. These rules will be recorded in a constitution, specific to the property. Upon purchasing a Unit Title, you are confirming that you will follow the rules and constitution of the body corporate.
We suggest you find out all levies and rules will apply before you go ahead with your purchase. Any Unit Title and Body Corporate information and documents can be obtained via your Agent / Lawyer, and reviewed prior to confirming an Agreement for Sale and Purchase, and further in a purchaser’s due diligence clause which allows for a period for investigations into the property.