A body corporate is automatically formed when a piece of land is developed with more than one unit or dwelling on it. The purpose of the body corporate is to look after the common areas – such things as lobbies, car-parks, corridors, roofs and exteriors – that sit outside the responsibility of individual unit owners. A body corporate also insures that the property, including individual dwellings, develops and enforces the rules for the development and develops a long-term maintenance plan for the common areas. Without such a mechanism, it would be unclear who was responsible for these common areas, and there would be no way of ensuring that they are properly managed and maintained.

Yes. A body corporate is legally required for every multi-unit development under the Unit Titles Act.

The owners of the individual apartments do. They elect a body corporate committee at their Annual General Meeting to manage the body corporate, which includes setting the annual budget and making and enforcing the rules. Individual owners can choose to put themselves up for election to the body corporate committee at the AGM if they wish to play a more active role in the running of the body corporate and the decisions that it makes on behalf of all owners

A body corporate appoints a manager each year at its AGM (in this case Crockers) to look after the day-to-day running of the development. Crockers’ website explains the workings of the body corporate in more detail www.crockers.co.nz

  • Fire Brigade Monitoring
  • Building Warrant of Fitness - Annual Issue
  • Building Warrant of Fitness - Monthly Inspections
  • Trust Account Management Fee
  • Insurance Premium for Main Building
  • Valuation Fee
  • Income Tax Return Preparation Fee
  • Administration / Secretarial Annual Fee
  • Cleaning Materials for Common Areas
  • Maintenance Contingency
  • Access Control Maintenance
  • Cleaning - Building Exterior and Windows
  • Cleaning - Common Areas
  • General Repairs and Maintenance for Common Areas
  • Life Maintenance
  • Rubbish Removal from Common Area
  • Water and  Waste for Common Areas 
  • Electricity for Common Areas
  • Long Tern Maintenance Fund 

Inevitably there will be some movement in body corporate charges as costs change over time.The purpose of establishing a long-term maintenance fund (which is required by law in multi-unit developments) is to anticipate some of the larger charges associated with home maintenance, and to provide for them gradually in order to avoid sudden, unforseen costs arising in any particular year.

Rates, electricity, water, telephone, Sky TV, personal contents insurance and internet use are examples of services that are not included in body corporate charges. These are all costs which are individual to each unit, and in each case the homeowner will have a direct supply agreement with the supplier of their choice. These costs will be similar to the costs payable when living in a stand-alone home.

Electricity useage should be lower in the apartments due to their compact nature, double glazing and the compliance with the latest insulation requirements when compared to a stand alone home.

No. Because Bloom is a developer rather than a retirement village operator, it has no enduring financial interest in the property once all the units have been sold. Ongoing management of the common areas passes to the body corporate, and individual owners are responsible for their own properties.

Each owner has a freehold unit title to their unit, and can sell it by whatever means they like. Any capital gain on sale belongs to them, and they receive the full proceeds from the sale (less any costs or commissions agreed with their sales agent).

This is quite different from the standard retirement village model, where buyers receive an occupation rights agreement but do not actually purchase their unit outright. Typically in retirement villages, the retirement village operator controls the sale process, and retains an agreed (usually significant) percentage of the proceeds from the sale.