Body Corporate Administration
A Snapshot Picture
BCA Ltd. administers many Cross Lease throughout NZ.
The key difference with a Cross Lease is rather than a development being governed under the Unit Titles Act 2010, each development is governed by a Memorandum of Lease.
Every Memorandum of Lease can be different and it is critical that owners check the provisions prior to purchasing your cross lease title.
Cross lease properties will not have a body corporate number but will often be assigned a name, such as ‘Cross Lease Paradise’.
While a body corporate is legally required to have a long term maintenance fund, there is no such requirement for a Cross Lease property.
While this may, on the surface, seem very appealing, there is no specific mechanism to ensure that funds are built up for such long term projects such as reroofing and driveway work.
Another aspect to consider is that of insurance.
It is important to check your cross lease document to establish whether it is up to each individual owner or whether it is an owner majority decision.
The issue to consider is that if it is up to individual owners, then this means common elements such as driveway and stairways are not covered.
If there is a dispute or a levy recovery issue there is no statutory provision of recovery or a Tenancy Tribunal set up under the Unit Titles Act. We always suggest owners meet physically or virtually collectively as so many differences can be sorted out in a collaborative way.