Statutory Framework

The Unit Titles Act 2010

An in-depth guide to the statutory provisions of the Unit Titles Act 2010, the Section 147 pre-contract disclosure systems, and the 2022/2023 amendment governance rules.

Vett a Unit Title Contract

Section 39 Interest Variations

Under Section 39, the body corporate can vary the utility interest ratios away from default ownership interest ratios via special resolution.

The Outgoings Impact: This allows committees to allocate a higher percentage of shared service costs (like lift operations or water usage) to specific units. We review the registered interests to prevent outgoings surprises.

The Unit Titles Amendment Act 2022

The **Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022** introduced major governance and disclosure reforms. Rolled out in phases between **May 2023 and March 2024**, these amendments aim to protect buyers and professionalize committee administration.

**Governance Reforms**: The amendments introduced a strict Code of Conduct for committee members, a mandatory conflict of interest register, and clearer rules regarding proxy voting. Committees must also maintain detailed meeting minutes, available to all owners.

**Professional Managers**: For developments with 10 or more principal units, hiring a professional **Body Corporate Manager** is now required (unless owners vote to opt-out by special resolution). The manager must act in good faith and hold professional indemnity insurance.

Key Amendment Objectives:

**Buyer Protection**: Expanding the disclosure requirements for sellers.
**Committee Code of Conduct**: Imposing standards of care and disclosure of conflicts.
**Professional Oversight**: Regulating professional body corporate managers.
**30-Year LTMP**: Mandating comprehensive long-term maintenance plans.

Unit Titles Act Reform Scorecard: Pre- vs. Post-Amendment

Feature

Pre-Amendment Rules

Post-Amendment Rules (Current 2024+)

Seller Disclosures

Basic PCDS. Minor penalties for omission.

**Expanded PCDS/PSDS**. Detailed litigation, committee minutes, and insurance disclosures required.

Manager Regulation

Unregulated. No standard qualifications required.

**Regulated**. Mandatory Code of Conduct, conflict interest registers, and professional audits.

LTMP Scope

10-year plans (often underfunded).

**Mandatory 30-Year Plan** for large developments (10+ units), reviewed every 3 years.

Buyer Remedies

Cancellation rights only for complete failure to provide PCDS.

**Cancellation or Deferral**. Settlement deferred if PSDS is delayed or incomplete.

Ownership Interest vs. Utility Interest Matrix

Annual body corporate levies are allocated across units using two statutory interest ratios calculated by a registered valuer:

Interest Category	Statutory Definition & Calculation Method	Levy Allocation Purpose
Ownership Interest	Based on the relative capital value of your unit compared to the total value of all units at registration.	Capital works, long-term maintenance, and voting shares.
Utility Interest (Default)	Set to match the Ownership Interest ratio unless varied by the body corporate.	Daily operational costs (power, insurance, water).
Utility Interest (Varied)	Varying the ratio under Section 39 to align levies with actual usage of services (e.g. lift costs paid only by upper units).	Targeted service outgoings allocation.

Long-Term Maintenance Plans (LTMP) & Funding

The Funding Mandate

Under the Act, every body corporate must establish a **Long-Term Maintenance Plan (LTMP)**. The plan must cover a 10-year period (expanded to 30 years for large developments under the 2022 amendments) and outline planned capital repairs (e.g., roof replacements, repainting, lift upgrades).

**The LTMF Reserve**: The body corporate must establish a **Long-Term Maintenance Fund (LTMF)** to fund these works, unless owners vote to opt-out. If a plan is underfunded, owners face sudden, massive special levies when works fall due.

**Review Cycles**: Large developments (10+ units) must review their LTMPs every 3 years, incorporating professional building quantity surveyor reports.

LTMP Vetting Checklist:

**Vett Plan Horizon**: Check if a 30-year LTMP is active for large complexes.
**Check Fund Balances**: Confirm the cash in the LTMF matches the planned works.
**Verify Opt-Out Status**: Ensure the committee hasn't opted out of LTMF funding.
**Audit Review Dates**: Check that the LTMP has been professionally updated within 3 years.

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Protect your unit title transaction. Vett Section 39 interest ratios, audit 30-year LTMPs, check 2022 amendment compliance, and enforce statutory disclosure rights. Request a quote today.

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Frequently Asked Questions

Ownership interest is based on the capital value of your unit and determines your voting rights and your share of capital repair costs. Utility interest determines your share of daily operational expenses (power, insurance). By default, they are equal, but utility interests can be varied to align with actual services usage.

Under the Unit Titles Act, the seller must provide the Pre-Settlement Disclosure Statement (PSDS) to the buyer at least **5 working days before** settlement day. If the seller fails to meet this deadline, the buyer can defer settlement until 5 working days after a compliant PSDS is provided, or cancel the contract entirely by giving notice.

No. Under the Unit Titles Act, committee members are not personally liable for any act or omission done in good faith while performing their duties. However, the 2022 amendments introduced a strict Code of Conduct and mandatory conflict of interest registers—members who fail to act in good faith or hide conflicts can be held accountable.

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