Who Makes BC Rules And How Are They Changed?

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Body corporate rules help maintain order, prevent conflicts, and protect the interests of residents in a unit title complex. But who makes the rules and how can they be changed?

BC Rules and the Law

The Unit Titles Act 2010 is the law that covers all unit titles, and the Unit Titles Regulations 2011 support the Act. The regulations include default rules that apply to any unit title properties that have chosen not to set their own rules.

However, your body corporate can add to or change these rules to suit your property and requirements. Any proposed changes to the operational rules have to be voted on at an Annual General Meeting (AGM) or Extraordinary General Meeting (EGM).

For new developments, the Developer will most likely choose to establish the first rules to ensure that they are specific to the complex and suitable for all purchasers and future residents. The future owners can amend these rules if they wish.

Updated rules need to be lodged with Land Information New Zealand and fees will apply.

What Do Body Corporate Rules Typically Cover?

Body corporate operational rules for common areas typically cover the use of shared spaces, such as recreational facilities, parking areas and rubbish disposal. Rules for individual units may include rules around pet ownership, the appearance of units, restrictions on alterations to units and acceptable behaviour for owners, residents and guests.

How Are Body Corporate Rules Made and Changed?

Body corporate rules can be created or amended by the unit owners at the AGM or EGM. Any unit owner or the Body Corporate Committee can propose changes to the rules, but these proposed changes must be approved by the majority of unit owners.

Most changes to body corporate rules require a simple majority vote (at least 50 percent approval). However, certain changes, such as significant alterations to the common property or restrictions on the use of units, may require a special resolution, which requires at least 75 percent of the votes to pass.

Can The Body Corporate Committee Make Rule Changes?

The Body Corporate Committee is elected by the owners to manage day-to-day operations and can make minor decisions, but any changes to the rules must be approved by the full body of owners.

Read more: Who Makes the Decisions in A Body Corporate?

How Are Proposed Rule Changes Discussed?

Proposed changes to body corporate rules are discussed at General Meetings. Before the meeting, unit owners are notified of the proposed changes and given time to review them. At the meeting, owners can debate the proposed changes, suggest amendments, and vote on whether to adopt the new rules. Final new provisions of the Unit Titles (Body Corporate Governance and Other Matters) Amendment Act are now in effect including the ability for members to virtually attend meetings.

Read more: How Decisions Are Made in A Body Corporate

What Happens If Owners Disagree on Rule Changes?

If a proposed rule change does not meet the required majority, it will not be adopted. In some cases, disputes over rules can lead to legal action, especially if the rules are deemed to conflict with the Unit Titles Act 2010 or the development’s original unit title plan.

Why Are Body Corporate Rules Important?

Body Corporate rules are vital for maintaining order and fairness in multi-unit developments. They regulate the use of shared spaces, ensure the safety of the residents and their right to quiet enjoyment, and protect the value of the property. Having clear rules helps prevent conflicts between owners and ensures a smooth and well-managed living environment. Your Crockers Body Corporate Manager can guide your BC on the processes around enforcing and amending the rules for your body corporate.

Not a Crockers Body Corporate client yet? Get in touch with our friendly BC Business Development team at  09 968 3311 or email  bc@crockers.co.nz, and they'll be happy to help.