Summary of the disclosure statement process

The owner of a unit title must give the buyer 2 types of disclosure statements when selling the property. These give more information to the buyer about the unit title:

1. A pre-contract disclosure statement (PCDS). This is given to the buyer before they sign the sale and purchase agreement.
2. A pre-settlement disclosure statement (PSDS). This must be given to the buyer at least 5 working days before settlement. (Working days excludes 25 December to 2 January, weekends and public holidays.)

If the owner does not provide these disclosure statements or they are late, incomplete or inaccurate, the buyer may be able to delay settlement or cancel the sale and purchase agreement.

Get independent legal advice if you are considering cancelling or delaying settlement.

Pre-contract disclosure statement (PCDS)

The owner of a unit title must give a PCDS to the buyer, before the buyer signs the sale and purchase agreement. The information that needs to be included depends on whether the unit is existing or off-the-plans.

Pre-contract disclosure statement templates

PCDS checklist for existing units

A PCDS for the sale of an existing unit must include the following (if it is available):

1. Financial information

• The body corporate fees for the unit for the current financial year.
• The balance of every fund or bank account held or operated by or on behalf of the body corporate at the date of the last financial statement.
• Financial statements and any audit reports for the previous 3 years. (If an audit report is unavailable for this time frame, then provide the most recent 3-year audit report and a statement of the years for that unaudited time period.)
• Confirmation of the 12-month period that is the financial year.

2. Maintenance, weather tightness and related information

• A copy of the long-term maintenance plan.
• The next review date for the long-term maintenance plan.
• Details of any maintenance (whether in the long-term maintenance plan or not) that the body corporate proposes to carry out on the unit title development in the coming year and how these will be paid for.
• Any proposed works under the long-term maintenance planned to be carried out or begin within the next 3 years, as well as the estimated costs.
• If the body corporate or body corporate committee knows that any part of the unit title development has any of the following:
  • weathertightness issues, whether the weathertightness issues have been remedied or not, and whether or not a claim has been made under the Weathertight Homes Resolution Services Act 2006, or
  • earthquake-prone issues, or
  • any other significant defects in the land or the unit title development that may require remediation.
• Any remediation reports commissioned by the body corporate within the previous 3 years.

3. Governance information

• Notices and minutes of general meetings of the body corporate and the body corporate committee for the last 3 years:
  • including all supporting documentation, but
  • excluding any information that may be removed.
• Information in the minutes may be removed if:
  • disclosing the information would be a breach of the Privacy Act 2020 or any other law, or
  • the information is subject to legal professional privilege, or
  • confidentiality of the information must be protected on grounds of commercial sensitivity.
• The name and contact details of the body corporate manager or managers.
• A summary of the insurance cover the body corporate maintains for the unit title development, including:
  • the insurer’s name and contact details
  • the type and amount of cover, the annual amount payable for it, and the excess payable on any claim under it
  • any specific exclusions from cover
  • a statement of where and how the insurance policy can be viewed. 
• If the body corporate is involved in any legal proceedings and details of the proceedings.

4. Explanations

• An explanation of the following:
  • unit title property ownership
  • unit plans
  • ownership and utility interests (the percentage of body corporate fees that must be paid for the unit)
  • body corporate operational rules
  • the information required in a pre-settlement disclosure statement
  • records of title (including the supplementary record sheet)
  • land information memoranda (issued under section 44A of the Local Government Official Information and Meetings Act 1987)
  • easements and covenants.

Land information memoranda — Local Government Official Information and Meetings Act 1987 — Legislation NZ(external link)

PCDS checklist for off-the-plans units

A PCDS for the sale of an off-the-plans unit must include the following (if it is available):

• A summary of the draft financial budget for the unit title development, including an estimate of the cost of operating the body corporate in an average 12-month time frame.
• An estimate of the proposed ownership interest for the unit based on the sales value. (If the sales value is not available, an estimate based on sales value can be used).
• An estimate of the proposed utility interest for the unit. (The percentage of body corporate fees that must be paid for the unit).
• The draft of the body corporate operational rules.
• Any service contracts that have been or are proposed to be entered into that will continue after the unit purchase is settled, including:
  • any contracts for utilities (for example, telecommunications, water, or electricity)
  • any contract appointing a body corporate manager.
• An explanation of the following:
  • unit title property ownership
  • unit plans
  • ownership and utility interests
  • body corporate operational rules
  • the information required to be contained in a pre-settlement disclosure statement
  • records of title
  • land information memoranda issued under section 44A of the Local Government Official Information and Meetings Act 1987
  • easements and covenants.

Templates for PCDS

You can use the following templates to create a PCDS for both existing units and off-the-plans units.

Pre-contract disclosure statement — existing units [DOCX, 42 KB]

Pre-contract disclosure statement — off-the-plans [DOCX, 50 KB]