Unit Titles Act 2010

  • This version was replaced on 18 December 2018 to make corrections to section 169(5)(d) and (e) under section 25(1)(iv) of the Legislation Act 2012.
126 Recovery of money expended for repairs and other work

(1)

This section applies where the body corporate does any repair, work, or act that it is required or authorised to do, by or under this Act, or by or under any other Act, but the repair, work, or act—

(a)

is substantially for the benefit of 1 unit only; or

(b)

is substantially for the benefit of some of the units only; or

(c)

benefits 1 or more of the units substantially more than it benefits the others or other of them.

(2)

Any expense incurred by the body corporate in doing the repair, work, or act is recoverable by it as a debt in any court of competent jurisdiction (less any amount already paid) in accordance with the following:

(a)

so far as the repair, work, or act benefits any unit by a distinct and ascertainable amount, the owner at the time when the expense was incurred and the owner at the time when the action is instituted are jointly and severally liable for the debt; or

(b)

so far as the amount of the debt is not met in accordance with the provisions of paragraph (a), it must be apportioned among the units that derive a substantial benefit from the repair, work, or act rateably according to the utility interest of those units, and in the case of each of those units, the owner at the time when the expense was incurred and the owner at the time when the action is instituted are jointly and severally liable for the amount apportioned to that unit.

(3)

Despite subsection (2)(b), if the court considers that it would be inequitable to apportion the amount of the debt in proportion to the utility interest of the unit owners referred to in that paragraph, it may apportion that amount in relation to those units in the shares as it thinks fit, having regard to the relative benefits to those units.

Compare: 1972 No 15 s 33