Emma had been watching apartments in Hobsonville Point for months. When a new two-bedroom came up she put in an offer the same day and it was accepted within 48 hours. She didn't want to lose it by asking too many questions. She settled six weeks later. Two months after that, the body corporate voted a $35,000 special levy for lift replacement — a cost that had been known about for years but wasn't in the long-term maintenance fund, which held exactly $0. Emma's share was $2,800.
Buying an apartment isn't just buying a property. You're buying into a shared legal entity with shared costs, shared decisions and shared exposure. The disclosure documents help — but they only tell you what is there if you know what to look for. Here are five questions that would have helped Emma.
What is the LTM fund balance, and does it match the maintenance plan? The long-term maintenance fund is where money is held for future repairs — lifts, roofing, cladding, common area refurbishment. A fund with $0 in it isn't automatically a problem, but it should prompt a follow-up: how is the planned maintenance going to be paid for? If the answer is 'special levies when we need them,' expect surprises.
Has the body corporate been involved in any legal proceedings in the last three years? This one is in the PCDS and it matters. Tenancy Tribunal cases, disputes with contractors, unresolved insurance claims — any of these can have financial consequences that land on the owners after settlement. A body corporate that has been in active dispute isn't necessarily a bad sign, but you want to know what it was about and whether it is resolved.
What are the operational rules, and do they match how you plan to live? Pets, parking, short-term letting, smoking, modifications to your unit — all of these can be covered by body corporate rules. Rules that were written in 2010 may not reflect how people actually live now. If you want to list on Airbnb, or keep a dog, or set up a home office requiring different parking arrangements, check the rules before you commit.
When was the building insurance last reviewed, and what does it cover? The body corporate holds a principal insurance policy covering the building and common property. What matters is whether it has been reviewed recently enough to reflect current rebuild costs — which have increased significantly since the last insurance hard market hit New Zealand. A policy that is three years out of date and hasn't had its sum insured recalculated could leave the body corporate significantly underinsured after a major event.
What has the levy trajectory looked like over the last three years? One year of stable levies doesn't tell you much. But if they have increased 40% over three years with no corresponding investment in the building, something is off. Ask the seller for the last three years of annual accounts and work out where the money went. If you can't get that information, that is useful data too.
None of these questions are difficult or unusual. A seller with a well-managed building will be able to answer all of them quickly and confidently. One who hedges or says they will have to ask the manager and get back to you is telling you something about the state of the building's records — and the state of its management.
Quarter is the new body corporate — transparent, owner-first, and built for the way people actually live together. See how it works at quarter.nz.