By virtue of the Unit Titles Act 1972 ("the Act") a Body Corporate must raise and collect Levies from its Proprietors sufficient to carry out all of the Body Corporate's statutory functions.
The Levies will be used for payment of the annual insurance premium for the buildings plus the fee for updating the insurance valuation, maintenance of lifts, landscaping maintenance, postages, stationery, meeting room hire, payment of its Secretarial Fee, ensuring the Building Warrant of Fitness is kept current, common property lighting, various property maintenance requirements, rubbish collection, maintaining/servicing security and access systems, emergency telephones plus a host of other items applicable in some instances.
In addition, the establishment and building up of a Sinking Fund over time to be used for the repainting of the exterior of the buildings as and when required and for other longer term maintenance/replacement costs as and when they arise, whilst not mandatory under the Act in New Zealand, is a necessity in well run Bodies Corporate. It is significant to note that Sinking Funds are mandatory in some parts of Australia.
Please contact us for further information.