If you own an apartment or townhouse in a multi-unit development, you’re probably part of a Body Corporate. It’s common for owners to ask whether they can opt out of membership, but under New Zealand law, that isn’t possible. When you buy a unit title property, you automatically become part of the body corporate. It’s a legal relationship tied to the ownership of the property, not a voluntary membership.
What is a Body Corporate?
A Body Corporate is the collective group of all unit owners in a unit title development. It’s established automatically under the Unit Titles Act 2010, and the body corporate’s role is to manage and maintain the shared areas of the property, such as roofs, driveways, lifts, and gardens.
Each owner contributes financially through levies and participates in decision-making at an Annual General Meeting. Ordinarily Body Corporate owners vote in a Committee at the AGM, which is allowable under the Unit Titles Act 2010, to make these decisions on behalf of all owners on other occasions outside of the AGM. The Body Corporate also ensures compliance with insurance, maintenance, and health and safety requirements across the development.
More information: What is the Difference Between Unit Titles, Residents Societies, and Cross Leases?
How a Body Corporate Differs from a Residence Society
Some developments are structured differently, using a residence society or residents’ association instead of a Body Corporate. These are common for freehold developments where owners share private roads or common facilities.
Although the structure is different, as is the governing legislation, the principle is the same — the shared property must be managed collectively, and membership is usually required under the property’s encumbrance or covenants. This means you also can’t “opt out” of a residence society any more than you can a Body Corporate.
Read more on What is a Residents Society?
Why You Can’t Get Out of a Body Corporate
When you buy a unit title property, you purchase both the ownership rights and the obligations that come with it. The Body Corporate is embedded in the title itself. You cannot contract out of it, refuse membership, or decline to pay levies, because your ownership interest depends on shared responsibility for the development.
Legal Reasons You Can’t Opt Out
Under the Unit Titles Act, every unit owner is automatically part of the Body Corporate. This is not an optional organisation like a club or community group. The law ties membership to ownership so that the common property is properly managed, insured, and maintained.
If an owner could opt out, the development could not operate safely or equitably, as some owners would be using shared areas without contributing to their upkeep.
What if I Don’t Agree with the Body Corporate’s Decisions?
If you’re unhappy with how your Body Corporate is being managed, there are formal processes available. Owners can:
- Raise motions or concerns at the next annual general meeting.
- Request an extraordinary general meeting.
- Vote to change the Body Corporate committee or engage a new professional manager.
- Seek mediation or dispute resolution under the Tenancy Tribunal if necessary.
These mechanisms exist to ensure fair governance and accountability while keeping ownership responsibilities consistent.
Benefits of Being Part of a Well-Managed Body Corporate
While obligations can sometimes feel restrictive, there are also significant benefits to being part of a well-run Body Corporate.
Shared Maintenance and Long-Term Value
A professionally managed body corporate ensures roofs, cladding, and shared services are properly maintained, protecting the long-term value of your property. Collective maintenance avoids neglect and ensures compliance with health and safety standards.
Comprehensive Insurance
The Body Corporate arranges building insurance for the entire development, covering the structure of all units and common property. This provides peace of mind and often costs less per owner than arranging standalone insurance.
Stronger Community and Governance
Body Corporates can foster community, accountability, and collective decision-making. Many owners value the ability to influence how the development is maintained and to build relationships with neighbours through regular meetings and communication.
Key Takeaway - Ownership Comes with Collective Responsibility
You can’t get out of a Body Corporate because it’s not something you join — it’s something you legally inherit as part of your title. But with the right management and engagement, being part of a well-organised Body Corporate can make property ownership smoother, safer, and more rewarding.
Conclusion
Body Corporates and residence societies are legal structures designed to protect your property and maintain shared spaces. While membership is not optional, it’s an essential part of collective ownership that offers real benefits when managed effectively.
If you’d like to learn more about how your Body Corporate operates or get expert help with management and compliance, Crockers’ Body Corporate team can help.
