Mandatory long term maintenance plan under new Unit Titles Act 2010.

February 13, 2012

in Property

Under the new Unit Titles Act 2010 (“UTA 2010”) every body corporate is required to establish and regularly maintain a Long Term Maintenance Plan.

The Long Term Maintenance Plan must cover a period of at least 10 years from the date of the plan or the last review of the plan. A body corporate must carry out a review of its Long Term Maintenance Plan at least once every 3 years.

The purpose of the Long Term Maintenance Plan is to:

  • identify future maintenance requirements and estimate the costs involved
  • support the establishment and management of the funds
  • provide a basis for the levying of owners of principal units
  • provide ongoing guidance to the body corporate to assist it in making its annual maintenance decisions.

The minimum content of the Long Term Maintenance Plan is prescribed in section 30 of the Unit Title Regulations 2011.

As a first step it is recommended that the body corporate immediately resolve to engage a suitably qualified building consultant to prepare a draft Long Term Maintenance Plan for the body corporate to review.


The UTA 2010 also requires every body corporate to establish and regularly maintain a Long Term Maintenance Fund unless the body corporate resolves by special resolution not to establish such a fund. This is not recommended.

Prospective purchasers (and their financiers) will likely be interested in the existence of a well managed and substantial long term maintenance fund. The property market could come to demand it so that a lack of a healthy long term maintenance fund could adversely affect the value of units.

In addition, there are no guarantees as to the financial strength of individual proprietors. It is easier to manage smaller contributions over time rather than having to chase owners for larger lump sums when maintenance expenditure is necessary.

The UTA 2010 also provides for:

→      an optional contingency fund for unbudgeted expenditure; and

→      an optional capital improvement fund for additions and upgrades to the unit title development that are           not provided for under the long-term maintenance plan.

The new long term maintenance plan and fund provisions will apply from 1 October 2012 unless the Body Corporate resolves by special resolution to adopt them at an earlier date.

If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:

Fahra Manning

09 379 0055

The information contained in this publication is intended as a guide only.  It does not constitute legal advice and should not be relied upon as such.  Professional advice should be sought before applying any of the information to particular circumstances.  While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain. 

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