In a unit title development under the Unit Titles Act 2010, what percentage of unit owners must agree to pass an ordinary resolution?
Correct Answer
A) More than 50% of those present and voting
An ordinary resolution under the Unit Titles Act 2010 requires more than 50% of the votes of those unit owners present and voting at the meeting. This is the standard voting threshold for most routine body corporate decisions.
Why This Is the Correct Answer
Option A is correct under Section 103 of the Unit Titles Act 2010. An ordinary resolution requires more than 50% of the votes of unit owners present and voting at a properly constituted body corporate meeting. This simple majority threshold applies to routine body corporate business including annual budgets, maintenance contracts, and administrative matters. The legislation specifically uses 'present and voting' to ensure abstentions don't count against the resolution and absent owners don't prevent necessary decisions.
Why the Other Options Are Wrong
Option B: 75% of all unit owners
75% of all unit owners is the threshold for special resolutions under Section 104, not ordinary resolutions. This higher threshold applies to significant decisions like rule changes, major capital expenditure, or structural alterations. Additionally, requiring 75% of ALL unit owners (not just those present) would make decision-making impractical as it would require near-perfect attendance at every meeting.
Option C: Two-thirds of those present and voting
Two-thirds (approximately 67%) is not a threshold specified in the Unit Titles Act 2010 for any type of resolution. This percentage might be confused with other legislation or corporate governance structures, but it has no application in unit title body corporate voting. The Act specifically uses 50% for ordinary resolutions and 75% for special resolutions.
Option D: Unanimous agreement
Unanimous agreement is not required for ordinary resolutions and would make body corporate decision-making virtually impossible. While unanimous resolutions exist for extraordinary matters like terminating the unit plan, ordinary business requires only a simple majority. Requiring unanimity would give every single unit owner veto power over routine decisions like maintenance and budgets.
Deep Analysis of This Property Law Question
This question tests understanding of voting thresholds in unit title developments under the Unit Titles Act 2010. The distinction between different resolution types is crucial for body corporate governance. Ordinary resolutions handle routine matters like approving budgets, maintenance decisions, and administrative issues. The 'more than 50% of those present and voting' threshold ensures decisions can be made efficiently while maintaining democratic participation. This differs from special resolutions (75%) used for significant changes like rule amendments or major expenditure. The 'present and voting' qualifier is important - it means abstentions don't count against the resolution, and absent owners don't prevent decision-making. This practical approach prevents small groups from blocking routine business while ensuring adequate participation for important decisions.
Background Knowledge for Property Law
The Unit Titles Act 2010 governs multi-unit developments in New Zealand, establishing body corporate structures and voting procedures. Ordinary resolutions handle routine matters requiring more than 50% of those present and voting. Special resolutions need 75% for significant changes like rule amendments or major expenditure. The 'present and voting' qualification means only unit owners attending the meeting and casting votes count toward the threshold. Abstentions and absent owners don't count against resolutions. This framework balances democratic participation with practical decision-making needs in body corporate governance.
Memory Technique
Remember 'Ordinary = Over 50, Special = Seventy-Five'. Think of it like a school test: ordinary business needs a simple pass (50%+), but special changes need distinction level (75%). The 'present and voting' part is like attendance - only those who show up and participate count.
When you see unit title voting questions, immediately identify if it's ordinary (routine) or special (significant) business. Ordinary = 50%+, Special = 75%. Always check if the question asks about 'all owners' or 'present and voting' - the Act uses 'present and voting' for practical decision-making.
Exam Tip for Property Law
Look for keywords: 'ordinary resolution' = more than 50% of present and voting. Don't confuse with 'special resolution' (75%) or 'all unit owners' (which isn't used). Focus on 'present and voting' not total ownership.
Real World Application in Property Law
At the annual general meeting of Harbour View Apartments, 40 of 60 unit owners attend. The body corporate needs to approve a new cleaning contract (ordinary resolution). Of the 40 present, 25 vote in favour, 12 vote against, and 3 abstain. The resolution passes because 25 out of 37 voting (67%) exceeds the required 50%. The 3 abstentions and 20 absent owners don't count against the resolution, allowing efficient decision-making for routine body corporate business.
Common Mistakes to Avoid on Property Law Questions
- •Confusing ordinary (50%) with special (75%) resolution thresholds
- •Thinking the percentage applies to ALL unit owners rather than those present and voting
- •Including abstentions in the vote count when they should be excluded
Related Topics & Key Terms
Key Terms:
More Property Law Questions
Under the Real Estate Agents Act 2008, what is the maximum period for which a real estate agent's licence can be issued?
What is the primary purpose of the Land Transfer Act 2017?
Under the Unit Titles Act 2010, who is responsible for maintaining the common property in a unit title development?
What is the statutory cooling-off period for off-the-plan unit title sales under the Unit Titles Act 2010?
A real estate agent discovers that a property they are marketing has a significant structural defect that the vendor has not disclosed. Under the Real Estate Agents Act 2008, what should the agent do?
- → Under the Property Law Act 2007, what is the effect of a properly executed deed compared to a simple contract?
- → A purchaser discovers after settlement that the vendor's solicitor held a power of attorney that had been revoked before the sale. What protection does the Land Transfer Act 2017 provide?
- → Under the Real Estate Agents Act 2008, in what circumstances can the Real Estate Agents Authority refuse to issue a licence to an applicant?
- → A unit title body corporate wishes to create a new rule requiring all unit owners to obtain body corporate approval before making any alterations to their units. Under the Unit Titles Act 2010, what type of resolution is required to pass this rule?
- → A property has been sold subject to an existing tenancy, but the Land Transfer register shows no notation of the tenancy. Under the Property Law Act 2007 and Land Transfer Act 2017, what is the likely legal position?
- → Under the Real Estate Agents Act 2008, what is the maximum period for which a real estate agent's licence can be issued?
- → Which document is required to be registered under the Land Transfer Act 2017 to transfer ownership of fee simple land?
- → Under the Unit Titles Act 2010, what percentage of unit owners must vote in favour to pass an ordinary resolution at a body corporate meeting?
- → According to the Property Law Act 2007, what is the minimum period of notice required to terminate a periodic tenancy where rent is payable monthly?
- → A real estate agent discovers that a property they are marketing has a significant structural defect that the vendor has not disclosed. Under the Real Estate Agents Act 2008, what must the agent do?
People Also Study
Agency Practice
130 questions
Sale & Purchase Process
130 questions
Professional Conduct & Ethics
110 questions
Property Management
90 questions
Related Study Resources
Previous Question
In a unit title development, the body corporate wishes to undertake major renovations to the common property that will cost $150,000. Under the Unit Titles Act 2010, what type of resolution is typically required?
Next Question
In a unit title development, who is responsible for maintaining the common property under the Unit Titles Act 2010?