How to Resolve Common Body Corporate Disputes

As one of Wellington’s leading body corporate and facilities management companies, Hallmark & Stone understands that disputes can occasionally arise within body corporates.

In this latest instalment of our series on Body Corporate Management, we’ll explore common sources of disputes and provide guidance on how to resolve them effectively.

Understanding the Common Sources of Disputes

Body corporate disputes can stem from various issues, including:

1. Maintenance and repairs: Disagreements over responsibility for repairs or the urgency of maintenance work.
2. Financial matters: Disputes over levy amounts, special levies, or budget allocations.
3. Rule violations: Conflicts arising from breaches of body corporate rules or by-laws.
4. Noise complaints: Disputes between residents over excessive noise or disturbances.
5. Parking issues: Disagreements over parking space allocation or misuse of common parking areas.
6. Pet-related conflicts: Disputes over pet ownership or behaviour in the complex.
7. Alterations to units: Disagreements over unit modifications that may affect common property.

Understanding these common sources can help body corporate members anticipate and prevent potential conflicts.

The Legislation and Your Scheme’s By-Laws

In New Zealand, body corporates are governed by the Unit Titles Act 2010 and its subsequent amendments. As of March 2025, the most recent changes to this legislation came into effect on May 9, 2024. These changes aimed to improve transparency and strengthen the rules around body corporate duties and expectations.

Key aspects of the legislation include:

• Powers and duties of the body corporate
• Dispute resolution processes
• Governance procedures

It’s crucial for all body corporate members to familiarise themselves with:

1. The Unit Titles Act 2010 and its amendments
2. Their specific body corporate’s operational rules (also known as by-laws)

Your body corporate’s operational rules play a vital role in managing the complex and can be a useful tool in resolving disputes. These rules should be fair, equitable, and aligned with the Act.

Initial Steps to Resolve Body Corporate Disputes

When a dispute arises, follow these steps for resolution:

1. Direct communication: Always start by discussing the issue directly with the involved parties. Often, misunderstandings can be resolved through open and respectful dialogue.
2. Review body corporate rules: Ensure all parties are familiar with the relevant rules and regulations.
3. Formal complaint: If direct communication doesn’t work, lodge a formal complaint with the body corporate committee.
4. Body corporate meeting: Bring significant issues to a general meeting of unit owners for discussion and potential resolution.
5. Mediation: Consider professional mediation services. Many disputes can be resolved through this process, which is often quicker and less costly than formal legal proceedings.
6. Tenancy Tribunal: For disputes involving amounts less than $100,000, you can apply to the Tenancy Tribunal for mediation or adjudication.
7. Legal action: As a last resort, more complex disputes may need to be taken to the District Court or High Court.

At Hallmark & Stone, we emphasise the importance of early intervention and open dialogue in dispute resolution. Our experienced team can guide you through these steps, ensuring a fair and efficient resolution process.

Resources for NZ Property Owners

Several resources are available to help New Zealand property owners navigate body corporate disputes:

1. Ministry of Housing and Urban Development: Provides information on the Unit Titles Act and recent changes.
2. Tenancy Services: Offers guidance on body corporate operational rules and dispute resolution processes.
3. Unit Title Services: Provides valuable information on body corporate management and dispute resolution.
4. New Zealand Dispute Resolution Centre (NZDRC): Offers professional mediation and arbitration services.

Conclusion

While body corporate disputes can be challenging, they are not insurmountable. By understanding common sources of conflict, familiarising yourself with relevant legislation and by-laws, and following a structured resolution process, most disputes can be resolved amicably.

At Hallmark & Stone, we’re committed to helping body corporates in Wellington and across New Zealand manage and resolve disputes effectively. Our expertise in Body Corporate Management ensures that we can provide tailored advice and support for your specific situation.

For more information on body corporate management, check out our other articles in this series:

• What is Body Corporate Management, and Why is It Essential?
• Body Corporate Management Fees: What to Expect
• Key Responsibilities of a Body Corporate Manager in New Zealand

Remember, effective communication, understanding, and a willingness to compromise are often the keys to resolving body corporate disputes efficiently. If you’re facing a dispute or want to improve your body corporate’s conflict resolution processes, don’t hesitate to reach out to our team of experts at Hallmark & Stone.

Frequently Asked Questions

Who can be involved in a body corporate dispute?

Body corporate disputes can involve various parties, including:

• Individual unit owners
• The body corporate committee
• Tenants
• The body corporate manager
• Contractors or service providers

Any member of the body corporate or person affected by body corporate decisions can potentially be involved in a dispute.

Are there specific steps to resolve disputes?

Yes, there are specific steps to resolve body corporate disputes in New Zealand:

1. Direct communication between parties
2. Formal complaint to the body corporate committee
3. Discussion at a body corporate meeting
4. Mediation
5. Application to the Tenancy Tribunal (for disputes under $100,000)
6. Legal action through the District Court or High Court

It’s always recommended to start with the least formal methods and escalate only if necessary.

Can by-laws be challenged in a dispute?

Yes, body corporate operational rules (by-laws) can be challenged if they are believed to be unfair or inequitable. If you disagree with changes the body corporate makes to the rules and vote against the change, you can apply to the Tenancy Tribunal or Courts for relief. However, it’s important to note that any changes to operational rules must comply with the Unit Titles Act and be registered with Land Information New Zealand to take effect.