Learner assessment
Explain aspects of the Unit Titles Act 2010 for real estate personnel (22311 v4)
NZ Certificate in Real Estate (Salesperson) (Level 4)
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Introduction
Information about the content
This assessment is part of a module for the New Zealand Certificate in Real Estate (Salesperson) (Level 4) programme.
This is the assessment for the following unit standard:
22311 V4 Explain aspects of the Unit Titles Act 2010 for real estate personnel
People who hold this unit standard can explain aspects of the Unit Titles Act 2010 for real estate personnel.
Information on completing the assessment
You may have been given this assessment material by your organisation, or you may have downloaded the material from an online site.
This is an open book assessment. All answers must be in your own words, except when required to quote from official documents such as legislation and codes of practice. This shows you understand what you are explaining. Copying directly from any learning resource is considered plagiarism and will lead to your assessment being invalid (not officially accepted).
This assessment includes both multi-choice and short answer questions.
Feedback on the assessment
The Skills Organisation values feedback so that we can continue to improve our assessment resources. We invite you to send us feedback about any areas you found difficult to use in this assessment, or suggestions you have for changes and improvements.
Please email your feedback to resourcedeveloper@skills.org.nz

Learner’s answers should be consistent with the Unit Titles Act 2010 and its Regulations.
Questions
Answers to all questions must be consistent with the Unit Titles Act 2010.
Terms used or defined in the Unit Titles Act
Terms related to the title
Questions 1 to 5 refer to terms relevant to the Computer unit title register (certificate of title) below.
Question 1
The Computer unit title register (certificate of title) shows that Unit 1H is the principal unit owned by James and Amanda Person.
Explain the meaning of the word ‘unit’ in terms of a unit title development. ER 1.1
Question 2
Explain the meaning of ‘principal unit’. ER 1.1
Question 3
Give one residential example and one commercial example of a principal unit. ER 1.1
Question 4
The legal description of this property refers to a share of an ‘Accessory Unit’.
What is an accessory unit? ER 1.1

Question 5
Give two examples of accessory units. ER 1.1

The second page of the Computer unit title register (certificate of title) on page 6 is shown below. It is the unit plan.
Questions 6 to 8 refer to terms used on this diagram.
________________________________________________________________________________________
Transaction Id 49958564 Search Copy Dated 21/03/18 10:42 am, Page 2 of 2
Client Reference bmcdowe001 Register Only

Question 6
The unit plan shows an area of ‘common property’.
What is meant by common property? ER 1.1
Question 7
Give two examples that might be common property in a unit title situation. ER 1.1
Question 8
Explain how common property is owned in a unit title situation. ER 1.1

Body corporate
Definition of a body corporate
Question 9
Unit title developments operate under a body corporate.
What is a body corporate? ER 1.1
Question 10
Explain how the body corporate membership is affected when a unit owner sells their unit. ER 1.1
Body corporate operational rules
Question 11
What is the purpose of body corporate operational rules? ER 1.1
Question 12
Explain how body corporate operational rules are developed. ER 1.1

Question 13
Who must follow the body corporate operational rules? ER 1.1
Determining ownership interest and utility interest
Question 14
In terms of the Unit Titles Act, what is meant by ownership interest and who calculates it? ER 1.1
Question 15
Which of the following matters would the ownership interest be used to determine? ER 1.1
Select the three answers that apply.
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A. the unit owner’s beneficial interest in the common property
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B. The extent of the obligation of the owner of the principal unit in respect of capital improvements to their accessory unit.
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C. the unit owner’s beneficial interest in other units in the development.
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D. the unit owner’s share in the underlying land if the unit plan is cancelled
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E. the rights of the owner of the principal unit regarding distribution of any surplus money of a capital improvement fund.

Question 16
What is the utility interest, and how is it set? ER 1.1
Question 17
Which of the following matters would the utility interest be used to determine? ER 1.1
Select the two answers that apply.
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A. the unit owner’s beneficial interest in the common property
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B. The rights of the owner of the principal unit regarding contributions levied to funds or operating accounts
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C. the extent of each owner’s liability if the body corporate is sued or sues someone else
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D. the unit owner’s share in the underlying land if the unit plan is cancelled
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E. The rights of the owner of the principal unit regarding distribution of any surplus money in funds or operating accounts
Roles, powers and duties of a body corporate
Question 18
Explain the purpose of a body corporate. ER 1.2

Question 19
A body corporate has a range of duties specified under the Act.
Which of the following are duties of a body corporate? ER 1.2
Select the three answers that apply.
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A. carry out any work ordered by the council on an individual unit
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B. pay a levy into the long-term maintenance fund
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C. keep and maintain a register of all the owners of principal units and accessory units on the plan
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D. insure the buildings and other improvements on the land to their full insurable value
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E. keep accounting records and submit yearly financial statements to an independent auditor and provide financial statements with notice of AGM
Question 20
Explain one of the powers and duties the body corporate must not delegate. ER 1.2
Requirements of body corporate in terms of maintenance
Question 21
What are the requirements of the body corporate in terms of general repair and maintenance? ER 1.5

Question 22
What are the requirements of a body corporate in terms of establishing a long-term maintenance plan? ER 1.5
Select the two answers that apply.
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A. Must cover a period of at least 15 years from the date of the plan or the last review of the plan
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B. Must cover a period of at least 10 years from the date of the plan or the last review of the plan
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C. Must list day-to-day maintenance tasks
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D. Must establish and maintain a long-term maintenance plan
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E. Must include a review of the day-to-day maintenance plan
Question 23
Explain the purpose of a long-term maintenance plan. ER 1.5
Question 24
What are the requirements of a body corporate in terms of funding a long-term maintenance plan? ER 1.5
Select the three answers that apply.
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A. May decide, by special resolution, not to establish a long-term maintenance fund
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B. Must keep the long-term maintenance fund account separate from other body corporate accounts
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C. Must include the long-term maintenance fund account within the operating account
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D. Must never approve spending over the specified amount on any 1 maintenance item
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E. Must set up and manage a special fund to enable them to carry out the long-term maintenance plan

Powers of body corporate in terms of maintenance
Question 25
What are the powers of the body corporate in terms of access to units for maintenance and repairs? ER 1.5
Question 26
What powers do the body corporate have to recover costs of maintenance and repairs from unit owners? ER 1.5
Special resolution of a body corporate
Question 27
Several sections of the Unit Titles Act relate to a ‘special resolution’.
What type of body corporate decisions require a ‘special resolution’? ER 1.1
Select one answer.
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A. decisions to call an annual general meeting
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B. decisions that relate to the maintenance of the ownership register
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C. decisions that require payment from the operating account
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D. decisions that could have significant consequences for the unit owners

Question 28
Give one example where a ‘special resolution’ might apply. ER 1.1
Question 29
What are the requirements for a special resolution to pass? ER 1.1
Select one answer.
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A. 50% of all the eligible voters who vote on the resolution must vote in favour
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B. 60% of all the eligible voters who vote on the resolution must vote in favour
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C. 75% of all the eligible voters who vote on the resolution must vote in favour
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D. 80% of all the eligible voters who vote on the resolution must vote in favour

Body corporate committee
Definition of a body corporate committee
Question 30
What is a body corporate committee? ER 1.1
Powers and duties of a body corporate committee
Question 31
The following questions relate to the powers and duties of a body corporate committee.
What powers and duties does a body corporate committee have and how do they come about? ER 1.3
Select the two answers that apply.
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A. powers and duties delegated to the committee by special resolution of body corporate
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B. powers and duties delegated to the committee by verbal notification from body corporate
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C. powers and duties delegated to the committee by written notice from body corporate (except those in subsection 2 of s108)
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D. powers and duties delegated to the committee by written notice from the land developer
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E. powers and duties delegated to the committee by 40% of the unit owners

Question 32
Explain the reporting requirements for body corporate committees. Include in your answer the information the reports must include. ER 1.3
Question 33
Explain what the body corporate can do if it the body corporate committee is not exercising its delegated powers and duties as required. ER 1.6

Unit owners
Definition of a unit owner
Question 34
What is the definition of an owner under the Unit Titles Act 2010? ER 1.1
Roles, powers and duties of unit owners
Question 35
Owning a unit title property comes with many responsibilities which are specified in the Unit Titles Act. The following questions relate to some of these responsibilities.
What expenses are unit owners required to meet in relation to the body corporate? ER 1.4

Question 36
The owner of a principal unit must allow the body corporate (or its agents) to enter the unit at any time in an emergency and at all reasonable hours after reasonable notice for other purposes.
For what reasons can the body corporate (or its agents) enter the unit at all reasonable hours after reasonable notice? ER 1.4
Select the four answers that apply.
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A. to inspect and ensure compliance with council bylaws
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B. to maintain, repair or renew any building elements that affect more than 1 unit or the common property, or both.
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C. to maintain, repair or renew infrastructure for services and utilities that serve more than one unit
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D. to maintain, repair or renew building elements affecting neighbouring properties
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E. to maintain, repair or renew any common property
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F. to inspect and ensure compliance with operational rules and owner’s and occupier’s obligations under the Act
Question 37
What are the requirements if unit owners want to make any additions or structural alterations to the unit? ER 1.4

Non-compliance by a unit owner and the body corporate committee
Non- compliance by body corporate committee
Question 38
If a body corporate committee fails to comply with its legal responsibilities under the law, and informal discussions have not resolved the issue, the body corporate can take action against the committee.
What action can the body corporate take in this situation? Include the relevant section of the Act in your answer. ER 1.6
Non-compliance by unit owners
Question 39
If the unit owner doesn’t pay money due, what monies can the body corporate recover from a unit owner if they owe a debt under the Unit Titles Act? ER 1.6
Select the three answers that apply.
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A. Money spent on repairs and other work inside a neighbour’s unit
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B. Unpaid levies or contributions
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C. Money spent on repairs and other work mostly for the benefit of their unit
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D. Any costs incurred in doing any repair work caused by a wilful or negligent act by the owner, which should have been their responsibility
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E. Unpaid water and land rates

Question 40
Identify the sections of the Unit Titles Act associated with your answers to Question 39? ER 1.6
Question 41
If the body corporate and the owner (or former owner) of a principal unit are in dispute over non-compliance of the other party, and they have not been able to resolve the problem, the Tenancy Tribunal is able to provide mediation or adjudication.
Give one action the Tenancy Tribunal can require of the parties as a remedy. Include the relevant section of the Act in your answer. ER 1.6
Question 42
Explain one action that can be taken if a body corporate is not complying with their powers and duties. Include the relevant section of the Act in your answer. 22311 ER 1.6

Disclosure statements
Disclosure statements are required at different stages of the conveyancing process when a unit title property is being sold.
The questions in this section relate to these disclosure statements.
Pre-contract disclosure statement (PCDS)
Question 43
What is a pre-contract disclosure statement (PCDS)? ER 1.1
Question 44
Which of the following are examples of the information required in a pre-contract disclosure statement (PCDS)? ER 1.1
Select the three answers that apply.
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A. Details of maintenance that the body corporate proposes to carry out in the year following the date of the statement
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B. The amount of contribution levied under section 121 for the unit being sold
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C. The annual land and water rates for any unit being sold
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D. Details of the maintenance the body corporate has carried out in the year before the date of the statement
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E. The period covered by any contribution levied under section 121 for the unit being sold
Question 45
When and in what form must the pre-contract disclosure statement (PSDS) be provided? ER 1.1

Pre-settlement disclosure statement (PSDS)
Question 46
What is a pre-settlement disclosure statement (PSDS)? ER 1.1
Question 47
Which of the following are examples of the information required in a pre-settlement disclosure statement (PSDS)? ER 1.1
Select the three answers that apply.
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A. Date of last increase in levy
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B. Manner of payment of levy
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C. Date on or before which payment of the levy is due
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D. Lot number
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E. Body corporate number
Question 48
When must the pre-settlement disclosure statement (PSDS) be provided? ER 1.1

Question 49
What document must accompany the pre-settlement disclosure statement (PSDS) and what is the purpose of this document? ER 1.1
Additional disclosure statement (ADS)
Question 50
What is an additional disclosure statement (ADS)? ER 1.1
Question 51
Which of the following are examples of the information required in an additional disclosure statement (ADS)? ER 1.1
Select the three answers that apply.
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A. Details of regular expenses that are incurred at least once a year
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B. Contact details for all unit owners in the unit title development
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C. Balance of every fund or bank account held or operated by the body corporate at the date of the last financial statement
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D. Amounts of invoices paid by the body corporate in the two months prior to the date of the statement
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E. Amounts owed to the body corporate at the date the statement is requested

Question 52
When must a request for an ADS be made? ER 1.1
Question 53
When must the additional disclosure statement (ADS) be provided? ER 1.1
Question 54
What happens if the additional disclosure statement (ADS) is not provided in the required timeframe? ER 1.1

Assessor notes from discussion with the learner’s verifier (if needed)

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22311 v4 4 2 Explain aspects of the Unit Titles Act 2010 for real estate personnel
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