I talk to a lot of buyers who are getting started and there's one thing question that nearly all of them ask:
'What is a Resident Society?'
If you're looking for an answer to that question then you're in the right place.
Let's go over the 5 most common questions Wellington buyers are asking in 2023.
What is a Resident Society?
A Resident Society is a community organisation that is empowered by law to manage the common areas and infrastructure of a development.
Ownership of the Society is split evenly between the owners of townhouses in the development.
How much are the annual fees?
The levy amount is apportioned between members in accordance with the Constitution. This is usually an equal share typically ranging from $1,000 to $2,000 per owner depending on the development.
Who runs the Resident Society?
The Resident Society is run by its members who are bound by the society's unique Constitution.
The Constitution outlines rules and requirements specific to the society, such as obligations and restrictions, handling of internal disputes, financial year-end audits, and Annual General Meetings. Members are responsible for ensuring the society's smooth running, so it's essential to participate actively.
What does it cover?
Common property, such as driveways, roading, lighting, and stormwater treatment systems, is jointly owned by the Resident Society members.
The society's upkeep costs are funded by its members through contributions or levies.
Keep in mind that if you damage common property, you'll be responsible for the repair costs.
What is the difference between a Body Corporate?
Many people wonder how a Resident Society differs from a Body Corporate.
While both are community organizations, a Resident Society is vastly more affordable than a Body Corporate.
Members must contribute to the maintenance and upkeep of communal areas in the society but are usually solely responsible for their own property's upkeep.
In contrast, a Body Corporate is governed by the provisions of the Unit Titles Act and Regulations, and its members have significantly less flexibility when it comes to insurance & ownership.
In summary, Resident Society exist to help owners make a long term plan for the maintenance of common property and infrastructure.
Like insurance, you'll be glad you invested in it when something goes wrong.
Hi I’m Hausia,
I help first home buyers make better buying decisions.
If you want access to arguably the best off-the-plans mortgage advisor in Lower Hutt, click ‘contact us’ below or head straight to his website here.
If you have any questions about something you've read in the blog, email hausia@faisandier.group.