For Members
Terrace Downs Owners' Society
Owners' Society
What is the Owners' Society's role in the operation of Terrace Downs?
The provision of Property Services, like roads, water, sewage and rubbish collection, are facilitated by the Terrace Downs Resort Owners’ Society Incorporated “Owners’ Society”. The Owners’ society is an incorporated Society registered under the Incorporated Societies Act 2022. The Owners’ Society is governed by and operates under its constitution
The purpose of the Owners’ Society is set out in detail in its Constitution, but in summary its purpose is to manage and levy costs under the Cost Sharing Agreement, ensure the Resort Owner complies with the Cost Sharing Agreement and ensure the Resort Infrastructure is maintained to a good standard.
Who is the day-to-day Manager of the Owners’ Society?
Thompson Wentworth is a professional property and body corporate asset management company that performs the role of the secretary and treasurer of the of the Owners’ Society. The role of the secretary and treasurer is set out in detail in the constitution of the Owners’ Society.
How are residential Property Owners represented?
The Owners’ Society has a committee comprising representees from each of the body corporates, chalets, and a vacant section. The committee meets regularly and holds an annual meeting to which Residential Property Owners are invited to attend.
Can I become a member of the Owners’ Society?
All Residential Property Owners are required to become members of the Owners’ Society and remain a member while a Property Owner. The secretary of the Owners’ Society is responsible for ensuring Residential Property Owners become a member, remain a member and pay their Levy.
Owners' Society
Maintenance & Infrastructure
Who maintains the Resort Infrastructure?
The Resort Owner maintains the Resort Infrastructure and the cost of this is shared by the Residential Property Owners and the Resort Owner. There is a Cost Sharing Agreement that regulates this maintenance arrangement and an Owners’ Society that jointly manages this for the benefit of everyone at Terrace Downs.
Titles to the Residential Properties have an Encumbrance recorded on them that requires the Resort Owner to provide Property Services and the Residential Property owners to contribute to the cost of such services. The Encumbrance also regulates building and maintenance standards. Residential properties also have easements recorded on them providing a right of way and the right to covey water.
How is the Service Infrastructure managed?
The Encumbrance creates an obligation on PHC as owner of the Resort to provide Property Services, to provide Infrastructure to the boundary of Residential Properties, ensure a sealed road passes in proximity to the property and for Residential Property Owners to contribute to the cost of this. The Cost Sharing Agreement sets out in detail how infrastructure is maintained and how the cost of this is allocated.
Is there a long-term maintenance plan?
The Resort Owner is required under the cost sharing agreement to have a 10-year long term maintenance plan for the Resort. The Cost sharing agreement provides for the creation of a sinking fund to support the long-term maintenance of the Resort Infrastructure. Details of this can be found in the Cost sharing agreement. The sinking fund was created in 2023 and accordingly has not yet accrued to a level that would cover any significant property infrastructure upgrades.
What is the Owners’ Societies role in the operation of Terrace Downs?
The provision of Property Services, like roads, water, sewage and rubbish collection, are facilitated by the Terrace Downs Resort Owners’ Society Incorporated “Owners’ Society”. The Owners’ society is an incorporated Society registered under the Incorporated Societies Act 2022. The Owners’ Society is governed by and operates under its constitution
The purpose of the Owners’ Society is set out in detail in its Constitution, but in summary its purpose is to manage and levy costs under the Cost Sharing Agreement, ensure the Resort Owner complies with the Cost Sharing Agreement and ensure the Resort Infrastructure is maintained to a good standard.
1.
Owners' Society
Property Ownership Expenses Incurred by Owners at Terrace Downs
Property Ownership costs at Terrace Downs fall into the adjacent categories:
Owners Society Cost Sharing Agreement Levy:
The Resort Owner and the Owners’ Society have entered into a Cost Sharing Agreement. That Cost Sharing Agreement sets out the Resort Owners’ obligations to provide the Property Services set out in schedule 2 of that agreement and the Owners’ Societies obligation to pay a Service Fee to cover its contribution to the costs incurred by the Resort Owner providing those services. The services provided by the Resort Owner are set out in detail schedule 2 of the Cost sharing Agreement. In summary these services include, security, water connection, water system maintenance, sanitary sewer maintenance, emergency water contingency, roading and footpath maintenance and repairs, gardening and grounds maintenance. The Resort Owner employs a property maintenance manager as part of this arrangement. The cost sharing Levy is reviewed bi-annually (every two years).
The current levy payable for the year (1 April 2025 – 31 March 2026) is as follows.
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The villa levy fee is $2,403
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The chalet levy is $2,446
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The vacant section levy is $1,489
2.
Body Corporate Levy:
For those owners who are members of one of the three body corporates at Terrace Downs, you will also be levied each year by those body corporates for your unit’s share of the approved annual body corporate fees for the body corporate your unit belongs to.
Each body corporate villa’s individual levy is available via the relevant villas published annual financial statements and any disclosure statement prepared for each villa if that villa is proposed to be sold. You can contact the body corporate secretary for this information on BCManagement@twl.net.nz
Note: A villa’s body corporate levies are in addition to a villa units Owners Society Cost Sharing Agreement Levy described in item 1 above.
3.
Section 6 of the “Building and Landscape Design Guidelines for Terrace Downs High Country Resort” covers the process required of owners wanting to undertake a new build on their section or alterations to their chalet at Terrace Downs. Sections 6.1 to 6.4 specifically address the process around original section or chalet pre purchase due diligence with respect to owner’s new build or alteration obligations and the process surrounding concept and detail architectural plan approval and associated fees for such approval. See Design Guidelines section of website for further detail in following button below.
Before you submit your final detailed design drawings / submission, a fee of $2500 is payable to the secretary of the TD Owners Society where it will be held as a deposit against time and cost incurred to process your design approval application. The fee covers all expenses of the TDDC. Additional fees might be required if the design process takes longer or becomes more complicated than anticipated. The final detailed design assessment process will not commence until the design application deposit is received by the secretary of the TD Owners Society.’
Design Approval and Application Assessment Deposit:
4.
Sale disclosure statement fees:
When an owner sells a property be it a body corporate villa, a chalet, or a vacant section, the owner is required to request a disclosure statement from the Owners' Society/ Body Corporate Secretary. Those villa owners who are members of a body corporate will be familiar with this requirement, it being an obligation under the Unit Titles Act 2010 (UTA) on an owner and their body corporate committee, to ensure an incoming purchaser has been provided with appropriate pre-sales contract and a pre-settlement, disclosure statements outlining the prescribed information about the body corporate unit being sold, as determined by the UTA. The costs for these disclosure statements are as follows;
Body Corporate Disclosure Statements:
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Pre-Contract Disclosure Statement $400+gst
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Pre-Settlement Disclosure Statement $300+gst
Owners' Society Disclosure Statements (Sections & Chalet only)
Schedule A of the Constitution Notice of Sale provides a template for the vendor to advise the Owners’ Society in writing of the transfer of the title to his/her unit, and the name and contact details for the new owner.
The end-to-end process at sale time for owner society members is detailed in the link supporting the section below outlining “What happens when a Residential Property Owner sells their property?”
5.
Golf Membership Fees:
Should you wish to become a member of the Golf Club there is an addition membership fee. Details can be found on the Fable Terrace Downs website.
Owners' Society
Are there any other costs payable to the Resort Owner?
No. All Property Services are covered by the Cost Sharing Agreement. Should you wish to become a member of the Golf Club there is an addition membership fee. Details can be found on the Fable Terrace Downs website.
Owners' Society
What happens when a Residential Property Owner sells their property?
When a member ceases to be an owner they are deemed to have resigned from the Owners’ Society.
When a Residential Property Owner sells their property, they are required to include in their agreement for sale and purchase a requirement on the purchaser to become a member of the Owners’ Society and deliver a notice of sale to the secretary. To make this simple for Property Owners intending to sell their property at Terrance Downs, the Owners Society (with the assistance of its relevant legal support) has developed a standard clause for inclusion by a Property Owners’ agent or solicitor. This Further Terms of Sale inclusion can be accessed via the document called “Clause for sale and purchase agreements” contained in the following link.
The objective of the Owners’ Society is to create a long term, binding obligation on all future purchasers of residential property to become members of the Owners’ Society. To help achieve this, prior to transferring Residential Property, the seller must register a covenant on their title for the benefit of the Society requiring all future owners of that property to become members of the Society while they are a Residential Property Owner. This provision gives all owners assurance that other owners are contributing their levy and that everyone is contributing fairly to the cost of the Property Services procured from the Resort Operator (PHC Terrace Downs Resort Limited) under the Cost Sharing Agreement between the Owners Society and the Resort Owner and Operator (PHC Terrace Downs Resort Limited).