(1) Subject to subsection (3), the initial owner of land affected by an owners corporation must act honestly and in good faith and with due care and diligence in the interests of the owners corporation in exercising any rights under this Act.
(2) Subject to subsections (3) and (4), the initial owner of land affected by an owners corporation must take all reasonable steps to enforce any domestic building contract (within the meaning of the Domestic Building Contracts Act 1995 ) entered into by the initial owner in respect of land in the plan of subdivision providing for the creation of the owners corporation.
(3) Subsections (1) and (2) apply to an initial owner only while the initial owner is the owner of the majority of the lots affected by the owners corporation and only until the end of the period of 5 years following the registration of the plan of subdivision.
(4) Subsection (2) applies only to the enforcement of a breach of contract—
(a) to the extent that it relates to the common property affected by the owners corporation; and
(b) of which the initial owner is aware or ought reasonably to be aware.
(5) In this section “initial owner” means the person who was the applicant for the registration of the plan of subdivision.