The Government has recently released the proposed draft Financial Markets Conduct Bill (Bill). The Bill represents a comprehensive review of securities law. It will replace the existing Securities Act. The Bill removes the troublesome concept of “offer to the public”. Instead, unless an exemption applies, disclosure is required. Disclosure is made using a single product…
Earthquakes in Auckland are a rare occurrence, despite us having had one last month. What happened in Christchurch has got everyone thinking though, not least of all the lawmakers and there are new rules to be adhered to in relation to our buildings and whether they are strong enough. Auckland Council has just released its…
Agreements for sales off the plans will include sunset clauses – or "twilight" clauses as a client called them the other day. I like that new name it seems more accurate somehow. They will also be subject to s225 of the Resource Management Act. It is an interesting section, aimed at protecting the purchaser. First it gets…
A lessor must tread very carefully when considering the position of a lessee who has not yet exercised its right to renew the lease. The Property Law Act 2007 assists a lessee by providing relief in two situations where a right of renewal would otherwise be lost: • Where the lessee has breached a condition precedent to…
The changes to the NZ investor migrant policy that we flagged a couple of months ago have just been made operative. This should be of interest to developers seeking development funding. Migrants can now invest in residential property developments in order to secure residency. Residential property development has been added as an “acceptable investment” for migration…
Many agreements being signed now will be subject to the new seller’s disclosure regime. Agreements for sale and purchase for a unit title property will be subject to the new disclosure regime if entered into before 20 June with settlement after 27 June 2011. Agreements entered into on or after 20 June are also subject…
Lessors are encouraged to take a lot of care and attention when cancelling leases under the Property Law Act 2007. The Supreme Court’s decision on 10 May 2011 in Ingram & Knee v Patcroft Properties Limited shows that care and attention is very important. The lessor was held liable to pay damages to the lessee…
We were interested to hear that the investor migrant policy is changing with effect from 25 July 2011. Residential property will be an "acceptable investment" for migrants relying on the ‘investor’ category to seek residency in NZ. The migrant’s own house will not be an acceptable investment. Investment will need to be made in new…
Unit entitlements In the past all body corporate levies have been assessed on unit entitlements. Because unit entitlements are based on value, historically different owners using the same facilities could be required to contribute to costs to differing extents. This system was criticised as being unfair and imposing an irrelevant assessment model on costs. In…
Unit Titles Act 2010 Developers and Disclosure The impact of the Unit Titles Act 2010 on developers Disclosure requirements in general are introduced in a previous blog. What follows is an analysis of the specific implications for developers and the additional “turnover disclosure” that is relevant when a development is completed. Pre-contract Disclosure Pre-contract disclosure…
What is CZR? From 1 April 2011 it became compulsory for certain land transactions to be compulsory zero rated (CZR). This means that GST will be charged at the zero percent. The regime will apply to almost all transactions involving land that are made between GST registered parties. There are some limited exclusions. It is…
What is happening in Christchurch is impacting on the New Zealand property industry in all sorts of ways. One of these is the debate regarding contractual obligations between the parties. Most leases inadequately deal with the situation in Christchurch. Whilst they may deal with partial destruction and total destruction they do not adequately cover many…