Webinar – management rights, management issues and developers

The webinar will be of interest to those involved with management rights – primarily developers, current managers or possible purchasers of management rights.  We will talk about: the Unit Titles Act 2010 s139 and s140 duties of care on developers recent Court cases (including the decision at The Sentinel and Atrium Management) whether there remains such…

Details

Shareholders agreement

It comes up quite often, a business is started or bought between family or friends or colleagues, and a company set up to own and run the business.  What you then have is a partnership of people who are now in business together.  Most often these people have not worked together before, and may not…

Details

Renewable energy

We have for some time had a policy of contributing to selected start up projects that have the potential to benefit New Zealand or humanity in the wider context.  This is a contribution in the form of legal and business services made available either at no cost or at a significant discount. Renewable energy is…

Details

Council’s new duty of care – Part 1

On 11 October 2012 the Supreme Court held that council owe a new duty of care.  It has come about from the litigation about the Spencer on Byron development, which is leaky.  The court by a 4-1 majority has held that the Court of Appeal was wrong to allow the strike out of the claim…

Details

UTA 2010 – searching the register, enduring proxies, chairperson and transition

The Auckland High Court recently considered an application from Lihua Limited, against Body Corporate 366611, Theta Management Limited and BCS Limited.  The procedural decisions may be of interest to those managing body corporates.  The case concerned the Empire apartment building in Auckland.  It seems to arise out of two management companies operating at the building.  Theta manages…

Details

Long term maintenance plans

See www.dbh.govt.nz to download a template long term maintenance plan for a complex or simple body corporate.  These plans are now compulsory for a body corporate and will need to be provided by a unit owner to a purchaser if they ask for additional disclosure.  Long term maintenance funds are however optional and the body corporate can…

Details

Wills and personal admin

If your personal admin list includes sorting your will, then September is wills month.  A simple will is not expensive.  It’s easy and saves your loved ones the added pressure of working out how to deal with your estate. If you die intestate (without a will) your assets will be distributed in accordance with the law.  If…

Details

Taxing lease incentives – changes on the way

The government’s measures to increase their tax take through the targeting of the property industry looks set to continue. First we had the erosion of depreciation, followed by the changes to loss attributing qualifying companies. Now the government is proposing to change the way it taxes lease inducement payments. In the current economic environment it…

Details

Management agreements and exclusive letting

The first is the Court of Appeal’s decision on 21 February 2012 in Atrium Management Limited v Quayside Trustee Limited (In receivership and liquidation).  This case was concerned with an agreement for the sale and purchase of management rights.  It was not a body corporate challenging a management agreement as ultra vires or trying to use section…

Details

Compulsory Zero Rating

A recent proliferation of webinars on the new agreement for sale and purchase and GST has raised some interesting points. Zero rating will still apply to the sale of a taxable supply but the sale and purchase of land now requires the parties to examine their GST positions and determine whether the transaction is compulsorily…

Details

Management rights under fire

The Auckland High Court has issued its decision on the management agreement for the Sentinel Apartments in Takapuna.  The body corporate was challenging the management arrangements put in place by the original developer.   The Court concluded that the management agreement is harsh or unconscionable in terms of section 140(5) of the Unit Titles Act…

Details

Cross-lease vs fee simple

Fee simple Fee simple ownership is true exclusive ownership and possession of the land and buildings on it. It’s ownership of what is below and above the ground (as is reasonable). Yes, others do get a say – for example the neighbours might have a say over fences; Council in terms of compliance with the District Plan…

Details