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…

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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…

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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…

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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…

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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…

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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…

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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…

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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…

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Supreme Court decision on Blue Chip and the Securities Act

The recent Blue Chip Supreme Court decision will come as a huge relief to families up and down New Zealand.  An argument had been made on behalf of numerous investors in Blue Chip schemes that Blue Chip had breached the requirements of the Securities Act.  In signing up mum and dad investors across the country…

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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…

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New agreement for sale and purchase

We have set out below a short summary of the changes in the new 9th edition.  There are some changes specific to unit titles and commercial transactions, which we cover separately.  The first section is potentially relevant to all agreements.  There is a lot to take in.  Some of the changes assist vendors, and some purchasers,…

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Conveyancing and sinking funds

Sinking funds are common in the management of commercial property. Increasingly they need to be considered in residential developments when dealing with the sale and purchase of the property. There are for example, FF & E Reserves (for replacing furniture, fittings and equipment). These are held in connection with apartments leased to hotel or serviced…

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