Invalid cancellation of lease

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…

Details

Overseas investors and residential property

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…

Details

Bodies Corporate – who pays for what?

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…

Details

Unit Titles Act 2010 Developers and Disclosure

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…

Details

Compulsory GST zero rating – new GST rules

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…

Details

Destruction and leases

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…

Details

Are body corporate management contracts ultra vires?

We have written previously about body corporate rules considered ultra vires by the Courts.  Contracts entered into beyond the powers conferred by the body corporate rules will be void and unenforceable.  On 21 February 2011 the High Court gave its judgement as to whether or not the body corporate secretarial services contract and management contract…

Details

Are body corporate management contracts ultra vires?

We have written previously about body corporate rules considered ultra vires by the Courts.  Contracts entered into beyond the powers conferred by the body corporate rules will be void and unenforceable.  On 21 February 2011 the High Court gave its judgement as to whether or not the body corporate secretarial services contract and management contract…

Details

Unit Title regulations

The start date for the new Unit Titles Act draws ever closer but remains unknown. We are still waiting on regulations that are needed to make the Act workable. The NZ Law Society was recently involved in discussions with the Department of Building and Housing regarding just what the regulations will say. Those discussions are confidential but there…

Details

New tender form

Real estate agents have commonly had their own form of tender conditions. The tender conditions were generally similar and most included terms of sale very close to the ADLS/REINZ form of agreement for sale and purchase.  A new standard tender form is welcome.  In a tender there are two contracts.  The first contract is the tender process…

Details

The Reasonable Landlord

 A recent enquiry about a landlord unreasonably withholding consent raised some interesting issues.  The query related to a proposed change of use under a lease.  A change of use can be prohibited in lease.  However, if it is allowed with the consent of the landlord, the landlord must be reasonable in determining whether or not to give…

Details