Vendors registered for GST who signed a contract for the sale before 1 October 2010 and for whom settlement has not yet occurred may find some comfort in section 78 of the Goods and Services Tax Act 1985. That section makes it clear that where the GST rate is changed at law every agreement is…
DetailsThe UTA2010 requires 3 disclosure statements to be given by the seller of a unit to a buyer of a unit. These are: • The pre-contract disclosure statement – to be given before an agreement for sale and purchase is entered into • The pre-settlement disclosure statement – to be given no later than 5 working days before settlement…
DetailsThe long awaited LAQC reforms have finally been released. The gist is that LAQC owners will be given the option to become a new “look-through company” where profits & losses will flow to owners or transition to a sole trader, partnership or limited partnership. If no election to take up these options is made, the…
DetailsThe warranty was that “all obligations under the Building Act 1991 were fully complied with” as at the date possession was granted. Although the warranty only applied if the vendor had done works, a recent case has shown that the reach of the warranty may be further than people had expected. The Court of Appeal…
DetailsYou will recall that a lessor cannot unreasonably withhold or delay consent to an assignment, sublease or change of use if there is a covenant in the lease requiring the lessee to first obtain the lessor’s consent. A lessor who unreasonably withholds consent or delays can be held responsible for damages. We have lived with these…
DetailsIndependent Witnesses – What the Law Requires Statute imposes specific obligations on how a power of attorney is to be signed and witnessed. In 2008 changes were made to the legislation that enabled the giving of enduring powers of attorney. The changes were intended to protect the people granting powers of attorney from being coerced…
DetailsJust what does happen to insurance money if your unit title is damaged and a claim is made on insurance? There is a statutory obligation on each body corporate to insure all buildings and other improvements for replacement value. The insurance must cover demolition costs and architects fees and must relate to damage caused by:…
DetailsCan a lessor be made to review the rent? Under the modern standard form leases, yes they can. From the ADLS 4th edition (2002) lease onwards, the standard ADLS deed of lease allows either party to initiate a rent review. Those standard leases also include a soft ratchet, i.e. on a rent review the rent…
DetailsPurchasers often nominate a third party to perform the obligations under an agreement for sale and purchase. They flag their intention to do so by using the words “and/or nominee” on the front of the agreement. The standard form agreement makes it clear that even if the purchaser signs the agreement with provision for…
DetailsDoes land need to be insured? In most funding we do lenders do not insist on this. Most developers have contract works cover in place whilst involved in constructing infrastructure on the land (often through the contractors), but once that work is complete most don’t take out any additional insurance from what we have seen. Events in Canterbury last…
DetailsThis is a brief look at body corporate rules found to be ultra vires by the Court to date. Ultra vires is latin for "beyond the powers". These are body corporate rules that go beyond those allowed under the Unit Titles Act 1972. You can expect a similar approach from the Courts to rules under the Unit Titles Act…
DetailsThe next time you pick up an agreement for sale and purchase of real estate, chances are it will be the latest version (eighth edition 2006(3)) jointly released by the REINZ and the Auckland District Law Society last week. Compensation clause The new agreement introduces a process to be followed before a purchaser is entitled…
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