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…
DetailsMany 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…
DetailsWe 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…
DetailsLessors 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…
DetailsUnit 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…
DetailsWhat 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…
DetailsWhat 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…
DetailsUnit 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…
DetailsHere is a recent newspaper article discussing layered developments under the Unit Titles Act. Debra Dorrington (If you would like to hear when our next webinar on The Unit Titles Act 2010 will be, go to www.alexanderdorrington.co.nz/webinars)
DetailsReal 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…
DetailsThe 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…
DetailsWe 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…
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