Rent reviews – may or shall…

Can 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…

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Or Nominee or Not

Purchasers 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…

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Insuring private infrastructure

Does 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…

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Which body corporate rules are ultra vires?

This 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…

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New Agreement for Sale and Purchase of Real Estate

The 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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Transition under the Unit Titles Act 2010

Once the UTA 2010 commences, there are transitional arrangements that apply for 15 months.  This is a short summary of the options, useful for a body corporate secretary/manager. Body corporate rules – a body corporate can either keep its existing Schedule 2/Schedule 3 rules or elect for the rules to be replaced with the operational rules under…

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New Agreement for Sale and Purchase of Real Estate

The 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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New Agreement for Sale and Purchase of Real Estate

The 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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Buying a Unit Title

 A potential purchaser recently asked just what they should look out for when buying a unit title.  I am sure they did not expect a list that was quite as long as I had in my mind but there are a lot of things to take into account.  Here is a summary of some of…

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Getting to know the new Unit Titles Act.

 Today we ran our first webinar introducing  the Unit Titles Act.  It was aimed at those who have a body corporate secretary role and examined the requirements of the transitional provisions.  We will be running more webinars over the months to come.  If you would like to be told when they are scheduled click here…

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Subdivisions, minimum areas and cancellation of contracts

 The Supreme Court decision in Mana Property Trustee Limited v James Developments Limited gives some useful advice about minimum area clauses which developers/purchasers entering pre-sales contracts should consider.  This case is also useful when considering what to do when there is a breach of an essential term in an agreement for sale and purchase. The Court found for the…

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