Developers and Retentions under Construction Contracts

We have mentioned previously that the rules relating to retentions under contracts covered by the Construction Contracts Act 2002 are changing.  From 31 March 2017 retention money withheld under commercial construction contracts must be held on trust.  This is intended to apply only to contracts entered into or renewed on or after 31 March (presuming…

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Airbnb and Leases

The Supreme Court of Victoria was recently asked to consider whether or not a tenant under a residential tenancy was in breach of the provisions of the lease by entering into contracts with Airbnb and allowing guests to stay for a short term, booked via the Airbnb website. The case went firstly to the Victorian…

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Leases – Setoff Against Outgoings

A recent decision Drake City Limited v DJ Tasman-Jones & Anor (High Court, Auckland 20 December 2016) concerned a lease for one of the restaurants in the Victoria Park Market precinct.  There were arrears under the lease and the tenant had gone into liquidation.  The guarantors were being pursued for sums due.  These included unpaid…

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Kiwisaver – Guide for first home buyers

Kiwisaver – First Home Withdrawal First home buyers may be entitled to apply for a first home withdrawal to purchase their first house.  A first home buyer is an individual who has not owned a house or land before either in New Zealand or overseas.  The following will apply: You have been a member of…

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Residential Land Withholding Tax

From 1 July 2016 lawyers will need to deduct Residential Land Withholding Tax from the proceeds of some residential property sales and pay it to the IRD. This is the new tax that is intended to help compliance with the residential investment property tax rules. When is tax withheld? The withholding tax will only apply…

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Fee funding if you are unable to pay your bill

If you are unable to pay our fees by the due date, we now offer a fee funding opportunity.  You can take up this opportunity with QuickFee. You simply go “Pay our Bill” on our home page.  Enter the invoice number and amount.  You can then choose monthly instalments by direct debit or by credit…

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Body corporates and notices of EGM and AGM

The meaning of a requirement in the Unit Title Regulations to give “at least 1 weeks’ notice” to owners of an extraordinary general meeting (EGM) has been determined by the High Court in a decision on 29 April 2016.   Notice of EGM was given by the York Street Apartments Body Corporate on Wednesday the…

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How many lots?

It is critical to draft society rules and land covenants correctly. In this case we look at how a proposed subdivision of a lot on a residential development, lead to High Court examination of a society’s rules. Example case The High Court was asked to issue a declaratory judgement by an Incorporated Society. It wanted to…

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Construction Contracts – 3 key dates

1 December 2015 – Payment Claims There is now no distinction between a residential and a commercial construction contract (with the exception of charging orders).  All payment claims issued by a contractor must attach Form 1 from the Construction Contracts Regulations 2015 to be a valid payment claim under the Construction Contracts Act (CCA).  You…

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LIMs obtained by others

If you are purchasing a property you must obtain you own LIM.  It’s not new advice, but the Courts have provided another reminder why it is important.  The same goes for a PIM if you are developing/building. The recent case of Monticello Holdings Limited v Selwyn District Council 2015 NZHC 1674 confirms that if you…

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