IRD numbers You will have read of the upcoming changes in the law – that affect the sale and purchase of land. These come into effect on 1 October. If the buyer is an individual or a couple buying their main home in their own name and they are not an "overseas person" they are…
DetailsNext year lawyers will be required to retain tax on sale proceeds and pay the tax straight to the Inland Revenue Department. They will need to do this when: • an off-shore person (some Kiwis will be caught) • sells residential land • they have acquired since 1 October 2015 • that have held for…
DetailsStandard form contracts used in residential property development breach the Fair Trading Act 1986 if they are a consumer contract that contains “unfair terms”. This was part of the changes to consumer law that applies to contracts from 17 March 2015. This might be relevant to: Residential building contracts Agreements for sale of a property…
DetailsThe Quays Body Corporate in Auckland (Body Corporate 198900) was recently before the High Court trying to get a declaration that the awnings erected by various bars that occupied the ground floor units should be removed at the cost of those owners. As the Court noted in its judgment dated 10 July 2015 “This issue…
DetailsBody Corporate 401803 (the 103 Tremont apartment complex in St Lukes, Auckland) has recently been to the Court of Appeal. At issue was the validity of guarantees given by the body corporate to third parties under leases of 3 units – the manager’s apartment, the swimming pool, tennis courts, gymnasium and other amenities. Between June…
DetailsIt is proposed to make the profits on sales of residential property taxable if sold within two years of acquisition, subject to certain limited exceptions. There will be no "purpose" or "intention test" to determine whether profits are taxable, as is presently the case. This is not law yet but it seems very likely it…
DetailsLeasing unit titles is more complex than other forms of leasing. The Unit Titles Act 2010 (UTA) and the body corporate operational rules will prevail over the lease. The landlord might only have a very small say in how that plays out. This depends on their individual voting power. There is another layer of rights…
Details"It’s the death of common sense" he said leaning on my doorframe, frustration etched on his face. This was the third visit – trying to provide information to the bank suitable to meet anti-money laundering requirements; – so he could get online access to a bank account. Ronald* (*name changed for issues of privacy and…
DetailsIn the past proxies were commonly used in the unit title setting. Developers would provide for them in sale contracts. Property managers would include them in leases of serviced apartments. It gave the developers and the managers the opportunity to control decisions made by the body corporate. These provisions are now of little use given…
DetailsThe Commerce Commission has long been the watchdog for consumers purchasing goods and services in New Zealand. Part of their role is to protect consumers from traders or sellers who engage in unfair or deceptive conduct. Historically this has involved monitoring activity such as collusion between firms and price fixing, which leads to a hike…
DetailsChanges to the Building Act came into force on 1 January 2015. All builders who carry out residential work, whether demolition, new build or renovations, building a new fence or retaining wall (or doing any other "building work") need to ensure they are meeting these new requirements. Written contracts are now required for residential building…
DetailsIn August last year the law relating to development contributions changed. They were aimed at making the regime easier to navigate and the costs easier to predict. A New Zealand Law Society seminar outlined the changes. Here are some pointers to take from the presentation: • the purpose of the development contributions is to enable…
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