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…
DetailsKiwiSaver – First Home Withdrawal Do you qualify? 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…
DetailsFrom 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…
DetailsThe 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…
DetailsIt 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…
Details1 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…
DetailsIf 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…
DetailsThe year starts with a reviewed ADLSi/REINZ Ninth Edition 2012 (3) form of agreement for sale and purchase of real estate. The important changes to note are: Tax statement clauses are added to ensure vendors and purchasers comply with rules introduced 1 October 2015 and requiring tax statements to be lodged at LINZ prior…
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…
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…
DetailsIRD 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…
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…
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