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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Tax collection

Next 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…

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Contract terms unfair?

Standard 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…

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Body corporate consent to use common property?

The 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…

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The new two year rule

It 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…

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Unit Titles and Leasing

Leasing 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…

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