Gift duty is no more!

The new gifting regime was ushered in on 1 October 2011.  Does this mean no more annual gifting programme, no more acknowledgements of debt or deeds of forgiveness or gifting statements?  Maybe, and then maybe not.  Before gifting assets there are some things to consider.  Take time to think about whether the gift remains a good…

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Destruction and leases (again)

There has been another case in relation to the ADLS standard lease clause, which provides the term of a lease shall at once terminate if there is destruction or damage rendering the premises untenantable.  We wrote about an April 2011 decision of the Auckland High Court following a fire in Kingsland (see Destruction and leases).  The latest decision was…

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Void Purchase Agreement – A Good Reason Not To Settle?

A number of property subdivisions completed within the last 2 or 3 years were originally pre-sold at levels well above market value at the time of settlement.  This is no surprise to any of us who have lived through the GFC and its impact on the property and finance sector in New Zealand.  As a…

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Earthquake Prone Buildings in Auckland

 Earthquakes in Auckland are a rare occurrence, despite us having had one last month.  What happened in Christchurch has got everyone thinking though, not least of all the lawmakers and there are new rules to be adhered to in relation to our buildings and whether they are strong enough. Auckland Council has just released its…

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You snooze, you lose – RMA and the developer

Agreements for sales off the plans will include sunset clauses – or "twilight" clauses as a client called them the other day.  I like that new name it seems more accurate somehow.  They will also be subject to s225 of the Resource Management Act.  It is an interesting section, aimed at protecting the purchaser.  First it gets…

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Can a lessor refuse to renew?

A lessor must tread very carefully when considering the position of a lessee who has not yet exercised its right to renew the lease.  The Property Law Act 2007 assists a lessee by providing relief in two situations where a right of renewal would otherwise be lost: • Where the lessee has breached a condition precedent to…

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Development funding anyone?

The changes to the NZ investor migrant policy that we flagged a couple of months ago have just been made operative.  This should be of interest to developers seeking development funding.  Migrants can now invest in residential property developments in order to secure residency.  Residential property development has been added as an “acceptable investment” for migration…

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You must read this if you are selling a unit title property

Many agreements being signed now will be subject to the new seller’s disclosure regime. Agreements for sale and purchase for a unit title property will be subject to the new disclosure regime if entered into before 20 June with settlement after 27 June 2011.  Agreements entered into on or after 20 June are also subject…

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Invalid cancellation of lease

Lessors are encouraged to take a lot of care and attention when cancelling leases under the Property Law Act 2007. The Supreme Court’s decision on 10 May 2011 in Ingram & Knee v Patcroft Properties Limited shows that care and attention is very important. The lessor was held liable to pay damages to the lessee…

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Bodies Corporate – who pays for what?

Unit entitlements In the past all body corporate levies have been assessed on unit entitlements.  Because unit entitlements are based on value, historically different owners using the same facilities could be required to contribute to costs to differing extents.  This system was criticised as being unfair and imposing an irrelevant assessment model on costs.  In…

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Compulsory GST zero rating – new GST rules

What is CZR? From 1 April 2011 it became compulsory for certain land transactions to be compulsory zero rated (CZR).  This means that GST will be charged at the zero percent.  The regime will apply to almost all transactions involving land that are made between GST registered parties.  There are some limited exclusions.   It is…

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Destruction and leases

What is happening in Christchurch is impacting on the New Zealand property industry in all sorts of ways.  One of these is the debate regarding contractual obligations between the parties.  Most leases inadequately deal with the situation in Christchurch.  Whilst they may deal with partial destruction and total destruction they do not adequately cover many…

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