First steps towards resolving Auckland’s housing crisis

Auckland’s housing crisis is arguably one of the most pressing issues of our time. In response, a group of 130 public and private sector industry stakeholders met at a not-for-profit gathering, on 1 August 2017 – the first Auckland Housing Summit.  The Summit was organized by a group of five key players: Leonie Freeman –…

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Unit Titles Review 2017

Just before Christmas MBIE announced a review of the Unit Titles Act 2010 and published a discussion document. Submissions on the proposals were due 5pm Friday, 3 March 2017.  Many submissions have been made, including one from us that looks at the changes predominantly from the developer’s perspective. The items subject to review include the…

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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. These allowed guests to stay for a short term, booked via the Airbnb website.   The case went first to the…

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Consultant’s Agreements, Short Form Agreements and Liability Limits

A recent case considered whether or not the model IPENZ – ACENZ Short Form Agreement was incorporated into a contract between a client and an engineering firm.  This was important because negligence had been alleged.  If the short form applied it included a limitation of the engineer’s liability to $100,000.00. On the facts of the…

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Kiwisaver – Guide for first home buyers

KiwiSaver – 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…

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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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Changes to the standard agreement for sale and purchase of real estate

The 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…

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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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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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Information collection – the impact on property developers

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…

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Bodies corporate, guarantees and amenities – developer’s duties

Body 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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