Don’t make Council’s problem yours

Earlier this year the Christchurch Council lost its accreditation as a building consent authority.  It failed to meet criteria necessary for the accreditation.  However the Council has continued to issue building consents and government has maintained the view that the loss of accreditation does not affect the ability of the Council to issue consents. This…

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What to look out for when buying apartments off the plans

The increasing demand for housing in Auckland has fueled a return of residential apartment developments. The availability of affordable apartments could be seen as a welcome relief to those struggling to get their foot in the rising Auckland property market. There are a number of issues that any party buying an apartment off the plans…

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Attention Auckland real estate agents

Introducing propertyROOM.co.nz A way to ensure potential buyers of residential property receive proper explanations about issues in the title and LIM reports.  Read more about the propertyROOM here. Do you remember the story about a real estate agent, a sale and a land covenant?  (LB and QB v The Real Estate Agents Authority & Li…

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Compulsory Zero Rating

A recent proliferation of webinars on the new agreement for sale and purchase and GST has raised some interesting points. Zero rating will still apply to the sale of a taxable supply but the sale and purchase of land now requires the parties to examine their GST positions and determine whether the transaction is compulsorily…

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Supreme Court decision on Blue Chip and the Securities Act

The recent Blue Chip Supreme Court decision will come as a huge relief to families up and down New Zealand.  An argument had been made on behalf of numerous investors in Blue Chip schemes that Blue Chip had breached the requirements of the Securities Act.  In signing up mum and dad investors across the country…

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Cross-lease vs fee simple

Fee simple Fee simple ownership is true exclusive ownership and possession of the land and buildings on it. It’s ownership of what is below and above the ground (as is reasonable). Yes, others do get a say – for example the neighbours might have a say over fences; Council in terms of compliance with the District Plan…

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New agreement for sale and purchase

We have set out below a short summary of the changes in the new 9th edition.  There are some changes specific to unit titles and commercial transactions, which we cover separately.  The first section is potentially relevant to all agreements.  There is a lot to take in.  Some of the changes assist vendors, and some purchasers,…

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Conveyancing and sinking funds

Sinking funds are common in the management of commercial property. Increasingly they need to be considered in residential developments when dealing with the sale and purchase of the property. There are for example, FF & E Reserves (for replacing furniture, fittings and equipment). These are held in connection with apartments leased to hotel or serviced…

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Selling off the plans – what’s new

For the first time in a very long while pre-sale contracts for residential properties are hitting the market.  Residential developers and their banks have been keeping a low profile these last few years but things are beginning to change.  Changes in the law means there are some new things to look out for in agreements…

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Defective Titles 3 – 0

There have been a spate of recent cases about requisitions.  That is, purchasers objecting to defective titles.  This can be relevant to any agreement for sale and purchase of land, but it is especially relevant where there is a pre-sales contract for land or apartments. The two most recent cases concerned covenants that were registered…

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Warranty vs due diligence

On 28 March 2007 Mr and Mrs Singh, experienced orchardists, signed up to purchase a lemon and kiwifruit orchard in Glenbrook.  The standard form of agreement for sale and purchase of real estate was used.  A due diligence clause was inserted, giving the purchaser 5 working days to satisfy itself as to a "due diligence…

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