Law Matters
Monthly legal newsletter that aims to provide our key clients with updates on legal matters and issues relevant to them.
DECEMBER 2011
UNIT TITLES ACT 2010 - A BODY CORPORATE MUST DO! This month we bring you another must do in relation to the Unit Titles Act 2010 (the Act). No doubt this has already been taken care of, but we remind you that all bodies corporate must have their first AGM following the enactment of the Act by 20 December 2011....
LIABILITY UNDER THE BUILDING ACT - THE GIFT THAT (POTENTIALLY) KEEPS ON GIVING AND GIVING Limitation Act Generally (there are always eceptions!) the Limitation Act 2010 imposes a six year limitation period on claims. One exception is where the defect is latent and is not discovered until after the six year period has expired....
EMPLOYMENT LAW - Take Employment Penalties Seriously Earlier this year, the maximum penalties under the Employment Relations Act (ERA) doubled. Employers should expect that penalties imposed by the Court or Authority will increase significantly. Also, it seems that the ERA will take a more proactive approach in recovering penalties.... [request]
LIABILITY UNDER THE BUILDING ACT - THE GIFT THAT (POTENTIALLY) KEEPS ON GIVING AND GIVING Limitation Act Generally (there are always eceptions!) the Limitation Act 2010 imposes a six year limitation period on claims. One exception is where the defect is latent and is not discovered until after the six year period has expired....
EMPLOYMENT LAW - Take Employment Penalties Seriously Earlier this year, the maximum penalties under the Employment Relations Act (ERA) doubled. Employers should expect that penalties imposed by the Court or Authority will increase significantly. Also, it seems that the ERA will take a more proactive approach in recovering penalties.... [request]
NOVEMBER 2011
GIFT DUTY ABOLITION: WHAT'S CHANGED? Legislation to abolish gift duty has been passed. But has anything really changed? The practical effect means that any amount can be gifted in one lump sum to reduce trust debt without attracting gift duty. But, there are still a number of issues that need to be considered when gifting....
BODY CORPORATE: MAINTENANCE OBLIGATIONS "Hi Taff, this is a crazy situation. Can we not get away from the Unit Titles Act?" So started a recent email from a retired lawyer, exasperated over the maintenance provisions in the Unit Titles Act 1972. The problem concerns a friend who lives in the last unit of a row of three. A storm water system runs underground...
UNSOLICITED ELECTRONIC MESSAGES ACT 2007: FACSIMILES From 20 October 2011 facsimiles have been removed from the list of exempt electronic messages and are now caught by the Act.... [request]
BODY CORPORATE: MAINTENANCE OBLIGATIONS "Hi Taff, this is a crazy situation. Can we not get away from the Unit Titles Act?" So started a recent email from a retired lawyer, exasperated over the maintenance provisions in the Unit Titles Act 1972. The problem concerns a friend who lives in the last unit of a row of three. A storm water system runs underground...
UNSOLICITED ELECTRONIC MESSAGES ACT 2007: FACSIMILES From 20 October 2011 facsimiles have been removed from the list of exempt electronic messages and are now caught by the Act.... [request]
OCTOBER 2011
IS EVERYTHING WE DO NOW TAX AVOIDANCE? The recent decision in Penny and Hooper v Commissioner of Inland Revenue has put the spotlight on company and trust structures being used for what the Inland Revenue Department might describe as tax avoidance structures....
EARTHQUAKE COVER: LESSONS FOR LANDLORDS & TENANTS As a result of the Canterbury earthquakes many tenants have been left in an unenviable position. Buildings which they previously occupied were and are structurally undamaged. However, access to these buildings was and remains prohibited...
KIDS JAM FOR KIWI CAN Knight Coldicutt is a proud supporter of The Auckland Kiwi Can Trust. http://www.kiwican.org.nz click here to view more... We had the privilege of attending the recent annual Kiwi Can Jam. From hula hoop to hip hop to haka - crowds from across South Auckland were treated to a dance spectacular...
RMA: "IT'S NOT OUR FAULT - OUR HANDS ARE TIED!" So said our political masters. On 15 September 2011 the New Zealand Property Group (NZPG) hosted a Resource Management Act political debate. The National Party was represented by Nicky Wagner and David Parker represented Labour. Also in the audience were Kath McCabe, ACT Party, and David Hay, Greens. The discussion centred on excessive regulation by councils... [request]
EARTHQUAKE COVER: LESSONS FOR LANDLORDS & TENANTS As a result of the Canterbury earthquakes many tenants have been left in an unenviable position. Buildings which they previously occupied were and are structurally undamaged. However, access to these buildings was and remains prohibited...
KIDS JAM FOR KIWI CAN Knight Coldicutt is a proud supporter of The Auckland Kiwi Can Trust. http://www.kiwican.org.nz click here to view more... We had the privilege of attending the recent annual Kiwi Can Jam. From hula hoop to hip hop to haka - crowds from across South Auckland were treated to a dance spectacular...
RMA: "IT'S NOT OUR FAULT - OUR HANDS ARE TIED!" So said our political masters. On 15 September 2011 the New Zealand Property Group (NZPG) hosted a Resource Management Act political debate. The National Party was represented by Nicky Wagner and David Parker represented Labour. Also in the audience were Kath McCabe, ACT Party, and David Hay, Greens. The discussion centred on excessive regulation by councils... [request]
SEPTEMBER 2011
WHO OWNS THE VERANDAH? BC 95035 v CHANG Body Corporate 95035 applied for a declaration as to the ownership of the verandah affixed to a 7-storey building at 2 Queen Street, Auckland. The verandah is in poor repair with an estimated repair bill of $500,000. In 1982 the building was subdivided into unit titles and the body corporate was established. Fast forward to 2010... 16 years after the redevelopment of the building...
UNIT TITLES - PRE-CONTRACT AND PRE-SETTLEMENT DISCLOSURE Following articles in recent issues of Law Matters regarding the changes introduced by the Unit Titles Act 2010 (UTA), we now bring you more details in relation to the compulsory Pre-contract and Pre-settlement Disclosure Statements.
[request]
UNIT TITLES - PRE-CONTRACT AND PRE-SETTLEMENT DISCLOSURE Following articles in recent issues of Law Matters regarding the changes introduced by the Unit Titles Act 2010 (UTA), we now bring you more details in relation to the compulsory Pre-contract and Pre-settlement Disclosure Statements.
[request]
JULY 2011
GST - COMPULSORY ZERO RATING In earlier editions of Law Matters we foreshadowed the 1 April introduction of new GST rules providing for the Compulsory Zero Rating (CZR) of 'business to business' land transactions. There are several key points to bear in mind when entering contracts for the sale of commercial property under these new rules....
THE UNIT TITLE ACT : PRE-CONTRACTUAL DISCLOSURE Unit Title owners take note - if you are thinking of selling your unit, the documentation just got a little harder! New changes introduced on 20 June 2011 mean that a pre-contractual disclosure statement must be attached to every Agreement for Sale and Purchase for the sale of a Unit Title property....
THE UNIT TITLE ACT : LAYERED DEVELOPMENTS One of the aims of the new Unit Titles Act 2010 is to repeal and replace the outdated 1972 Act in order to cater sufficiently for multi unit developments, particularly in the Auckland region. A new concept introduced by the Act relevant to property developers is the introduction of layered developments....
CONDITIONS - THE OBJECTIVE AND SUBJECTIVE TESTS "It is the stars. The stars above us, govern our conditions." - William Shakespeare. Back in the day the Bard may have been right, but today many sale and purchase agreements contain conditions that are governed by the satisfaction or discretion of one of the parties. How these clauses are drafted can have a huge impact on the extent of that discretion.... [request]
THE UNIT TITLE ACT : PRE-CONTRACTUAL DISCLOSURE Unit Title owners take note - if you are thinking of selling your unit, the documentation just got a little harder! New changes introduced on 20 June 2011 mean that a pre-contractual disclosure statement must be attached to every Agreement for Sale and Purchase for the sale of a Unit Title property....
THE UNIT TITLE ACT : LAYERED DEVELOPMENTS One of the aims of the new Unit Titles Act 2010 is to repeal and replace the outdated 1972 Act in order to cater sufficiently for multi unit developments, particularly in the Auckland region. A new concept introduced by the Act relevant to property developers is the introduction of layered developments....
CONDITIONS - THE OBJECTIVE AND SUBJECTIVE TESTS "It is the stars. The stars above us, govern our conditions." - William Shakespeare. Back in the day the Bard may have been right, but today many sale and purchase agreements contain conditions that are governed by the satisfaction or discretion of one of the parties. How these clauses are drafted can have a huge impact on the extent of that discretion.... [request]
JUNE 2011
LEASE INCENTIVES - CAPITAL CONTRIBUTIONS AND TAXATION IMPLICATIONS FOR TENANTS Landlords commonly entice proposed tenants into entering into a lease by using varying incentives. One incentive frequently used is a cash contribution by a landlord towards the completion of a fit out by a tenant....
HILTON QUEENSTOWN (Opinion Kerry Knight) I visited the Hilton in Queenstown just before it opened a couple of weeks ago. It is probably the most luxurious hotel in Australasia, sitting spectacularly on the edge of Lake Wakatipu. During its planning and contruction I, like many others, was openly critical...
WE GUARANTEE OUR WORKMANSHIP We often see the phrase "we guarantee our workmanship", but it's hard to understand what it actually means. A guarantor is usually a third party who stands in for the original contracting party if they don't perform. However when a business or service states "we guarantee our workmanship" it effectively means...
[request]
HILTON QUEENSTOWN (Opinion Kerry Knight) I visited the Hilton in Queenstown just before it opened a couple of weeks ago. It is probably the most luxurious hotel in Australasia, sitting spectacularly on the edge of Lake Wakatipu. During its planning and contruction I, like many others, was openly critical...
WE GUARANTEE OUR WORKMANSHIP We often see the phrase "we guarantee our workmanship", but it's hard to understand what it actually means. A guarantor is usually a third party who stands in for the original contracting party if they don't perform. However when a business or service states "we guarantee our workmanship" it effectively means...
[request]
APRIL 2011
KNIGHT COLDICUTT LIMITED After 52 years of being a partnership, we are very pleased to inform you that from 1 April 2011 Knight Coldicutt will become a limited liability company. This is happening for several reasons....
EXERCISE IN CLARIFICATION - GST AND COMMERCIAL DWELLINGS From 1 April 2011 new rules will apply to the GST treatment of commercial dwellings. Currently, accommodation provided by GST registered entities is subject to GST unless it is supplied in a residential dwelling....
REMINDER - NEW RULES FOR GST ON THE SALE OF COMMERCIAL PROPERTY In our November 2010 issue of Law Matters we talked about the anticipated introduction of compulsory zero-rating (CZR) of GST on the sale of commercial property. This policy has now been passed into law with new rules to apply from 1 April 2011....
[request]
EXERCISE IN CLARIFICATION - GST AND COMMERCIAL DWELLINGS From 1 April 2011 new rules will apply to the GST treatment of commercial dwellings. Currently, accommodation provided by GST registered entities is subject to GST unless it is supplied in a residential dwelling....
REMINDER - NEW RULES FOR GST ON THE SALE OF COMMERCIAL PROPERTY In our November 2010 issue of Law Matters we talked about the anticipated introduction of compulsory zero-rating (CZR) of GST on the sale of commercial property. This policy has now been passed into law with new rules to apply from 1 April 2011....
[request]
FEBRUARY 2011
DEATH OF THE LAQC Things Just Aren't What They Used To Be In keeping with the correct commercial advice of the time, many property investors created Loss Attributing Qualifying Companies (LAQCs) as the ownership vehicle for investment properties. This took advantage of the tax losses...
GIFT DUTY An Archaic Tax To Be Abolished The Government has announced that it is abolishing gift duty from October 2011. Gift duty was introduced in 1885 to protect estate duty by discouraging people from giving away their assets before they died, and also to raise revenue. Estate duty was abolished in 1992...
EMPLOYMENT RELATIONS Good Faith & Taking Notes If you only remember two things about the Employment Relations Act 2000 (ERA), the first is the duty to act in good faith. The second is always to have a written agreement. Acting in good faith is a statutory duty. Employers, employees and unions must deal with each other honestly... [request]
GIFT DUTY An Archaic Tax To Be Abolished The Government has announced that it is abolishing gift duty from October 2011. Gift duty was introduced in 1885 to protect estate duty by discouraging people from giving away their assets before they died, and also to raise revenue. Estate duty was abolished in 1992...
EMPLOYMENT RELATIONS Good Faith & Taking Notes If you only remember two things about the Employment Relations Act 2000 (ERA), the first is the duty to act in good faith. The second is always to have a written agreement. Acting in good faith is a statutory duty. Employers, employees and unions must deal with each other honestly... [request]
DECEMBER 2010
2011 - KEEP YOUR SEATBELTS FASTENED It's that timeof year again when we predict what the next twelve months will bring. This time last year my prediction was that the recession would be long forgotten by now with SuperCity, Rugby World Cup, increased immigration and the housing shortage contributing to fuelling an economic comeback....
STILL WAITING FOR YOUR GST REFUND? HOW LONG CAN IT TAKE? The Supreme Court in Contract Pacific Limited v Commissioner of Inland Revenue has effectively decided that a tax payer will, in certain circumstances, wait indefinitely for a GST refund....
LEASEHOLD - EVIL OR GOOD In the good old days leasehold was commonplace in the eastern suburbs and other parts of Auckland City, but that was when our population and land values were fairly constant. As people didn't have to fund the land component, leasehold was a great way of entering the housing market....
WHEN ARE ESSENTIAL TERMS ESSENTIAL? Contracts can be cancelled if a party has breached an essential term. However, for many years the problem has been ascertaining what amounts to an essential term. The Supreme Court's decision in a recent case...
DISPUTES AND GETTING THEM SORTED OUT Disputes happen. When you get tangled up in a situation that seems to be deteriorating there are a number of different appraoches you can take. One of the most common key resons that things spiral out of control...
[request]
STILL WAITING FOR YOUR GST REFUND? HOW LONG CAN IT TAKE? The Supreme Court in Contract Pacific Limited v Commissioner of Inland Revenue has effectively decided that a tax payer will, in certain circumstances, wait indefinitely for a GST refund....
LEASEHOLD - EVIL OR GOOD In the good old days leasehold was commonplace in the eastern suburbs and other parts of Auckland City, but that was when our population and land values were fairly constant. As people didn't have to fund the land component, leasehold was a great way of entering the housing market....
WHEN ARE ESSENTIAL TERMS ESSENTIAL? Contracts can be cancelled if a party has breached an essential term. However, for many years the problem has been ascertaining what amounts to an essential term. The Supreme Court's decision in a recent case...
DISPUTES AND GETTING THEM SORTED OUT Disputes happen. When you get tangled up in a situation that seems to be deteriorating there are a number of different appraoches you can take. One of the most common key resons that things spiral out of control...
[request]
NOVEMBER 2010
NEW GST RULES FOR THE SALE OF COMMERCIAL PROPERTY A bill currently before parliament will simplify the GST treatment of many property sales by zero rating practically all business to business sales of land. Currently before Parliament is the Taxation (GST and Remedial Matters Bill...
GIVING TO CHARITY How often are you called at home in the evenings, or met by someone on the street who is fundraising and wants you to make a donation, or to buy something in the name of a charity? All the time! I usually ask these people whether they are being paid...
TRUSTS: IT'S A WAR OUT THERE AND THE WORLD OF AN INDEPENDENT TRUSTEE IS CHANGING Trusts are widely used in New Zealand. They are administered by the Inland Revenue Department as if they are separate entities. The difficulty is that, with the economic downturn, trusts are under attack worldwide... [request]
GIVING TO CHARITY How often are you called at home in the evenings, or met by someone on the street who is fundraising and wants you to make a donation, or to buy something in the name of a charity? All the time! I usually ask these people whether they are being paid...
TRUSTS: IT'S A WAR OUT THERE AND THE WORLD OF AN INDEPENDENT TRUSTEE IS CHANGING Trusts are widely used in New Zealand. They are administered by the Inland Revenue Department as if they are separate entities. The difficulty is that, with the economic downturn, trusts are under attack worldwide... [request]
OCTOBER 2010
SEPTEMBER 2010
ASSOCIATED PERSONS - THAT WAS THEN; THIS IS NOW
LOVE THY NEIGHBOUR
SHAKEN NOT STIRRED
THE GST INCREASE
[request]
LOVE THY NEIGHBOUR
SHAKEN NOT STIRRED
THE GST INCREASE
[request]
AUGUST 2010
JULY 2010
UPDATE: UNIT TITLES ACT 2010
WHAT DO YOU DO IF YOU ARE OFFERED AN INCENTIVE THAT YOU CAN'T REFUSE?
OPINION: THE MEDIA BECOMES PUBLIC OPINION
[request]
WHAT DO YOU DO IF YOU ARE OFFERED AN INCENTIVE THAT YOU CAN'T REFUSE?
OPINION: THE MEDIA BECOMES PUBLIC OPINION
[request]
JUNE 2010
OBLIGATIONS OF PROFESSIONAL TRUSTEES
LAND INFORMATION MEMORANDUM (LIM REPORTS)
OPINION: THE PROPERTY MARKET TAKES A CUP OF TEA
[request]
LAND INFORMATION MEMORANDUM (LIM REPORTS)
OPINION: THE PROPERTY MARKET TAKES A CUP OF TEA
[request]
MAY 2010
APRIL 2010
A TRAVESTY OF JUSTICE
THE IMPORTANCE OF PAYING A MARKET SALARY
UPDATE: UNIT TITLES BILL PASSES INTO LAW [request]
THE IMPORTANCE OF PAYING A MARKET SALARY
UPDATE: UNIT TITLES BILL PASSES INTO LAW [request]
MARCH 2010
FEBRUARY 2010
IT'S SIMPLE - GOOD SERVICE IS WHAT YOU WANT
PROPOSED GST DOMESTIC REVERSE CHARGE - A GOOD IDEA?
[request]
PROPOSED GST DOMESTIC REVERSE CHARGE - A GOOD IDEA?
[request]
DECEMBER 2009
SETTLEMENT NOTICE SERVICE
CHANGES TO THE DISTRICT COURT PROCESS
FIXED FEES - MORE BANG FOR YOUR BUCK
[request]
CHANGES TO THE DISTRICT COURT PROCESS
FIXED FEES - MORE BANG FOR YOUR BUCK
[request]
NOVEMBER 2009
INCOME TAX ACT - NEW ASSOCIATED PERSONS RULES
OPINION: WHERE WILL NEW ZEALAND BE 12 MONTHS FROM NOW? [request]
OPINION: WHERE WILL NEW ZEALAND BE 12 MONTHS FROM NOW? [request]
OCTOBER 2009
SEPTEMBER 2009
AUGUST 2009
STANDARD AGREEMENT FOR SALE AND PURCHASE: YOU HEARD IT HERE FIRST...
DEVELOPER'S LIABILITY FOR BUILDING DEFECTS CLARIFIED [request]
DEVELOPER'S LIABILITY FOR BUILDING DEFECTS CLARIFIED [request]
JULY 2009
MISSING THE POINT IN THE CONSTRUCTION CONTRACTS ACT 2002! [request]
JUNE 2009
MAY 2009
NEW UNIT TITLES BILL CREEPS A STEP FURTHER
TRAPS WHEN DEALING WITH MAORI LAND
THE RECESSION IS OVER - YEAH RIGHT! [request]
TRAPS WHEN DEALING WITH MAORI LAND
THE RECESSION IS OVER - YEAH RIGHT! [request]
APRIL 2009
MARCH 2009
KC PROPERTY TRADE & EXCHANGE REGISTER - UNLOCKING VALUE AND REFRESHING DEBT
PROPORTIONAL OWNERSHIP [request]
PROPORTIONAL OWNERSHIP [request]
FEBRUARY 2009
DIRECTORS BEWARE - AGREED VALUE OF YOUR SHARES MAY NOT BE WHAT YOU THINK!
RESOURCE MANAGEMENT ACT - PHASE ONE OF THE REFORMS UNVEILED [request]
RESOURCE MANAGEMENT ACT - PHASE ONE OF THE REFORMS UNVEILED [request]
DECEMBER 2008
NOVEMBER 2008
BUILDING ACT UPDATE - INCREASED CONSUMER PROTECTION
LIMITED PARTNERSHIP
LAWYERS CAN SELL REAL ESTATE
WE SHOULD BE FEELING BETTER [request]
LIMITED PARTNERSHIP
LAWYERS CAN SELL REAL ESTATE
WE SHOULD BE FEELING BETTER [request]
OCTOBER 2008
FAIR TRADING ACT - SECTION 9 REVISITED
HOW IS IT THAT I CAN BE SUED FOR PAYING TWO EMPLOYEES THE SAME SALARY?
[request]
HOW IS IT THAT I CAN BE SUED FOR PAYING TWO EMPLOYEES THE SAME SALARY?
[request]
SEPTEMBER 2008
AUGUST 2008
BURYING YOUR HEAD IN THE SAND WILL EXPOSE YOUR BOTTOM LINE
RELYING ON THE ACCURACY OF LIM REPORTS
WHAT DO YOU DO IF YOUR EMPLOYEE WANTS TO WORK FROM HOME? [request]
RELYING ON THE ACCURACY OF LIM REPORTS
WHAT DO YOU DO IF YOUR EMPLOYEE WANTS TO WORK FROM HOME? [request]
JULY 2008
JUNE 2008
MAY 2008
APRIL 2008
BODY CORPORATE AND HOTELS OR SHOPPING CENTRES [request]
MARCH 2008
CHANGES TO LANDLORD’S RIGHTS WHEN TENANT IN DEFAULT OF OBLIGATION TO PAY RENT UNDER A LEASE
AMERICANS CALL IT SUB PRIME. IN NEW ZEALAND IT IS CRAPPY LENDING!
[request]
AMERICANS CALL IT SUB PRIME. IN NEW ZEALAND IT IS CRAPPY LENDING!
[request]