DECEMBER 2009
SETTLEMENT NOTICE SERVICE Beware of notice provisions in sale and purchase agreements. A recent High Court case highlights the importance of keeping addresses up-to-date insofar as service of settlement notices and cancellation notices under certain sale... CHANGES TO THE DISTRICT COURT PROCESS The new District Court Rules have undergone major revision and kicked into force on 1 November 2009. The core philosophy puts access to justice ahead of other competing considerations, with the focus on speedy and inexpensive determination... FIXED FEES - MORE BANG FOR YOUR BUCK The recession is over but that doesn't mean that vacant office and retail space will be filled, new industrial buildings will be completed, or large volumes of residential houses and apartments will be built. What we are certain of is that property people still need sound, pragmatic, commercial property advice... [request]
NOVEMBER 2009
INCOME TAX ACT - NEW ASSOCIATED PERSONS RULES The definition of Associated Persons for income tax purposes has been amended. The relevant legislation making this change is the Taxation (International Taxation, Life Insurance and Remedial Matters) Act which was enacted on 6 October 2009.... OPINION: WHERE WILL NEW ZEALAND BE 12 MONTHS FROM NOW? We invited some experts to predict the state of the New Zealand economy this time next year. Here are their predictions. We welcome your comments - be prepared to be published! There is an accurate and time-proven way to find out what exchange rates, inflation, interest rates and other key economic data will be in twelve months time. Simply ask... [request]
OCTOBER 2009
'SAFE AS HOUSES'. YEAH RIGHT! Like many lawyers, we act for owners of leaky homes. We are currently dealing with a case for clients Nicki Turner and Tracey MacLeod, whose building has all the usual problems associated with moisture ingress... UNIT TITLES BILL - RECOMMENDED CHANGES In May 2009 we reported on the closing of submissions on the Unit Titles Bill and the key changes that the Bill will bring. The Social Services Committee recently released its recommendations as to the changes... SIZE DOES MATTER We have recently encountered a number of arguments raised by apartment purchasers, after being called on to settle, that the size of the apartment as-built (as shown on the final subdivision plan) does not match the size shown on the preliminary plans... [request]
SEPTEMBER 2009
BANKS REQUIREMENTS FOR FUTURE FUNDING After a fairly quiet patch following the collapse of the second tier finance industry, there are signs of life in the property development industry. It is important to start planning your next development now... DISPUTES TRIBUNAL Maximum claim levels have increased following the passing of the Disputes Tribunals Amendment Act 2009. The maximum claim level has increased from $7,500 to $15,000, or, with the consent of both parties, from $12,000 to $20,000.... SPRING 2009 CHANGES Although not new to the firm, John Heimsath joined the partnership on 1 September. http://www.kclaw.co.nz/partners_john_heimsath.cfmAngela Hansen has been promoted to Senior Associate and head of our litigation team. http://www.kclaw.co.nz/associates_angela_hansen.cfm Our congratulations to John and Angela. If you have not had the pleasure of working with them over the past year, we look forward to introducing you to them. [request]
AUGUST 2009
YOU HEARD IT HERE FIRST... The standard Agreement for Sale and Purchase form that is co-authored by the Real Estate Institute and the Auckland District Law Society will possibly fall into oblivion. The Real Estate Institute has produced its own format... DEVELOPER'S LIABILITY FOR BUILDING DEFECTS CLARIFIED Developers can take some comfort from a recent case regarding a leaky apartment claim in which the Court dismissed claims against a developer that he was personally negligent... [request]
JULY 2009
MISSING THE POINT IN THE CONSTRUCTION CONTRACTS ACT 2002! So you're a builder and I'm a subbie. I put my progress claim in on your job and you claim that I didn't do the work right so you're not paying until it's sorted out somewhere in the distant future. It looks to me like things aren't going so well for you on another job and you want to avoid paying me so you can use the money elsewhere. But it's not the bad old days... [request]
JUNE 2009
GETTING IT RIGHT WHEN SELLING OFF THE PLANS Developers - have you had trouble with purchasers claiming just prior to settlement that their apartment is not the same as what was shown in the sales brochure? You need to make sure that your sales brochure... LEAKY BUILDING CLAIMS & ADJUDICATION Just when property developers and building contractors thought matters couldn't get worse with the current economic climate, there is a growing awareness that the Construction Contracts Act 2002 can add to their misery by... [request]
MAY 2009
NEW UNIT TITLES BILL CREEPS A STEP FURTHER April saw the close of public submissions on the Unit Titles Bill marking the first significant sign of progress since the draft Bill was released in early 2008. The key changes from the 1972 Act... TRAPS WHEN DEALING WITH MAORI LAND Significant areas of land in New Zealand are Maori land but the exact status of the land can at times be difficult to determine. The matter is clear if the Maori Land Court has determined the issue and registered a status... THE RECESSION IS OVER - YEAH RIGHT! New Zealand businesses have had a relatively difficult couple of years. Don't forget that Alan Bollard cranked up interest rates in 2006 in an effort to take the heat out of the economy. In hindsight, this may have been New Zealand's saviour.... [request]
APRIL 2009
EXCHANGE YOUR PROPERTY In Law Matters March 2009 we introduced the KC Property Trade & Exchange Register, which was launched last month to facilitate the trade of property interests at an agreed value, especially in the current economic climate with a shortage of motivated cash purchasers.... EMPLOYMENT LAW As anticipated, the National Government has moved quickly on implementing new employment laws resulting in a phase of considerable change. We are now distributing a monthly update on employment law changes that employers need to be... PROPORTIONAL OWNERSHIP We wrote to all of our clients in February inviting expressions of interest in investing in commercial property through proportional ownership. There has been substantial interest and investors with capital who are finding that there are limited options for earning good returns are... THE NEW ZEALAND PROPERTY GROUP (NZPG) held its Annual General Meeting last month. NZPG members include significant property players in the market and the Group acts as a collective voice for issues relating to the property market, particularly in relation to local and central Government regulation of development.... [request]
MARCH 2009
KC PROPERTY TRADE & EXCHANGE REGISTER - UNLOCKING VALUE AND REFRESHING DEBT One of the biggest challenges in the current property market results from being unable to exit property investments because of the shortage of motivated cash purchasers. In a downward moving market a cash purchaser will... http://www.kclaw.co.nz/exchange.cfmPROPORTIONAL OWNERSHIP Proportional titles are the latest fad for people seeking higher returns. Share-market investments were the rage in the 1980's, and finance companies in the 2000's. The next ten years will be the decade of proportional ownership. People simply cannot live on the interest... [request]
FEBRUARY 2009
DIRECTORS BEWARE - AGREED VALUE OF YOUR SHARES MAY NOT BE WHAT YOU THINK! The Companies Act can override your agreement as to the value you place on shares you are buying or selling... RESOURCE MANAGEMENT ACT - PHASE ONE OF THE REFORMS UNVEILED. On 3 February the Government announced the first phase of long awaited reforms to the Resource Management Act (RMA). The proposed changes are aimed at streamlining RMA processes and providing a greater level of accountability for Council... [request]
DECEMBER 2008
EMPLOYMENT LAW UPDATE - POLICY CHANGES It is anticipated that the National Party will move quickly on implementing its pre-election policy on employment and workplace relations. It seems unlikely that ACT's policy... PURCHASERS BEWARE - LIMITED WARRANTIES While the standard REI-ADLS Agreement for Sale and Purchase contains a number of general warranty provisions relating to the description and quality of the property being sold... [request]
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NOVEMBER 2008
BUILDING ACT UPDATE - INCREASED CONSUMER PROTECTION. The Building Act 2004 (The Act) has repealed the Building Act 1991 and introduces a number of changes to the law governing building work... LIMITED PARTNERSHIP. Earlier this year the government created a new joint venture arrangement known as Limited Partnerships. Although New Zealand is well behind many other countries... LAWYERS CAN SELL REAL ESTATE. A new law was recently enacted enabling lawyers to sell real estate and (as with everything else) charge a fee for the service. But lawyers cannot charge a commission.... WE SHOULD BE FEELING BETTER The majority of New Zealand's population (who are not in finance or property) should be feeling more comfortable. A tank of gas now costs $30 to $40 less per week. Reduced mortgage.... [request]
OCTOBER 2008
FAIR TRADING ACT - SECTION 9 REVISITED. Can a company director be liable for the actions of his company pursuant to s.9 of the Fair Trading Act? In a recent Court of Appeal Decision... HOW IS IT THAT I CAN BE SUED FOR PAYING TWO EMPLOYEES THE SAME SALARY? Take, for example, two employees who have the same (or substantially similar) qualifications, experience or skills. Their employer decides they are both entitled to the same remuneration.... [request]
SEPTEMBER 2008
BUYING A PROPERTY ON A 'PLUS GST' BASIS. The 8th edition of the ADLS Agreement for Sale & Purchase has been in circulation for some time. However, what many clients will not be aware of are the changes to the GST provisions... BROTHERHOOD - RIDE FOR YOUR LIFE. Knight Coldicutt client, Rick Martin of Cornerstone Group, has set his heart on making as much noise as he can in support of a very worthy cause. He will be cycling from Bluff to Cape Reinga between 13 November and 8 December 2008 to raise awareness about prostate cancer and other male illnesses that can be fatal when not diagnosed and treated in early stages. Visit http://www.brotherhood.org.nz to get your Male WOF Checklist and find out more about Rick's campaign. FINANCE COMPANIES AND MORATORIUMS. Should we sympathise with mum and dad investors caught up in finance company losses? If we are smart enough to save money, then surely we are smart enough to make informed decisions... [request]
AUGUST 2008
BURYING YOUR HEAD IN THE SAND WILL EXPOSE YOUR BOTTOM LINE. Whether we like it or not the economy has shifted and life is tougher than it was last year. We are seeing an increase in forced sales... RELYING ON THE ACCURACY OF LIM REPORTS. In July 2008 in the Blenheim High Court it was held that the Marlborough District Council had acted both negligently and in breach of its statutory duty... WHAT DO YOU DO IF YOUR EMPLOYEE WANTS TO WORK FROM HOME? Employees may now request to vary their hours and days of work, including asking to work from home... [request]
JULY 2008
HEALTH CHECK - HAS YOUR BUSINESS HAD ONE LATELY? What we often see with business clients is owners who are actively (and often exhaustively) involved in the day-to-day running of their businesses with little or no time or resource to think about the structure... TERMS OF TRADE. In the rush to get products to market and generally get the business going, terms of trade are often overlooked, or seen as an unnecessary cost... [request]
JUNE 2008
REPAYING A LOAN? GETTING CHARGED A FEE FOR EARLY REPAYMENT? IS IT ILLEGAL? Are you being asked to pay too much for early repayment of a loan? Knight Coldicutt recently had cause to question the legitimacy of a break fee... CREDIT CRUNCH. Businesses are suffering a credit crunch, not necessarily meaning that they can't borrow, but that their customers and clients are not paying... [request]
MAY 2008
ACCESS LOTS PROPERTY LAW ACT 2007. It is common for land owners in many subdivisions to share a driveway or private road. Over the years, surveyors have commonly used access lots as a method of... PEEKING AT THE WORLD FROM OUR PERCH. Being an observer in the property scene these days is very interesting. Some 12 – 18 months ago the market came to an abrupt halt... [request]
APRIL 2008
BODY CORPORATE AND HOTELS OR SHOPPING CENTRES. In the past ten years, developers and speculators have sold down individual unit titles in hotels or shopping centres as a way of realising better returns than if they were sold as a whole... [request]
MARCH 2008
CHANGES TO LANDLORD’S RIGHTS WHEN TENANT IN DEFAULT OF OBLIGATION TO PAY RENT UNDER A LEASE. The Property Law Act 2007 (Act) has now been passed. The requirements to re-enter and terminate a lease are now governed by Section 245 of the Act... AMERICANS CALL IT SUB PRIME. IN NEW ZEALAND IT IS CRAPPY LENDING! The demise of finance companies and other property related public institutions in New Zealand is caused by one thing - bad lending policies... [request]
FEBRUARY 2008
PROPERTY LAW ACT 2007 NOW IN FORCE. On 1 January 2008 the Property Law Act 2007 (the Act) came into effect repealing the earlier Property Law Act of 1952. As the name suggests, the Act deals with the general law relating to real and personal... VENDOR REPRESENTATIONS. The recent case of Mayoral Drive Trustee Co Limited v McQuire highlights the risks to both vendors and purchasers of representations made as part of a property sale... [request]
DECEMBER 2007
ELIGIBLE PERSONS EXEMPTION UNDER THE SECURITIES ACT 1978. Offering shares or other securities in your company to third party investors can be a great way of raising capital. However, most of us know that the Securities Act 1978 (“The Act”) has some strict constraints... CANCELLATION: A SALUTORY LESSON. High Court holds invalid cancellation by a purchaser of two sections in a subdivision development. The High Court holds that a purchaser could not cancel agreements after the subdivision plan was submitted to LINZ... [request]
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