Posts Tagged ‘Property’

Making the Most of Your Agreement to Lease

August 11, 2017

An agreement to lease is an agreement between a landlord and tenant of commercial property. It gives the parties an opportunity to record their leasing arrangements before they are formalised in a deed of lease.

There are many details to be worked through between parties to a lease. The agreement to lease should set out most of the details between the parties so when it comes to signing the deed of lease there is no confusion or discrepancy.

What should be included?

The agreement to lease needs to clearly identify the parties to the agreement and the premises to be leased.

In addition, it should record the annual rent, any reviews of the annual rent, the term of the lease, any renewals of the lease as well as a commencement date and the details of any guarantors required.

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Property Briefs

July 19, 2017

Grants available to insulate rental properties

Recent changes to the Residential Tenancies Act 1986 require all rental properties to have ceiling and underfloor insulation meeting a set standard, where reasonably practicable, by 1 July 2019.

A limited number of grants (for 50% of the cost) are available through Warm Up New Zealand: Healthy Homes, on a first-come-first-served basis for rental properties occupied by low-income tenants and are not owned by a government agency. The criteria are:

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Airbnb

July 11, 2017

Key tax considerations

Becoming an Airbnb host sounds like the perfect way to fund some overseas travel for yourself and rent out your home while you are away.

The popularity of online booking platforms such as Airbnb, BookaBach and Holiday Homes has grown significantly over the past few years. They are seen as easy for property owners to market and rent their property to the end user, and it turns idle holiday homes or spare bedrooms into income earning assets. BookaBach currently has more than 12,200 holiday rentals and Airbnb has 15,000+ hosts. Airbnb hosts’ average annual income in 2016 was $3,800.

AirBNB

If you want to become an Airbnb host, you’ll need to consider your income tax situation, GST and your ownership structure…

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Sharing a Driveway

June 26, 2017

Know your rights and obligations

Many episodes of Neighbours at War told of disputes regarding shared driveways. Whether you currently own a property or you’re in the market to buy a property with a shared driveway, it pays to know your rights and obligations to ensure you and your neighbour won’t be featuring on the next episode.

Right of way easement

The most common shared driveway is formed by an easement, granting ‘A’ the right of way over ‘B’ (or part of ‘B’). The rights and obligations of each party will be found in the easement certificate or instrument registered on the titles to the respective properties. It’s likely those easement instruments will refer to the Land Transfer Regulations 2002 and Schedule 5 of the Property Law Act 2007, which set out the implied rights and covenants that apply in right of way easements.

Both the Regulations and the Act allow the grantee and the grantor (and their agents, invitees, tenants and so on) the right to pass and re-pass over the easement area on foot, or with vehicles, machinery, plant and stock. The parties must repair any damage that they cause and they must keep it clear of obstructions such as parked vehicles or wheelie bins. If your neighbour parks on the right of way but you can still get past, then they may not be in breach of the implied rights.

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Buying off the Plans

June 12, 2017

The advantages, pitfalls and the Kawarau Falls case

If you live in one of New Zealand’s cities, it’s likely that you’ve noticed a multitude of brand-new apartments, terraces, and town houses popping up in your area. You may have decided that you too, want to secure one of these brand-new properties as an investment or as a home. What do you need to know before taking the plunge?

Many people choose to buy these kinds of properties ‘off the plans.’ Developers make building plans and specifications available to prospective purchasers and sell the properties ahead of construction as a method of convincing the bank to fund their project.

To secure one or more of these properties for yourself, you would need to enter into an agreement where you agree to pay a deposit (usually 5%–10 % of the developer’s asking price for the property) and then pay the balance on completion.

Before entering into any agreement with a developer, you should be aware of the advantages, and pitfalls, of buying off the plans. We have set out some below, but they are by no means exhaustive.

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Good Husbandry

May 11, 2017

Give it some thought when buying or selling

Agreements for the sale and purchase of rural land generally contain a ‘good husbandry’ clause. This clause is often inserted into the agreement as a ‘boiler plate’ or standard clause by real estate agents when preparing contracts. We discuss why it’s better to tailor-make this clause to suit each transaction.

The standard clause is often worded along these lines:

From the date of this Agreement until settlement, the Vendor shall continue to farm the property in a good and husband-like manner and in accordance with approved good farming practice in the district and shall neither overstock nor under-stock the property, nor do anything to impoverish the soil nor remove or damage any improvement or fixtures on the property.

However, both a seller and a buyer should give careful thought to the wording of this clause and its implications; it should be tailored to suit the particulars of any given transaction. This is particularly so for transactions where settlement is some time out from when the agreement was signed. It also needs to relate to properties where specific types of farming are being carried out.

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Clean Water Package 2017

May 1, 2017

What does this mean for farmers?

The government recently announced its Clean Water Package. The release has caused considerable controversy, largely around the proposed target of 90% of rivers and lakes being ‘swimmable’ by 2040 and, in particular, the E.coli guidelines for swimmable rivers being 540 E.coli per 100mls.

The Green Party and Labour Party were vociferous in their criticism of the government’s announcement largely because the amount of E.coli that can be present in swimmable water has doubled.

As well, Forest and Bird advised the Minister for the Environment, Dr Nick Smith and the Minister for Primary Industries, Nathan Guy that it was withdrawing from the Land and Water Forum. Forest and Bird is a very influential pressure group in this arena; it took legal action in relation to the proposed Ruataniwha Dam and that matter is still being litigated.

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Property Briefs: Ovens, Rent Reviews and Connection Services

October 19, 2016

The oven doesn’t work – what to do?

Nothing is worse than planning a celebratory dinner in your new home and finding the oven doesn’t work. How can you ensure this doesn’t happen?

The last thing you think about when making an offer for a property is the condition of the chattels (like the oven). These are listed in the agreement and are often breezed over. When the oven doesn’t work when you go to use it, there isn’t much that can be done if you haven’t thought about it when you signed the agreement.

Angry young woman, blowing steam coming out of ears

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Looking at Buying Your First Home? Look into KiwiSaver

October 12, 2016

The government announced on 31 July changes to Housing New Zealand’s KiwiSaver HomeStart scheme to help more first home buyers into the property market. These changes are effective from 1 August. If you’re looking at buying your first home, it pays to check whether you’re eligible to withdraw your KiwiSaver funds using the KiwiSaver First Home Withdrawal and to see if you qualify for the HomeStart Grant. Depending on how long you’ve been in KiwiSaver, the money you receive will go a long way in helping you open the door to your first home.

Glasses, save, savings.

KiwiSaver First Home Withdrawal

If you’ve been a member of a KiwiSaver fund for three years, you’ve never owned a home before and the property will be used as your principal place of residence, then you may be eligible to withdraw your KiwiSaver savings (except for the $1,000 government kick-start) through the KiwiSaver First Home Withdrawal scheme to put towards the purchase of the property.

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P-contamination in Residential Property

September 23, 2016

Every day more Kiwis are learning that they have been living in methamphetamine (P)-contaminated properties. Discovering you have purchased a contaminated property can be financially, mentally and physically devastating for you and your family. This article looks at P-testing and the risks if you suspect the property is P-contaminated and nothing is done.

When purchasing a property there is a lot you should consider. Purchasers are usually advised to include a builder’s report, Land Information Memorandum (LIM), obtaining finance and insurance on the agreement’s standard conditions. Many purchasers overlook the possible need for P-testing when buying a property. Since 2002 the use of P has skyrocketed, and it’s not wise to presume that properties in well-respected areas are safe. P-users come from many different walks of life.

pcontamination

Properties where P has been produced or regularly used are exposed to numerous chemicals which are absorbed by different surfaces and structural features. P-contamination within properties is rarely visible and it can cost huge sums to decontaminate.

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