LawWorks News

Property Advice - April 2011

Over the past few years we have encountered numerous situations which have highlighted the importance of obtaining property law advice when you are considering purchasing a property.  It is of particular importance if the property you are looking at purchasing is a unit title, cross lease or company share title.  These titles can be complicated and need to be carefully reviewed.  The types of situations we have encountered include:

  • In the case of a cross lease, the flat being extended without the cross lease plan being altered;
  • The lack of provisions in the cross lease document dealing with common areas, particularly driveways; 
  • Body Corporate Rules (Unit Titles) prohibiting the kind of occupation/activity intended by a purchaser;
  • Body Corporate outgoings dictating unusually high monthly contributions from Unit owners;
  • Body Corporate Title restrictions that may impact upon a purchaser’s ability to grant a mortgage over the Title;
  • The lack of a code compliance certificate for building working done to the property in the past – this is common.  This may have significant insurance repercussions.  

Issues can also arise when purchasing what a purchaser may believe to be a straight forward fee simple title.  A right of way may impact upon a title in a way that would not be ordinarily anticipated.  A title may be limited as to parcels and require a survey of its boundaries.  An apparently simple or "standard” easement may have unintended consequences of the unwary purchaser.

We do not recommend that anyone take lightly and underestimate the need for professional advice when purchasing land and property.  

If you would like more information regarding the tax changes or property advice please contact Tony Walker, Partner on 303 9916, email: tony@lawworksnz.com  or Sarah Edmondson, Associate on 303 9915, email sarah@lawworksnz.com


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