Case study of Collaboration: Home and Parry Field Lawyers

Business is about relationships. One that we’ve enjoyed growing is with Home. A building company with a difference, Home specialises in community and affordable housing developments where there is much more than just quality houses being constructed – but an additional focus on creating communities.

Every team from within our firm provides support in some way. This ranges from helping with drafting contracts, purchasing land, arranging financing, structuring, intellectual property and as Home’s vision has grown, even recently helping with the creation of Home Foundation: a charitable trust focussed on ending homelessness.

Those are just some examples of a deep relationship across the core areas where businesses like Home can use our legal support.

Home co-founder Israel Cooper says: “The team at Parry Field are a unique group of legal experts. Their approach to any legal situation is both strategic and relational, recognising that business is fundamentally about preserving relationships as much as possible. It is their character and the values to which they hold themselves that is their best attribute. People you want to have your back in any difficult situation. “

One of the reasons we enjoy supporting Home is that we can play a part through our legal services in addressing a pressing social need in our wonderful country: housing. This sense of purpose and a shared alignment of values has been essential to the relationship growing.

Chair of Partners at Parry Field Kris Morrison adds: “We have loved putting our skills and legal knowledge to use in supporting a for-purpose company like Home. Contributing to their work coincides with the social justice motivations which led many of us to become lawyers in the first place.”

Paul Nanai, the CEO of Home, comments: “The team at Parry Field have provided exceptional service and expert intervention across many facets of our Business. We can say, outcomes and success achieved are because of them. We honour and value the true partnership we have and their heart and approach with resolving issues. For us the journey and ‘how’ we get to a destination is just as important as the result itself. And Parry Field have made the journey a lot better for us”.

Partner Steven Moe remembers talking with co-founder Israel Cooper for his podcast seeds here and says: “The clear focus and vision that Israel shared for Home is inspiring and shines through – it makes me proud that we can be involved in that kaupapa”.

We participated in the creation of a video which tells the story of Home over the last 10 years which can be seen here:

This video emphasises how we started this case study – relationships, and how critical they are to good being done in our world.

While the housing crisis continues it is nice to know Home is working to do their bit to contribute solutions. Supporting them in what they do brings us satisfaction too.

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About Parry Field Lawyers: With 80 staff in four offices (Christchurch City, Riccarton, Hokitika and Rolleston) we have three main teams: Commercial, Property and Disputes. Within each of those areas we offer deep experience in areas like Employment, Family, Charity, Immigration, Estates, Subdivisions, Litigation, Leasing, Business sale and purchases and more. We welcome the chance to discuss how our team might support yours.

The End of Life Choice Act 2019 is now in force. This means that a person with a terminal illness who meets the eligibility criteria can ask for medical assistance to end his or her life.

In this article we talk about the key provisions and also consider what that might mean for certain situations such as for landlords and managed accommodation.

Who is an eligible person?

An eligible person means a person who:

Is aged 18 years or over; and
Is a New Zealand citizen or permanent resident; and
Suffers from a terminal illness that is likely to end the person’s life within 6 months; and
Is in an advanced state of irreversible decline physically; and
Experiences unbearable suffering that cannot be relieved in a manner that the person considers tolerable; and
Is competent to make an informed decision.

The Act states that a mental disorder or illness, disability, or advanced age alone does not make a person eligible for assisted dying.

Where might a person choose to end their life?

An eligible person can choose where they wish to be when the medication is administered to end his or her life. It is expected that assisted dying services will generally be provided in a patient’s home or a community setting such as a hospice or rest-home, as opposed to a hospital.

While section 8 permits health practitioners to conscientiously object to providing assisted dying, the Act is silent as to whether any other organisations or individuals outside the healthcare sector can object to and prohibit assisted dying.

Managed accommodation facilities

The Ministry of Health has stated that managed accommodation (such as aged care facilities) can conscientiously object to assisted dying and prohibit it from taking place on the premises.[1] However, managed accommodation facilities that object to assisted dying must still adopt policies that allow for appropriate arrangements to be made elsewhere.

A landlord’s obligations

A landlord who objects to euthanasia may question whether he or she has a right to prohibit a tenant who is eligible under the End of Life Choice Act, from exercising the option of receiving assisted dying, in the rental property.

It is unlikely that a landlord can interfere with a tenant’s choice to receive assisted dying under the Act.

This is because under the Residential Tenancies Act 1986 (RTA), discrimination is declared to be unlawful when granting, varying, terminating or renewing a tenancy agreement. A landlord is also prohibited from stating an intention (by advertisement or otherwise), when granting a tenancy agreement, or when advertising to prospective tenants, to discriminate against any person.

It is also unlawful under the RTA to, on the basis of a prohibited ground of discrimination, treat any person who is seeking accommodation differently to others in the same circumstances, deny any person accommodation, or impose a condition which limits the class of persons who may be tenants.

Could there be discrimination under the Human Rights Act?

The Human Rights Act 1993 outlines the unlawful grounds of discrimination. Ethical belief is one of these grounds.

While there is no authority on this, ethical belief may encompass a person’s conviction to end his or her life by euthanasia. This means that the following may be discriminatory on the grounds of ethical belief:

A prohibition on assisted dying in the property as a condition of a tenancy agreement;
A verbal statement to prospective or existing tenants to this effect;
Denial of a rental property to a person who has expressed support for assisted dying;
Termination of a tenant on the grounds that he or she has expressed a desire to receive assisted dying.

Even if the termination of a tenancy on the above ground is not considered discriminatory, it will likely still be unlawful, as there are limited circumstances in which a tenancy can be terminated. It is unlawful for a landlord to act to terminate a tenancy without a valid ground.

Finally, there is also a practical point – there is potential for adverse publicity if a tenant wanted to take these steps and a landlord refused.

As a landlord, housing organisation or another organisation altogether, it is critical to consider your obligations under the End of Life Choice Act.

If you need further clarity you can contact Grace Watson gracewatson@parryfield.com who would be more than happy to talk with you about your particular situation.

[1] Ministry of Heath “End of Life Choice Act – Funding and Delivery Model for Assisted Dying Services” (July 2021) <www.health.govt.nz>.

Buying your first home is exciting but it can also be quite overwhelming with lots of words being thrown at you that you don’t quite understand. As a house purchase is likely to be one of the largest investments you make, it is important that you are fully informed when starting the home buying process.

When my husband and I purchased our first home we were nervous and a little unsure of what was to come. Once we had worked our way through making an offer, working through our conditions and ending up at settlement day, picking up the keys to our first home is still one of our greatest memorys. I’m a young first home buyer and in this article I am going to break down some of the keys things I wish I had known/think other first home buyers should know.

1. Chat to the professionals

Once you are thinking about buying your first house, it is a really good idea to chat to your lawyer and bank/broker early on in the process. Having a strong team of professionals backing you from the get-go will ensure that the process is less stressful overall.

Bank

Your bank will be able to talk through the finance side of things with you to determine how much you can afford. They will also be able to work with you to determine if you are eligible for a KiwiSaver first home withdrawal or a HomeStart Grant. Your bank might also have special conditions that they need you to fulfil before they give an unconditional offer of finance. It is a good idea to find out what these conditions are (preferably in writing from the bank) and chat to your lawyer about them as early as possible. Common conditions that we would see include the bank receiving and being satisfied with a registered valuation or a builder’s report and having confirmation that your Kiwisaver funds are available for use. If you are purchasing in Canterbury, they may also wish to see all documentation relating to any earthquake claims associated with the property.

Lawyer

Contacting your lawyer early on means that you can get a better idea of what the process is going to look like and what you should be looking out for when you do find the right place. We would always suggest that you chat to your lawyer before you put an offer in on a property (sign a Sale and Purchase Agreement) as that way your lawyer can ensure that all the conditions are in your offer that need to be there.

2. Be prepared for extra costs

It is important to bear in mind that you will be putting more money into your purchase than just the purchase price. There will be additional fees such as your lawyer’s fees and builder’s fees if you choose to get a building report done. There are also extra fees that your lawyer will need to pay to Land Information New Zealand to transfer the title to the property into your name and register a mortgage and also to the local Council for ordering a LIM report.

3. There will be deadlines

There will be certain deadlines in your Sale and Purchase Agreement that you need to be aware of. Often, once you have signed your offer you will have 10-20 working days (about 2 to 4 weeks) to work through your due diligence and satisfy all your conditions. It is important to note that if you don’t meet the deadlines, the Vendor (the person selling the house) will have the option to cancel the Agreement on you.

Your lawyer will be able to advise you of the deadlines and will work with you ensure that the deadlines are met or that an extension is requested where needed.

4. Set time aside for meetings and phone calls

You should be aware that you will need to put time into getting things across the line. Your lawyer will be putting in a lot of work behind the scenes but there are certain things that they can’t do without you.

Signing KiwiSaver Withdrawal Documents

If you are looking to withdraw your KiwiSaver funds you will need to meet with your lawyer to sign some documents which they will then send away to your KiwiSaver provider. If you can’t meet with your lawyer to sign the documents, you will be able to do this with a local Justice of the Peace.

Phone Calls and Emails

While you are working through your purchase conditions, you will likely need to talk with various people. For example, if you are obtaining a builder’s report, you will need to arrange this with a builder and review the report that they send through. Likewise, you will need to talk about your bank/broker about finalising finance and with your lawyer as you work through the various conditions.

Settlement Documentation

Prior to settlement your bank will send your lawyer some loan documents which will need to be signed in order for your bank to pay out your loan on settlement. There will also be a couple of other documents that your lawyer will need to sign with you before they can transfer the title to the property into your name(s). These documents can normally all be signed in the same meeting.

5. Get excited!

If you are reading this article then congratulations on getting this far in the home buying process. Buying a house is a big deal and it will be a great feeling picking up the keys to your new home.

This article is not a substitute for legal advice and you should contact your lawyer about your specific situation. Our property team at Parry Field Lawyers love helping first home buyers into their first homes. We explain things to you in an easy to understand way and are here every step of the way to answer your questions. For more information, contact us on 03-348-8480 or by emailing Paul Owens – paulowens@parryfield.com, Judith Bullin – judithbullin@parryfield.com or Luke Hayward – lukehayward@parryfield.com

When looking to purchase a house, you may note that some properties are marketed as “cross leases”. This article seeks to clarify what cross leases are, and what you need to look out for should you purchase one.

Cross leases were originally created as a convenient and cheaper alternative to a fee simple subdivision. As they are now included under the definition of subdivisions, cross leases are becoming a less desirable form of ownership. It is important to understand exactly how they operate, as they involve greater obligations than a fee simple title.

Fee Simple vs. Cross Lease

A “fee simple” title grants you the most freedom and access. It bestows the full, permanent and absolute occupancy (tenure) in the land and will last indefinitely (subject to the rights of the Crown in some instances).

A cross lease property still involves an underlying fee simple title; however each cross lease owner owns only a share in the overall property. In addition, each owner leases individual flats from all the fee simple owners. The lease term will typically be limited to 999 years. The Certificate of Title will include a Flat Plan, which highlights the area of each flat, the common areas (such as a shared driveway) and restricted areas that each owner has private use of, such as a garden.

Example

Alex, Bradley and Charlotte own three cross-leased properties: Flat A, Flat B and Flat C, on 1 Example Street. As a group, they collectively own the land, with no exclusive ownership of any specific part of the land. Instead, they each hold a one-third “undivided” share in the fee simple estate.

As a group, Alex, Bradley and Charlotte lease the flats to themselves individually. So Flat A is leased to Alex, Flat B to Bradley and Flat C to Charlotte. Their leases (which are registered on the title), provide exclusive use and enjoyment of the flats for each owner.

Should Alex wish to sell Flat A, he will be selling his 1/3 interest in the underlying fee simple title and his interest in the Flat A lease.

Tips on things to look out for:

Cross lease covenants: These are contained in the lease and each flat owner must comply with them. Examples of covenants include:
- Not altering or improving the leased structures without written consent from all other flat owners;
- Having a comprehensive insurance policy in place; and
- Allowing the inspection of each other’s flats to ensure compliance with the covenants.

In our experience, many cross lease owners simply ignore their obligations, which can cause issues down the track, most commonly when you come to sell the property.

A title condition in the Agreement for Sale and Purchase: This allows your lawyer to look over the title and related documents to ensure they are accurate and check for any issues.
How will the common areas be maintained? Before buying the property, it is important you are clear on expectations in relation to “shared” areas. How different insurance policies might respond to these areas, such as driveways, is also relevant.
Explore the relationship with the neighbours: As you will need their consent for alterations, it will be important to maintain a positive relationship with the other cross lease owners. Though be aware that the vendors may not want to disclose anything adverse given their desire to sell, hence you may need to carry out your own enquiries where possible.
Be careful to check that the actual property matches the Flat Plan: If any physical improvements or alterations have not been included on the flat plan, the title will, strictly speaking, be defective. This could affect whether you have leasehold title to the common or restricted areas, or to certain improvements. To remedy this, you will need to obtain the consent from the other owners, and have the flat plans amended. This can be time consuming and costly, so ideally you would require the vendor to sort this before you purchase the property. Indeed, in some instances the costs involved may mean it is prudent to explore converting the cross lease ownership to a fee simple one – the greater “freedom” of the latter might even result in the property increasing in value, which could offset any costs.

Cross leases can be complicated. If you are considering purchasing a cross lease property, it is essential that you obtain legal advice. Likewise, if you are thinking of selling your cross lease, you should also discuss your options with your lawyer before you take the property to market.

This article is not a substitute for legal advice and you should talk to a lawyer about your specific situation. Please contact Tim Rankin at Parry Field Lawyers (348-8480) timrankin@parryfield.com

The new Government in New Zealand has announced changes to the foreign investment system. This will restrict non-resident foreigners from purchasing houses in New Zealand by changing the definition of “sensitive” to include such housing. At present other land is defined as sensitive under the Overseas Investment Act (OIA). That includes for example land that is bordering reserves and parks or on the foreshore of lakes or rivers or which is farming land (among others). For an overview on the overseas investment process click here and for information about key issues when immigrating to New Zealand click here.

New Zealand house prices have been increasing in the last few years and the intention behind the rule changes is to prevent foreign speculation on house prices. Ultimately, the Government is hoping to stop their growth which has been resulting in New Zealanders not being able to afford to purchase a home, particularly in Auckland where the average house price is very high.

David Parker the new Trade Minister said the following in a recent interview: “We’ve got to fix land. We think it’s absolutely abhorrent that New Zealand government would lose the right to control who buys homes in New Zealand from overseas. And we’re working up mechanisms on that.”

While the purpose is clear the exact mechanics and timing is not. Some have raised concerns that such a ban could be difficult in the context of different free trade agreements in place or due to be signed like the Trans Pacific Partnership (TPP). However, the intention is certainly clear and it is highly likely that there will be change soon.

We will provide updates when the precise changes are known but wanted to get this briefing note out in the meantime. We have acted for foreign buyers who are looking to purchase assets in New Zealand and can help you if you have any questions about the process.

We have also prepared a detailed guide called “Doing Business in New Zealand” which has an overview about the New Zealand business environment. We are happy to email that out to those who would find it of help.

This article is not a substitute for legal advice and you should talk to a lawyer about your specific situation. Should you need any assistance or would like to request a copy of the “Doing Business in New Zealand” guide, please contact Kris Morrison at Parry Field Lawyers (348-8480) krismorrison@parryfield.com

Do you and your married spouse own and live in your home? Are either of you self-employed or involved in some occupation that involves personal exposure to financial risks(e.g. personal guarantees)? If you answer ‘yes’ to both these questions you should seriously consider registering your home under the Joint Family Homes Act 1964. It could prove to be very cheap protection against losing equity in your home in the event of being sued or bankrupted.

What is a Joint Family Home?

Most people think their home is registered as a joint family home because both their names are on the title. This is WRONG! It requires a special application to the Land Titles Office for your home to be registered as a Joint Family Home (“JFH”) under New Zealand’s Joint Family Home Act 1964.

The cost is between $500.00 – $1,000.00 plus GST. Costs vary depending on whether or not you wish to publicly advertise the application. The advantage of advertising is that the protection takes effect within six months rather than the standard two years after application. Also your bank may charge a small fee if you have a mortgage.

What is the Protection?

You will not be protected against secured creditors e.g your mortgagee, but part of your property will be protected against unsecured creditors; e.g. trade creditors to your business, if it is not a company.

Essentially the Joint Family Home Act 1964 creates a protected fund of $103,000 which is safe from unsecured creditors. This fund is to assist in the purchase of a replacement home unless unsecured creditors convince the High Court of New Zealand to exercise its discretion and agree to the sale of the home. (In practice creditors are reluctant to apply to the Courts because of high cost, and the reason that a judge has to balance the general desirability of preserving the matrimonial home for the family on the one hand against the just claims of creditors on the other.)

The Court cannot order the sale of a JFH home if there is less than $103,000 equity in the home. A mortgagee,however, can sell the home (in the event of default) no matter what equity the owners have. The protection is all the more worthwhile if the matrimonial home has previously only been registered in the name of one spouse.

Summary

For quick protection against creditors, some lawyers think a JFH application is more secure than selling the property to a family trust and dealing with the debt back. While this is debatable ,especially at higher levels of equity, it is certainly more affordable. Protection, however, can be lost if it is found at the time of application that the parties were unable to pay all their debts (other than those charged against the house) without recourse to the house sale proceeds.

One way to view the application is as a type of insurance. The insurance is cheap and involves a once only payment which is good for as long as you own the house. It is a simple procedure and the loss is small even if, at the end of the day, protection is not achieved.

Also for a small fee the registration can be transferred to your next home, and registration does not preclude transferring ownership to a family trust later on.

There are a couple of catches : a) you must be legally married to apply for a JFH, and b) if you die, the property automatically goes to the surviving spouse regardless what your Will says!

There are other criteria to satisfy also, so you should contact your Parry Field Lawyer to see if there are advantages for you in registering your home as a Joint Family Home.

This article is not a substitute for legal advice and you should talk to a lawyer about your specific situation. Should you need any assistance with this, or with any other Relationship Property matters, please contact Hannah Carey at Parry Field Lawyers (348-8480) hannahcarey@parryfield.com

Most of us are used to living in an environment where there is a certain amount of noise. However, there are also times when noise can become excessive and interfere with the peace, comfort and convenience of other people.

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If you have any concerns that you may have a leaky home, it’s important that you act quickly to investigate your concerns. Parry Field Lawyers provide legal advice on a range of property matters including leaky home claims.

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Case study of Collaboration: Home and Parry Field Lawyers

Fee Simple vs. Cross Lease

Example

Tips on things to look out for:

What is a Joint Family Home?

What is the Protection?

Summary

Christchurch CBD

Christchurch – Riccarton

Rolleston

Hokitika

Auckland