Tag: Possession

Title Estates

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April 13, 2010

What are the different types of Title Estates in New Zealand under the Torrens System?

1. Fee simple – This is the largest interest which can be held in land next to the Crown. In effect this type of ownership is not limited by time and continues indefinitely. It carries rights representative of absolute ownership of property. Such rights include disposing of the land by sale, gift or generally whatever the owner wishes. But do remember if you were to find minerals, gems or other lucrative mines of wealth in the soil. This would be claimed by the Crown and you compensated accordingly.
2. Life estates – Generally speaking this type of interest is limited to the life of a tenant of an estate. It is normally used in family situations where a person wishes to divest themselves of the ownership of the property during their lifetime, but retain the right to use of the property. A Deed would be registered against the Title to protect the right.
3. Leashold estates – This is where the owner being the Lessor grants an exclusive right of possession of the land for a period of time on certain terms to another party being the Lessee. For the lease to be valid it must specify the time to run, property affected by the lease and exclusive possession. This type of lease would be registered against the Title.

Stay posted for further definitions and do provide your feedback or request for a topic we have not covered and you would like us to blog about. :)

: Property Conveyancing News, Uncategorized
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Buying a Business

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November 8, 2009

Following on from my previous blog:

* You should ensure you have access to the business before settlement to be introduced to the clients.

* The Sales and Purchase Agreement should state that risk of the assets passes from the Seller to you on settlement and possession date.

* What type of insurance will you require – Public Liability, Business Insurance, Plant and equipment, Motor Vehicle. Ensure you list everything and obtain the appropriate quotes, generally through a Broker.

* What costs are to be apportioned between you and the Seller at settlement – Rates, Rent, any Licencing fees.

* Will there be a Restraint of Trade – You are entitled to restrain the Seller from competing against you in a similiar type of business generally for two years, and within a certain radius from the premises.

* What types of conditions are required in the Sales and Purchase Agreement – Subject to Finance, Landlord consent, Land Information Memorandum, Due Diligence, Confirmation of accounts.

* Are there any franchise or licence agreements to be assigned.

Stay posted for the final blog regarding purchasing a business. Warm Regards Kim

: Property Conveyancing News, Uncategorized
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Agreement for Sale and Purchase

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October 28, 2009

Lets break it down in bit by bit:

Recently the Real Estate Institute of New Zealand released a plain English version of a new Agreement for Sale and Purchase. This Agreement has not been received well by the Real Estate Industry. It would appear the majority of Agents will stick with the Auckland District Law Society Eighth edition (2006) (2).

The transaction begins with the negotiations between the Vendor and Purchaser, when both parties are satsified the Agreement for Sale and Purchase is completed with the terms and conditions which require satisfaction prior to the Agreement being confirmed unconditional. The Agreement for Sale and Purchase represents the contractual obligations of the parties.

Front Page:

The date of the Agreement should always be the date at which the last party signed.

Vendor; The Vendor’s names as shown on the Certificate of Title.

Purchaser; The names of all person who at the end of the transaction will be registered on the Title. To take it further the names should be as described on Driver’s License or Passports.

Address; The address for which the transaction is in relation too.

Estate and legal description; This should be exactly as described as per the Certificate of Title. Delete the estates which are not applicable.

Purchase price; The price will be inclusive of GST (if any) unless the appropriate deletion is made.

Deposit; The amount of the deposit is often 10%, note the parties can agree to a different amount or even no deposit at all.

Payment of purchase price; There are two options, one which must be deleted. Cleared funds is the first option, this simply means cash, bank cheque or electronic transfer. The settlement date needs to be inserted and the second option deleted. The second option would be used in payment was to be made by instalments or if vendors finance was involved.

Possession date; This is the date the Purchaser will take possession. This is generally the same as the settlement date.

Stay posted for further information around the Agreement for Sale and Purchase. Regards Kim

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Leasehold Estate

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September 27, 2009

A lease interest is created when the Lessor grants to another party the Lessee a  right of possession of land for a period of time. In effect the Lessess will pay the Lessor a fee for occupation. The terms will be written into a form of a Lease document. The Lease will contain the conditions such as length of time for which the Lease is to run, the property or premises together with right of occupation. The Lease should be registered against the Title. New Zealand contains a lot of Leasehold properties. Here are a few examples of Leases: Commercial Lease, Residential Leases, Leases of Crown Land, Cross Leases or Maori Land. Much care should be taken before purchasing property which is Leasehold. Again homework, research and professional advice should be sought.

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