Author Archives: Bramwell Bate Lawyers

About Bramwell Bate Lawyers

Bramwell Bate specialises in providing corporate and commercial legal services to a broad range of businesses throughout Hawke’s Bay. The team can also advise on buying and selling property, estate planning and trusts, relationship property and family law, among others. Our team’s skills are diverse and we have the expertise to assist with all your legal requirements. Visit us at www.bramwellbate.co.nz

Putting your best foot forward in a booming property market

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By Anna Bernie

The COVID-19 pandemic has created a great deal of economic uncertainty both globally and in New Zealand.  During the lockdown in April and May 2020 we were all questioning how the housing market would be impacted.

Contrary to the expectations of some commentators, the NZ housing market has been booming since the end of lockdown.  Whether this is from an increase in Kiwis returning home, new home buyers taking advantage of lower interest rates or people just needing a change, the fact is competition for houses has increased and prices are still rising. According to data REINZ released in September 2020, median house prices across NZ increased by 16.4% in August 2020.  In Hawke’s Bay the increase in annual sales volumes during August was 32.5%, the highest number of house sales for the month of August in 14 years.

Bramwell Bate is finding that clients are often involved in a multi-buyer situation where now, more than ever, they are needing to put their best foot forward in order to have a chance at their offer being accepted.

It is still important, however, that you do your homework first.  A house purchase is one of the biggest investments you will likely make in your lifetime.

When you put forward an offer to purchase a property, you can make the offer subject to several conditions that need to be satisfied before your purchase proceeds.

One of the most common conditions is finance.  Even if you have pre-approval from a bank, most banks will need to see the signed Agreement for Sale and Purchase and approve the property you are looking to purchase before they will give you final approval. This makes the finance condition crucial.

If it is your first home, then you may be eligible for a Homestart Grant or to withdraw funds from your Kiwisaver.  In these situations you should speak with your lawyer about what timeframe your finance condition should have to ensure you have sufficient time to get approval and withdrawal of funds, especially if you need those funds to pay a deposit to the vendor.

A solicitor’s approval condition is also often included in an Agreement for Sale and Purchase.  This can provide your solicitor with a chance to look at the Agreement and the title to the property.  For example, there may be an easement on the property which gives someone a right of way, or a right to run power or pipelines through your property. You may also have plans to develop your property and before you proceed with the purchase it is important to consider whether any easements might restrict your ability to do so.

Another common condition is a builder’s report. This report generally allows you to obtain a report on the condition of the home and other improvements on the property.

We recommend you speak with your lawyer prior to making an offer so that you can consider the number of conditions to include and ensure that you are sufficiently protected.  There may also be instances where you can make enquiries before putting forward your offer, such as obtaining the builder’s report or asking your lawyer to take a look at the title to the property before you proceed.

Whatever you decide, it is important to get the proper advice and support.  A signed Agreement for Sale and Purchase is a legally binding document. Your lawyer will talk you through it, answer any questions, and ensure it is correct before you sign.

A timely reminder to review your affairs

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As we slowly return to our day to day routines following the COVID-19 lockdown, it’s a good time to reflect on the lessons learnt from the paired back existence we experienced during these unprecedented times. One of the overwhelming messages to come out of the lockdown, was an even greater appreciation of our families and our desire to protect them.

It is at times like these, that we should take stock of our personal affairs to ensure that in the event that something happens to us, the very people we want to protect are not left behind to sort out our unfinished business. A timely reminder to review your personal affairs and ensure everything is in order. Below are some areas worthy of consideration:

Wills

Anyone over the age of 18 years should have a Will. A Will is a legal document which sets out how you want your estate to be administered upon your death. It is legally binding. Without it, your assets will be administered according to a formula set out by the law and this may not align with you or your family’s wishes.

If you have already put a Will in place, you should continue to review it and ensure it reflects your current intentions and wishes. Perhaps you have married since you last made a Will, and if so, you should check to ensure it was made in contemplation of marriage otherwise you may find that it’s invalid. Likewise, if you have recently separated or divorced, it is likely that the intentions for your estate will have changed.

Enduring Powers of Attorney (EPA)

Putting in place an EPA enables you to decide ahead of time who will make decisions for and about you if you become unable to make those decisions yourself. An EPA gives a specific person the legal power to act on your behalf if you become “mentally incapable”.

If you don’t make an EPA, and you become unable to make your own decisions, or unable to communicate your decisions to others, people close to you will need to apply to the Family Court to have the Court make various kinds of decisions about your life, or the Court may appoint someone to make those decisions for you.

You can put in place an EPA for personal care and welfare and one for your property and finances. You can have either type of EPA or both, it depends on your personal circumstances.

Memorandum of Wishes

If you have a family trust, putting in place a Memorandum of Wishes is one way that you, as the settlor, or creator of the trust,

If you have already put a Will in place, you should continue to review it and ensure it reflects your current intentions and wishes. Perhaps you have married since you last made a Will, and if so, you should check to ensure it was made in contemplation of marriage otherwise you may find that it’s

can signal to the trustees your intentions. A Memorandum of Wishes is read alongside the trust deed and trustees should have regard to the Memorandum of Wishes in the exercise of their discretionary powers in dealing with the trust assets and making distributions.

Lease Renewals

The compulsory shutdown of many businesses over the lockdown saw a number of leases being considered in greater detail. It is important that you review your lease documents
to ensure that you have current arrangements in place. If
the renewal or review dates have passed and the lease arrangement remains in place, it is likely it will be on a month by month basis with either party having the ability to terminate the lease with one month’s notice. This situation does not provide a great deal of financial certainty moving forward.