New Zealand Specific-Latest Property News (nz)-Property Law bill passed
Latest Property News (nz)
Property Law bill passed
New Zealanders will find it easier to understand and apply the rules governing their property dealings due to this week’s passage of the Property Law Bill by Parliament, according to Associate Justice Minister Clayton Cosgrove.
The Property Law Act 2007 clarifies and modernises the many complex, technical rules contained in the Property Law Act 1952 that apply to dealings in land and personal property.
“This legislation affects New Zealanders’ everyday lives, such as when they buy or sell a house, or if they run a business that involves borrowing money or leasing commercial premises,” Mr Cosgrove said.
These dealings can involve mortgages and guarantees to secure loans - all of which come under property law.
“It is vital that this law is up to date, clear and accessible.”
The new Act is largely based on Law Commission recommendations that aim to create modern, more user-friendly legislation for people buying or selling property, mortgaging their property to raise finance, or entering into commercial leases of land.
Mr Cosgrove said the changes bring certainty for people and protect their rights over property transactions, as well as ensuring the relationship between the parties to a lease is reasonable and fair.
Examples of reforms within the new Act include:
* Extending the current law that lessors cannot unreasonably refuse their consent to a lessee’s request to transfer or sublease premises to someone else or to a lessee’s request to change the permitted use of premises.
* Releasing lessees from liability for damage to commercially leased premises where damage results from events such as fire or flood or from any danger for which lessors are insured, provided that they have not intentionally caused the damage, or caused the damage through serious criminal offending, or caused the insurance monies to be irrecoverable.
* Clarifying the rights of owners of a piece of land that provides access to their respective properties, particularly about repair and maintenance costs and disputes.
* Extending the powers of the Court to make an order for compensation when modifying or extinguishing an easement or covenant, or to vary orders requiring the completion of work, such as the removal or trimming of trees, where circumstances change and the order is no longer appropriate.
Mr Cosgrove said the new Act clarifies the law and makes it easier to understand and apply.
“Promoting certainty in property dealings will reduce the number of property law disputes,” he said.