Hawke's Bay Property Investors' Association

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30-04-2009

POLITICAL & REGULATORY REPORT for APRIL 2009

It will be recalled that the Bill repeals and replaces the original 1972 legislation to provide a new legal framework for the joint ownership and management of land, buildings and facilities by individual owners.

The key aspects of the Federation’s submission included supporting the:

  • Bill and its aim to modernise the way unit title apartments, houses, office blocks, retail and industrial buildings are built and managed
  • Enabling of a 75% vote in favour of change
  • Clarifying of body corporate operational rules
  • Providing for the body corporate to plan for and to fund long term maintenance
  • Clarifying insurance requirements
  • Enabling of the Tenancy Tribunal to be the first port of call for disputes
  • Mandating detailed information for purchasers, including body corporate rules, maintenance plans and audited account details and the

For property investors, when the bill comes into force, it will immediately affect the sale and purchase process by adding further costs. Body corporates and vendors will be required to provide a special set of disclosures to prospective purchasers. Conversely, purchasers may cancel a sale and purchase agreement if the body corporate or vendor fails to provide all relevant information about the property.

The Select Committee will commence the hearing of oral testimony on the Bill from early next month. And is required to conclude its work with the presentation of its report to Parliament by 5 September.

HOME INSULATION – Nats/Green Agreement

The National Party and the Green Party have reached an agreement on a nationwide home insulation programme.

Green Party co-leader Jeanette Fitzsimons is to work with Minister of Energy Gerry Brownlee to get Budget funding and finalise a home insulation agenda (a project favoured by Labour) that will take effect by July of this year. The program is likely to target private homes that are rented or owned by New Zealanders.

NO ASSET PROCEDURE – New bill

The newly introduced No Asset Procedure (NAP) an alternative to bankruptcy enabling people to have debts (of up to $40,000) frozen for 12 months, before having them discharged is to be reformed.

This matter is of interest to landlords as the bulk of the people undergoing NAP are beneficiaries or those in low paid employment. Those with debts are likely to have problems paying their rent (and arrears).

The Government has the Insolvency Amendment Bill before the Commerce Select Committee, which commenced hearings this week. The Bill bars anyone who took out debts fraudulently from entering a NAP. The bill also provides for the personal details of those undergoing NAPs to be recorded on the Insolvency Register for 5 years. It is current practice for those details to removed after 12 months.

Written submissions on the bill closed earlier this month on 16 April and the Committee must report its findings back to Parliament by 28 May.

 

END

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