INL Feb 15 2017 Digital Edition

16
Businesslink
FEBRUARY 15, 2017
Home purchase can
be unsettling-very
Farah Khan
The idiom, “Marry in haste, repent at
leisure,” is true of the property sector.
Many buyers feel that they were
too quick to grab deals to understand
the deal properly but soon find out that they
could have waited, sought professional advice
– both from property and legal experts. Those
signing documents without proper scrutiny
and advice are finding themselves in serious
trouble.
Binding conditions
The average buyer fails to realise that the
Agreement given to them by the real estate
agent during negotiations is legally binding.
Such an Agreement can include important
information such as (1) Whether the property
is freehold, leasehold, cross lease or a stratum
estate (2) A list of the chattels being sold with
the property (3) The rate of interest that the
parties must pay if settlement if either party
defaults on settlement (4) Any other conditions
such as builders report, finance, valuations or
LIM reports and (5) The settlement date.
It is important for buyers to realise that not
all sale and purchase agreements are standard
contracts.
Troubling variations
In many cases the ‘standard form’ approved
by the Auckland District Law Society (ADLS)
has options and clauses that an unsuspecting
buyer may not realise have been ticked or
removed.
I have seen contracts in which the
standard provision to check the legal title
of the property has been crossed out of the
fine print without the buyer realising that
the contract has become unconditional.
Some distressed buyers visiting
our office tell me that they have had a
‘Gentleman’s Agreement’ with their vendor
on several issues.
Invariably, when contacted, the vendor
would deny saying that they had given no
assurances and that they would abide by the
written agreement.
Serious misconceptions
There are two main reasons for buyers
ignoring lawyers at the time of signing an
agreement. First, the cost; they erroneously
think that lawyers’ fee can be avoided but
soon find out they were wrong. Second, the
property market is so hot that people are
pressurised into taking quick decisions.
It is also the responsibility of vendors to
understand the importance of transparency
and the warranties provided to the buyer
under the standard ADLS Agreement. If the
Vendor cannot provide certain warranties,
these must be omitted from the Agreement
or expressly stipulated.
It is not enough if the vendor or the
buyer state that they had no idea what was
going on and that they believed that the
agent had sorted out everything. It is not
the agent’s job but that of a lawyer to make
sure that you understand what you are
doing.
There is a Latin phrase that applies to
the property market – ‘Caveat Emptor,’
meaning, ‘Buyer Beware’
Farah Khan is Partner & Notary Public
Practice Manager at Khan & Associates
Lawyers and Notary Public based
in Papatoetoe, Auckland. She can be
contacted on (09) 2789361. Facebook:
Farahkhanlawyer.
Do not let your
opinion LAPse
Auckland Council Press Release
Progress on the
Provisional Auckland
Council Local Alcohol
Policy (LAP)
continues this month
with dates now set for formal
appeal hearings.
The Alcohol Regulatory and
Licensing Authority (ARLA)
will hold public hearings at the
Auckland District Court over
three weeks, commencing on
Monday, February 13.
Auckland Council welcomes
this announcement as once in
force, the LAP will be a key tool
for the Council to help minimise
alcohol-related harm across the
region.
Local policies
Under the Sale and Supply
of Alcohol Act 2012, Councils
can develop an LAP to establish
local policy on licensing matters
such as the location, density
and trading hours of licensed
premises.
An LAP can influence where
new alcohol licenses are allowed
to establish; how many new alcohol
licenses are allowed; when
bars, restaurants and nightclubs
can sell alcohol; when bottle
shops and supermarkets can sell
alcohol; and when clubs (e.g.
sports clubs, RSAs) can sell
alcohol.
CBS Special
The Provisional Auckland
Council Local Alcohol Policy
includes regional policies as
well as some special rules for
the City Centre and suburbs
experiencing higher levels of
alcohol-related harm, referred to
in the policy as Priority Overlay
areas.
Auckland Council consulted
on its draft policy in 2014
and considered 2693 written
submissions and over 100 oral
submissions before the adopting
the provisional policy in May
2015.
Some organisations appealed
against the provisional policy
after it was adopted.
The legal hearing process
means appellants, registered interested
parties and the Council
can present their views on the
provisional LAP before ARLA
makes a final decision.
The Council is restricted
from providing public comment
regarding the appeals while they
are before the court.
To read the full Provisional
Auckland Council Local Alcohol
Policy document and view
the Priority Area maps, visit
aucklandcouncil.govt.nz and
search ‘Local Alcohol Policy’.
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