Charities and Community Groups – choosing the right entity

In the present economic climate, getting into (or climbing) the property ladder is tough. To get a deal across the line, purchasers are increasingly looking to alternative ownership options. One such option we commonly see is ‘co-ownership’ of property between family members. Taking matters a step further than the traditional parental guarantee of a child’s purchase, we are now seeing co-ownership between multiple relatives (such as siblings and their spouses, or parents and all/some of their children). This is despite that not all owners intend to live in or maintain the property. While this sounds good on paper, unfortunately these arrangements often proceed without the appropriate documentation and can go wrong. Untangling them can be complex where there has been intermingling of purchase funds, family members not being treated equally, deaths occurring and relationships souring over time. What to do if you want to buy property with other people? If you are buying property with others (often who are not your spouse or partner), you should have a written agreement to cover key aspects. The terms can cover: ownership shares and monetary contributions to purchase (including bank loans); who will live in the property; who will pay property expenses and maintenance; what will happen if someone wants to sell the property and others don’t; what happens on death of a party; and how will any proceeds of sale be distributed. This way, if a dispute does arise there will be a clear path forward to minimise any fall out (if possible). Property Sharing Agreements are used to document these arrangements, which are simple but effective. Purchasers can also consider whether funds should be gifted or loaned. Our property lawyers can assist you with this process. You can also read our article on Gift v Loan. If you are wanting to buy property with your partner or spouse, there are a different set of questions and documentation to consider (for example, whether you need a contracting out agreement). Our dedicated family team can advise you on all aspects of relationship property. See also our article on Contracting Out Agreements 101. When it goes wrong A recent example of an undocumented family property purchase is the case of Boot (As Executor and Trustee of Estate of Hart) v Stephens [2023] NZHC 3863. Parents (the Harts) helped their daughter and her husband (the Stephens) buy a property.  The title said that each couple owned a 50% share of the property, but in reality, the Stephens contributed more to the purchase price. They also paid for most of the property expenses in that time. Years later, both the Harts died, and their other five children wanted to sell the property so that 50% of the sale proceeds could be distributed to the children via their mother’s estate. The Stephens claimed that they were entitled to 67% of the property. Additionally, they had lived in the property for 17 years and did not want to sell. Ultimately, the Court held that, given the family’s intentions and contributions, the Stephens were entitled to 66% and could buy out the estate’s 34% interest. Regrettably, the dispute and litigation took a toll on the siblings’ relationships. If you own property with your family and there is a dispute There are a number of options to resolve a dispute if there is no written agreement, including obtaining Court orders to force a sale under the Property Law Act 2007. First and foremost, our experienced litigation lawyers can help you to resolve matters before Court through negotiation or mediation, if possible. If negotiations are not successful, we can guide you through the litigation process.

The second phase of the firearms reform process that began in 2019 reached a new milestone on 24 June 2023 with the introduction of the Arms Amendment Regulations 2023. The new firearms registry set up under the Regulations is administered by the Firearms Safety Authority. The Authority launched in late 2022. It works with the Commissioner of Police to provide a range of services related to firearms registration. The registry will progressively impose reporting requirements on New Zealand’s 240,000 licenced firearms owners over the next five years. For simplicity, in this article, we refer to “guns” and “weapons”. But these obligations apply to all “arms items”: firearms, magazines, pistols, restricted weapons, ‘major parts’, and pistol carbine conversion kits. The Regulations do not currently require the registration of other parts which require a firearms licence to purchase. This includes grips, frames, chassis systems, flash suppressors, and silencers. Firearms that are inoperative do need to be registered. The only exclusions are antique guns, and airguns (except for “especially dangerous airguns”). Guns are classed as antiques if manufactured before 1899, are held solely as antiques, and if incapable of firing rimfire and centrefire ammunition. Firearms dealers are subject to somewhat more onerous obligations, and required to register their stock before 24 June 2025. The Authority will proactively contact dealers to advise them how to register their stock. From 24 June 2023, gun owners can voluntarily register their weapons at any time, either by setting up a MyFirearms account on the Authority’s online portal (which allows use of the RealMe service already in use by IRD and other departments), or by phone (freephone 0800 844 431). To register, gun owners will require details of their firearms licence, and the identification details for their weapons (including manufacturer, year of manufacture, action, calibre/gauge, and serial number). Any custom made weapons or other items without identifying marks will need to be registered over the telephone. All gun owners will need to have registered their weapons with the Authority before the close of 31 August 2028 by the latest. However, an earlier deadline can apply in some circumstances. Gun owners will need to take care of registration earlier than 31 August 2028 if: They apply for a new licence, endorsement, or licence renewal. New licence holders will need to register their guns when they get their licence. Renewing owners have 30 days after the renewal to register their guns. They buy, sell, supply, or receive a gun. The item that changes hands must be registered as soon as practicable after the weapon changes hands, and they must register all of their guns (even those not changing hands) within a month after the transfer. They import a gun. That item must be registered within 30 days after the gun is released by customs, and all their other weapons must be registered a month after that same day. They manufacture or export a gun. That item must be registered within five days after the export or manufacture is complete, and all their other weapons must be registered a month after that same day. They notify the Police that they have lost a gun, had one stolen, or have destroyed a firearm. In that case, they will need to register that gun immediately, and their other weapons within 30 days after that gun was lost, stolen, or destroyed. Ammunition does not need to be registered. However, if a gun owner buys ammunition after 24 June 2025, they will need to register all weapons within their possession within 30 days after the purchase. There is no charge for registering a firearm. Where a gun changes hands, the obligation to register the change in ownership is with the person making the transfer (ie. the seller or person giving the gun away or exporting it). If a licenced firearms owner has no items in their possession, they will still be required to register and declare “No Arms Items”. Guns can only be registered to one licenced owner. If a person is responsible for a weapon for a club, range, organisation, or business, they will need to register the firearm against their licence. If a gun is being loaned or given for safekeeping to another licence-holder for less than 30 days, the transfer does not need to be registered. Any longer term loans will need to be registered by the person handing over custody of the weapon. Gun owners who fail to register their weapons in a timely manner face a fine of $10,000, even for unintentional breaches of the regulations. Deliberately failing to comply the rules can lead to fines of $20,000, or up to two years in prison. So, if in doubt, it will pay to seek advice. The information held by the registry (ie. the firearms owned by a licence holder) will be accessible by the Police when carrying out their lawful duties. Upon request, holders of firearms licences and dealer’s licences to view their own information and confirm/verify the licence, endorsement, and permit status of any person they are buying or selling firearms to. However, they will not be able to see what firearms are owned by the other party. If in any doubt over your registration obligations, or if you have any questions at all related to firearms and the law, Holland Beckett Law’s wide-reaching practice – from criminal to civil, from city to country – allows us to provide the answers you need.

“If you’ve got nothing nice to say, say nothing at all” may be an old adage, but it still has force in the social media age. Seemingly ancient legal concepts can bite in unexpected ways for those freely expressing their opinions online. Some may be familiar, such as defamation and harassment. Others, like malicious falsehood, and the Harmful Digital Communications Act (HDCA), are less familiar. But they can all have significant consequences, and can even lead to criminal charges. In this article, we highlight some of the do’s and don’ts for interacting online. One of the major possible pitfalls is the law of defamation. This is the area of law aimed at protecting reputation. It enables someone who believes they have been unfairly disparaged to sue to regain their standing. Large sums can be awarded by way of compensation where defamation is established. The obvious tension between this ability to sue and freedom of speech has seen the boundaries of defamation gradually pushed back in recent decades. There are now a number of defences to these claims aimed at protecting those expressing their honestly held opinions and providing fair comment on matters of public importance. Truth is also a defence to defamation. But succeeding in using one of these defences can be challenging, and a good defence is second best to not being sued in the first place. The law is technical, but taking some basic steps can avoid a lot of upset: Where stating something about a person as a matter of fact, ensure it’s true. Avoid repeating rumours, gossip, and innuendo: those repeating defamation can be sued just as much as those originating it. In stating an opinion, ensure that you’re putting forward what you honestly think, and that you’re basing it on facts that you’re clear are correct. Avoid exaggeration or aiming to be malicious. It’s also easy to stray into making statements of fact in offering up an opinion. If you’re in charge of a page on social media, ensure you review it regularly and remove anything potential defamatory you find. There’s been a number of examples of page hosts being targeted for ‘permitting’ defamation to spread on their watch. This includes where you’re posting a review of a business, leaving feedback on someone on TradeMe or TripAdvisor, recounting your experiences of an employer, or commenting on a news article you’ve seen online. Businesses can also run into difficulties in with defamation (not to mention consumer and intellectual property law) in offering comparisons between their own products and services and those of their competitors. For example, Local toy manufacturer Zuru recently had to respond a claim by Lego that Zuru had breached trademark law in saying its products were compatible with Lego. Though Zuru succeeded, it will have incurred significant costs, and uncertainty, in defending the lawsuit. One of the areas that can give people grief with defamation is the fact you can be found liable even if you didn’t mean to do harm. Other parts of the law respond to those who do set out to cause loss or offence. Injurious falsehood allows someone to sue to be compensated for financial loss they have suffered as a result of lies knowingly told about them. While more limited in scope than defamation, there are fewer available defences than in defamation. Not all processes are focused on financial compensation, and some can involve the criminal law. An application can be made for a harassment order by the target of repeated hostile posts on electronic forums. Compared to claiming financial compensation, harassment orders are reasonably easy to obtain. Breaching a restraining order is a criminal offence, punishable by six months’ imprisonment or a fine of $5,000. The HDCA is perhaps the widest-reaching, and most potent, tool available for regulating online conduct. Any conduct found to be likely to cause serious emotional harm because it is menacing, grossly offensive, indecent, harassing, or malicious can give rise to an order under the HDCA. The District Court, in making an order, can compel harmful content to be taken down, and an apology made. The same penalties apply for breaching an order under the HDCA as with a harassment order. In particularly serious cases, the posting of the harmful communication itself can be punished by 2 years in jail or a fine of $50,000. At the same time, while seeking to protect people online, the Courts are sensitive to the values of freedom of expression. These laws are applied in a manner that balances that right. The above is only very general guidance and shouldn’t be relied on as legal advice. If you run into any of these unexpected pitfalls online, or feel you have been the target of harmful or inaccurate communications, Holland Beckett’s dispute resolution and litigation team can help.