Are you purchasing your first home? Completing a Kiwisaver First Home Withdrawal may help you get on the property ladder.

There are several things you need to have in place in order to move into a retirement village. Residents need to have a valid Will and Enduring Powers of Attorney in relation to Property and Personal Care and Welfare. Your solicitor will need to provide the village with copies of your Enduring Powers of Attorney prior to taking occupation of the unit. Moving into a village will also involve signing an Occupation Right Agreement (ORA) with the retirement village. An ORA sets out the terms on which you can live in the village and the rights and obligations of both you and the village. You will be required to pay an entry payment on settlement, being your purchase price to live in the Unit. You will not own the unit like a freehold property, instead, you are given a right to occupy the unit and to use the village’s common areas. Below we provide information to answer commonly asked questions around ORA’s. What if my Trust is funding my entry payment? Most villages don’t allow a Trust to be recorded as the licensee under the ORA. If the entry payment is being funded by a Trust, there will need to be background documentation which records how those funds are being advanced, for example, by way of loan or by way of capital distribution. If the Trust is advancing those funds by way of loan, Trustees need to consider the DMF and any additional charges that will be deducted by the operator on termination of the ORA and how that will be treated. Most villages have a direction for payment on termination form that can be completed to record that on termination, the termination proceeds are to be paid to the Trust. What if I change my mind? Residents under every ORA have the benefit of a 15 working day cooling off period. Residents can terminate the ORA within 15 working days of signing it without having to give any reason. The DMF will not be charged where residents terminate under the cooling off period. Some villages offer a 90-day money back guarantee. This guarantee allows residents to terminate the ORA within 90 days of the commencement date, if they are unhappy with their decision to move into the village or it does not meet their needs. The DMF will not be charged where residents terminate under the 90-day money back guarantee. Residents need to meet certain criteria to cancel under this right. What is a deferred management fee (“DMF”)? A DMF is the operators charge for managing and maintaining the village, your unit and the facilities. The DMF is charged as a percentage of the entry payment up to a maximum 30%. Some villages offer a choice in DMF at either 30% or 25% with the latter option having a higher entry price. The DMF accrues over time, generally between the first 2 to 5 years of residency. The DMF is charged on termination of the ORA, and is deducted from the monies owing to the outgoing resident. What is a weekly village fee? The weekly village fee is the resident’s share of the village outgoings which are payable by the operator. Generally, the weekly village fee is charged monthly by direct debit. Weekly village fees can be fixed, or subject to change. Generally, where a weekly village fee is subject to change, it is increased by the percentage change in CPI on 1 April in each year. When the weekly village fee ceases to be payable differs between villages. Commonly, the weekly village fee ceases to be payable on the termination date of the ORA, provided the resident has vacated the unit and removed all of their possessions. Will I incur any additional ongoing costs? Separately to the weekly village fee, residents will be liable for all utility costs consumed in respect of the unit, such as electricity, gas, telephone, internet and in some cases water. Some villages purchase such utilities in bulk and build these costs into their weekly fees. Where the unit is a serviced apartment, residents will also be liable for ongoing weekly service fees for services such as meals, laundry, cleaning etc. Additional services charges for services such as hairdressing and podiatry, will be charged in addition to the regular fees. What if I need a higher level of care? Residents and their families should make enquiries as to what facilities or options are available for higher levels of care, such as serviced apartments, care suites and hospital/rest home facilities. It is important to understand what terms apply to transfers within a village, for example, will you be charged a transfer fee and if so, how is this calculated. Where a village offers care suites under an occupation right agreement, residents need to understand the DMF structure which will apply. Generally, where residents transfer from an independent living unit to a care suite, the DMF that has accrued under the independent living unit will not be applied to the care suite, and a second DMF will be charged on the care suite. Often a DMF under a care suite will accrue at a faster rate, such as 12% in the first and second year of occupancy, and 6% in the third year. Some villages charge an initial % on the commencement date. Can I terminate the agreement? You can terminate an ORA at any time on giving the required notice and the ORA will terminate on your death or the death of the survivor of you (in the case of joint residents). There are limited grounds on which the operator can terminate an ORA, such as where you can no longer live safely in the village, if you breach the terms of the ORA in a material way, if you cause any serious damage or distress to someone in the village, or you have permanently abandoned the unit. When do I receive the money owing to me following termination? Generally, residents will not receive the monies owing to them until the unit is re-licensed to a new resident, that resident has signed their ORA, the cooling off period has expired and they have settled their entry payment. Some ORA’s provide that interest will be paid on the monies owing to a resident for the period from the date that is 6 months following the termination date until the date the resident is paid. Some ORA’s provide a village contribution rebate whereby the DMF starts accruing back/gets credited back if the unit hasn’t been re-licensed within 9 months. If you are thinking of moving into a retirement home, contact Holland Beckett’s team for expert advice on ORA’s and planning for this phase of life.

When embarking on a residential building project in New Zealand, many homeowners choose to engage a Registered Master Builder. One of the key documents involved in such projects is the Master Build Contract — a standardised building contract provided by the Registered Master Builders Association, which provides access to the well-known Master Build 10-Year Guarantee. While this contract offers protections for both parties and a structured framework for the build process, obtaining independent legal advice before signing is crucial. Here\'s why: 1. Understanding the legal implications A Master Build Contract is a legally binding agreement. Legal jargon and standard clauses can sometimes obscure obligations or risks. A lawyer can clarify key clauses, such as: Payment terms and what happens in case of delays or cost overruns Liability clauses that may shift risk to the homeowner Termination provisions and how you can (or cannot) exit the contract This understanding helps you make informed decisions and avoids unpleasant surprises during the project. 2. Identifying potential risks Although the Master Build Contract aims to protect both the homeowner and the builder, it may not always cover every scenario relevant to your specific project. Legal advice can help identify risks such as: Ambiguous clauses that could be interpreted in multiple ways Inadequate provisions for project delays or cost overruns Unfavourable terms that could leave you financially exposed A lawyer may recommend amendments or additional clauses to better protect your interests. 3. Customising the contract for your project Every building project is unique, and a standard form contract may not cater to your specific needs. Legal professionals can help tailor the contract to: Reflect agreed variations to the build Include milestone-based payment terms Address site-specific issues (e.g. land covenants, access, or zoning conditions) Tie in with a contemporaneous land purchase Customisation ensures the contract aligns with the realities of your build. 4. Protecting your financial investment Building a home is often one of the largest financial investments a person will make. The Master Build Contract includes provisions around pricing, deposits, and progress payments — all of which can have major financial implications if misunderstood or mishandled. A lawyer can: Review payment terms to prevent overpayment or under-delivery Ensure retention money is handled correctly in accordance with the Construction Contracts Act 2002 Advise on guarantees and insurance coverage provided under the Master Build 10-Year Guarantee

Receiving the keys to your new home is a significant milestone. Clients often enquire about the exact timing on settlement day, especially if they are coordinating with moving companies or eagerly awaiting possession of their new home. Unfortunately, there is no “one size fits all” answer for when this will happen. Before you can take possession, the settlement process must be completed. This involves payment of the purchase price and transfer of the property\'s title. The timing of this process can be a bit unpredictable on the actual day of settlement. The key issue revolves around the exchange: the Vendor doesn\'t want to transfer the property without receiving payment, and the Purchaser doesn\'t want to pay without assurance of acquiring the property. Lawyers handle this by providing each other with \'undertakings\' – enforceable promises to carry out specific actions. These undertakings ensure everyone can proceed confidently with their respective tasks. There are 2 undertakings given on settlement, one from each lawyer. The Vendor’s lawyer undertakes to transfer the property\'s title to the Purchaser upon receiving the settlement payment from the Purchaser’s lawyer. The Purchaser’s lawyer can then pay the settlement payment to the Vendor’s lawyer and undertakes that the payment will not be altered or withdrawn. While this seems simple enough, there are several other steps that must align before you can get those precious keys. If the Vendor has a mortgage, their bank must confirm the amount payable to discharge the mortgage. This amount is confirmed the morning of settlement to include interest to that date; a key factor contributing to time uncertainties. The Purchaser\'s lawyer cannot release the settlement payment until the Vendor’s lawyer has given their undertaking, received any loan funds (if bank financing is involved), and the Purchaser’s contribution is deposited into the lawyer’s trust account. So, there is a bit of patience required on settlement day, but this ensures that the various factors align so you can take possession of the property without a hitch. Rest assured that your lawyer is working diligently to ensure a smooth transition, enabling you to step into your new home with confidence.