When will I get my keys on settlement day?

Significant reforms to New Zealand’s overseas investment regime came into force on 6 March 2026, marking a shift toward a more streamlined, risk‑based approach to overseas investment. The changes are intended to reduce processing times for low‑risk investments, while retaining appropriate scrutiny of transactions that may affect New Zealand’s national interest. Key changes include a revised purpose statement, a new national interest test and consent pathways, and a new ability for certain investor visa holders to purchase high‑value (>$5m) residential property. Revised purpose statement The purpose of the Overseas Investment Act 2005 has been updated to more clearly recognise the role overseas investment can play in increasing economic opportunity in New Zealand, while reaffirming that overseas ownership or control of sensitive New Zealand assets remains a privilege rather than a right. This change signals a more facilitative policy stance, particularly for lower‑risk investments, without reducing the Government’s ability to manage risks to New Zealand’s national interest. $5 million‑plus house pathway for qualifying investor visa holders From 6 March 2026, holders of certain investor‑class residence visas may apply for Overseas Investment Office (OIO) consent to buy or build a single residential property in New Zealand valued at $5 million or more. This pathway is available to holders of: Active Investor Plus visas Investor 1 visas  Investor 2 visas Key features of the pathway include: OIO consent must be obtained before acquiring the property (or the agreement must be conditional on consent). The pathway can only be relied on to acquire one residential property. Eligible visa holders can only purchase land that is categorised as ‘residential’ or ‘lifestyle’ under the district valuation roll, and not ‘sensitive’ for any other reason. This would exclude, for example, rural lifestyle blocks over 5 hectares, residential land on certain islands, or residential land adjoining the foreshore. The Overseas Investment Act does not restrict how the house is used, and it may be lived in, used as a holiday home, or used for business purposes. The property may be purchased through a company or a trust, but there are limits on who can hold ownership or control interests. Applications will be assessed under a streamlined process, and LINZ aims to assess most low‑risk applications within 5 working days. Application fees are inexpensive, currently ranging from $2,040 to $3,500 (depending on whether you buy existing or build new). This change represents a targeted easing of the foreign buyer restrictions for investors who commit significant capital to New Zealand. Primary consent pathway and the new three‑stage national interest process A central feature of the reforms is the introduction of a single national interest test, replacing the previous combination of the ‘benefit to New Zealand’, ‘investor’, and national interest tests for most overseas investments. Most applications will now proceed under the Primary Consent Pathway, which applies to significant business assets and most categories of sensitive land (excluding residential land and farmland). The new process operates as a three‑stage, risk‑based assessment: Risk identification stage: the OIO assesses whether the investment gives rise to national interest risks. If no risks are identified, consent will be granted at this stage. The statutory timeframe for decisions under this stage is 15 working days, but the OIO has indicated it aims to assess most low‑risk applications in around 5 working days in practice. Risk assessment stage: if risks are identified, a more detailed assessment is undertaken and consent may be granted with conditions. If the OIO have reasonable grounds to consider that a transaction may be contrary to New Zealand’s national interest, it will refer the application to the Minister of Finance for a decision. Where this stage applies, the timeframe for review increases by 55 working days. Under the current Ministerial Directive Letter, the OIO is expected to complete 80% of applications within half this time. Ministerial decision stage: only the Minister may decline consent, and only where the Minister considers the transaction is contrary to New Zealand’s national interest. The Minister may exercise judgment in this regard but must consider certain factors. The Minister may impose conditions on any consent granted at this stage. There is no fixed statutory timeframe for a Ministerial decision. The current fee for primary consent application is $22,800 for stage one assessment. If the application requires a national interest assessment a further fee of $83,700 applies. Other changes In addition to the headline reforms: New and amended consent pathways have been introduced for different asset types, including a dedicated production forestry pathway. The Overseas Investment Amendment Regulations 2026 support the new regime by defining qualifying investor visas, updating application categories, and making technical amendments to administrative and forestry‑related provisions. A new Ministerial Directive Letter confirms that the OIO must take a risk‑based, proportionate approach, focusing regulatory effort on higher‑risk transactions and aiming for much shorter timeframes than those prescribed for the majority of applications. Important reminders for investors and developers Agreements for sale and purchase involving overseas persons must be expressly conditional on obtaining OIO consent. A general due diligence condition is not sufficient to protect the purchaser and may expose the purchaser to enforcement action or penalties. While statutory timeframes have been reduced and processing is expected to be faster for low‑risk investments, this assumes that applications are complete, accurate, and well‑supported. Incomplete or poorly prepared applications risk rejection, requests for further information, or delays that can undermine transaction timelines. Investors should take legal advice before signing an agreement, submitting a tender or bidding at auction. Land status should be assessed early to avoid unintentional breaches of the regime. Holland Beckett can help with your investment needs including sensitive land assessments and advice on how the overseas investment regime might affect your transaction.

Taking over a commercial lease is not the same as signing a new one. An assignment places you into an existing legal relationship with all its history, obligations, and risks. Assignments commonly arise during business sales or relocations and are often completed under time pressure. However, both incoming and outgoing tenants need to understand that lease obligations do not simply disappear or reset. The legal framework for lease assignments is found in Part 4 Subpart 5 of the Property Law Act 2007 (“PLA”). In summary: The assignee becomes the tenant and assumes the lease obligations. The outgoing tenant remains liable unless formally released. Certain covenants are implied in every assignment. Against that backdrop, here are five key risks every commercial tenant should understand. 1. “Sleeper Rent” – Don’t Assume the Current Rent Is Market Incoming tenants often assume that the rent currently being paid reflects market value. That assumption can be costly. There is usually no warranty that the rent has not been discounted. If the outgoing tenant negotiated a concession, the next market rent review could result in a significant increase. Before taking an assignment, confirm: The review mechanism (market, CPI, fixed increase). When the next review occurs. Whether any side agreements or concessions exist. Never assume the current rent tells the full story. 2. Alterations and Reinstatement – You May Inherit the Bill Most commercial leases allow alterations with landlord consent. However, many also allow the landlord to require reinstatement at the end of the lease. An assignee steps into the tenant’s position. That means you may inherit reinstatement obligations, even for work you did not carry out. Before signing: Review all alteration approvals. Confirm whether reinstatement has been waived. Request photographs or a report showing condition of the Premises as at commencement date of the lease (if available). Clarify the landlord’s expectations at lease expiry. Dormant reinstatement clauses can become expensive surprises. 3. Maintenance – When Did the Clock Start? Repair obligations do not reset on assignment. While a tenant is not generally required to put premises into a better condition than required under the lease wording, broad “good repair” clauses can impose significant obligations especially where no schedule of condition exists. As an incoming tenant, you should: Inspect carefully. Review maintenance records. Confirm what condition the landlord considers acceptable. If structural or building services issues exist, you do not want to discover them at your cost. 4. Suitability and Compliance – The Lease Is Not the Whole Story Most ADLS leases state that the landlord gives no warranty that the premises are suitable for the tenant’s intended use. Responsibility for due diligence sits with the tenant. This includes compliance with: The Building Act 2004. Health and Safety at Work Act 2015. Fire and access requirements. Seismic strengthening requirements. Industry-specific licensing obligations. If compliance issues prevent you from trading, rent will generally continue to be payable. The cancellation provisions in the PLA (ss 245-246) allow landlords to cancel for breach, including non-payment of rent. A premises that “looks fine” may still be commercially unsuitable. 5. Guarantees and Continuing Liability – Assignment Is Not Always a Clean Exit One of the most misunderstood aspects of assignment is continuing liability. Under s 241 of the PLA, the outgoing tenant remains liable unless released. Directors who have given personal guarantees may also remain exposed until the end of the current term. This means: You may remain financially responsible long after selling your business. Liability can continue for years. Release should be expressly negotiated as part of the assignment. Without it, assignment does not equal freedom. Consent to Assignment Landlords cannot unreasonably withhold consent to assignment (under ss 224 and 226 of the PLA). However, what is “reasonable” depends on the circumstances, including the financial standing and experience of the proposed assignee. Early engagement and full disclosure usually smooth the process. Practical Takeaway Assignments of lease can be straightforward but only when approached methodically. Before signing, confirm: The true rental position. Rent review timing. Reinstatement exposure. Repair obligations. Compliance and suitability. Whether outgoing liability will be released. A lease is not simply a commercial document. It creates an ongoing legal interest in land. Stepping into that relationship without proper review can expose you to unexpected cost and stress. Careful due diligence at the front end allows you to focus on running your business not resolving avoidable lease disputes.

As New Zealand’s towns and cities grow and land becomes scarce, infill housing is an obvious solution to meet demand. Infill development encourages vibrant and inclusive communities by offering a range of housing choices, like duplexes, townhouses or apartments, close to existing amenities and public transport. It makes use of established infrastructure, helping to maintain and upgrade facilities, strengthening the neighbourhoods already in place. However, thoughtful design is key. New developments need to respect the look and feel of the area, be well connected and include private and shared outdoor spaces. Safety and privacy can be provided with smart layouts, noise control and good lighting. The consenting processes across the country all emphasise these principles, and planning rules are increasingly focused on ensuring new homes contribute positively to the surrounding environment. Ownership structure also matters when planning an infill project. There is often a strong preference for freehold titles because they provide a high degree of control and work well for standalone homes with private yards and driveways. Unit titles (or strata ownership) are commonly used for higher-density developments with shared spaces. However, either option can be made to work well in an infill context - it depends on the site, the design and the target market. Beyond design and ownership, the long-term success and value of infill housing developments often comes down to the legal frameworks established during the development process. These include land covenants, body corporate rules and residents’ societies, which govern how shared spaces are managed and how people live alongside one another. Well-drafted rules help prevent disputes, ensure maintenance is carried out and support a sense of community. Legislation has a key role to play in making better use of land for housing. In many areas, old land covenants (private rules between property owners, separate from council planning) are quietly stopping development. Removing these covenants is expensive and unpredictable. Either every affected owner has to agree (which is rarely practical), or you have to go to court and prove the covenant no longer makes sense. Policymakers need to consider a better way forward, such as imposing a time limit on covenants, or flipping the current legal process on its head: instead of proving a covenant is outdated, those who benefit from it would need to show that the covenants still serve the neighbourhood meaningfully. Doing so could unlock a surprising amount of land for new housing without putting genuine neighbourhood protections at risk. Done well, infill housing offers a practical, affordable and sustainable way to meet New Zealand’s housing needs. Whether you’re a homeowner with a large backyard or a landowner with a subdividable site, infill housing could be a smart way to unlock value. With expert legal and planning advice, and the right structure and support, you could turn unused space into valuable housing - and help your hometown grow responsibly. Thinking about developing your property? Hilary Anderson is a Partner at Holland Beckett, specialising in urban development and infill housing. This article was first published in the New Zealand Herald and Bay of Plenty Times, October 2025.