House Archives | Edmonds Judd

Karen’s Next Chapter: Understanding Reverse Equity Mortgages

December 5, 2025

Estate, Financial Literacy, Home Ownership, House, Retirement Planning, Senior Living, Uncategorized

Once upon a time in a quiet New Zealand neighbourhood lived Karen—a warm-hearted retiree whose home was her greatest treasure. Every corner of it held memories: family dinners, garden mornings, and decades of life’s twists and turns.

But as time went on, Karen found herself wishing for a little extra breathing room…

🌼 A long-overdue renovation

🚗 A reliable new car

🩺 Extra funds for health and comfort

✈️ Or perhaps that long-dreamed-of holiday to somewhere sunny

One afternoon, over a cup of tea, Karen heard a gentle whisper of possibility:

“What about a reverse equity mortgage?”

Banks—especially Heartland Bank—offered something that caught Karen’s attention: a way for homeowners aged 60+ to unlock some of the value in their home without selling it and without monthly repayments.

It felt almost magical. A way to stay in her beloved home while gaining the financial support she needed.

But Karen was clever. She knew every good story has fine print.

✨ The interest would quietly grow over time,

✨ The loan would wait patiently until she moved, sold, or passed on,

✨ And then it would be repaid from the value of her home.

It could be a helpful choice—but it also meant leaving less equity behind for her family.

So Karen did what wise people do:

🗝 She talked openly with her loved ones

📜 She met with a solicitor to understand every detail

❤️ She made her decision with clarity and confidence

And in the end, Karen discovered that with careful thought and the right guidance, a reverse equity mortgage could be the solution she needed for her next chapter.

Georgia Ellen

Property Briefs

July 7, 2025

Business Ethics, First Job, House, Media, Politics & Government, Social Media, Trusts

Healthy home standards compliance from 1 July 2025

First introduced in 2019, healthy home standards are the minimum legal standards expected of rental properties in New Zealand. These include:

Heating (provision of functioning and fixed (not portable), heaters in the main living room)
Ceiling and underfloor insulation, and
Adequate ventilation (functioning doors and windows, and extractor fans in the kitchen and bathrooms).

From 1 July 2025, all landlords are responsible for ensuring their rental properties comply with healthy homes standards (and continue to comply with them over time). Landlords who do not comply will be in breach of the Residential Tenancies Act 1986 and can be penalised up to $7,200 per breach. Landlords who are ignorant of these changes or disorganised will not be excused.

Landlords in new or renewed tenancy agreements must include a signed statement detailing the property’s compliance with the standards. Failing to do so can result in a penalty. There are also penalties to the landlord if they provide misleading information in compliance statements.

If you are a tenant and you are concerned that your rental property does not comply with healthy homes standards, we recommend having a friendly chat to your landlord first. Failing that, please contact us and we can help you explore your options.

On the other hand, if you are a landlord and are concerned about your obligations under the healthy homes standards, please come and see us for advice.

Sunset clauses – the new bill introduced into Parliament

The Property Law (Sunset Clauses) Amendment Bill was introduced to Parliament on 9 April 2025 and is tracking towards its first reading. The bill is aimed at restricting sellers developing vacant plots of land from using ‘sunset clauses’ to cancel sale and purchase agreements. It also provides an extra layer of protection to buyers who, in good faith, have made the commitment to purchase the property.

In this context, a ‘sunset clause’ is a provision added to an agreement for the sale and purchase of a plot of land in development which allows the seller or buyer the option to cancel the agreement if the development is not complete by the specified date.

There have previously been situations in which sellers have used these clauses to cancel an agreement, where there have been delays in development, only to then go and list the property at a higher price.

This legislation would require the seller to obtain the buyer’s written consent to cancel the agreement under a sunset clause. There would also be the requirement to give sufficient notice of, and reasons for, the proposed cancellation to the buyer in advance. This is the extra layer of protection given to the buyer.

If the buyer does not consent to the agreement being cancelled, the seller would need to apply to the High Court for an order permitting the cancellation. On the seller’s application, the court would only make the order if it is satisfied that its making would be ‘just and equitable in all the circumstances.’ The court would consider various factors including whether the seller has acted unreasonably or in bad faith, the reason for the delay in completing the development, whether the land has increased in value and the effect of the cancellation on the buyer.

If this law is passed and you are a seller or buyer who seeks to activate a sunset clause, please get in touch with us – we would be happy to assist you.

Real estate agent commission – claim or not to claim?

Before a real estate agent lists a seller’s property, the parties enter into a ‘listing agreement’ or ‘agency agreement,’ authorising the agent to sell the property on the seller’s behalf.

The real estate agent receives a commission (a percentage of the sale proceeds) for introducing the buyer to the property. The real estate agent usually takes their commission out of the deposit the buyer pays when the agreement for sale and purchase becomes unconditional.

However, there are some situations in which an agent is not entitled to be paid their commission:

Where there is no listing agreement in place
If an agreement for sale and purchase does not become unconditional and is cancelled, and
If the property is pulled from the market and the seller cancels the listing agreement (but note that the agent may still charge a fee).

If you are considering selling your property and have any questions about entering into a listing agreement, please come and see us for advice first.

DISCLAIMER: All the information published in Property Speaking is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are those of individual authors, and do not necessarily reflect the view of Edmonds Judd. Articles appearing in Property Speaking may be reproduced with prior approval from the editor and credit given to the source.
Copyright, NZ LAW Limited, 2022. Editor: Adrienne Olsen. E-mail: [email protected]. Ph: 029 286 3650

Life Stage – First Home

June 18, 2025

Economy & Finance, Employment, Estate, House, Media, News, Online, Uncategorized

It felt like Bob’s life had been turned upside down. Not only had his father, Steve, passed away recently leaving him upset and overwhelmed, but his burger bar business was also struggling. Bob had put all his life savings into his burger bar, which he opened 6 months prior. Further adding to the stress, Bob currently did not have a home. He had been couch-surfing at friends places while he saved up enough to rent a place of his own.

After a few difficult months, Steve’s estate was finally settled. As one of the beneficiaries, Bob received a substantial inheritance. Though the money offered some relief, Bob knew he needed to use it wisely. His first step: finding a home. He realised that in order to take care of his business and himself, he needed a stable place to live and rest, putting him in a better frame of mind to make smart business decisions.

As Bob now had more funds than he had expected to receive from years of working, he decided this was the right time to buy a property rather than rent. He browsed listings on local real estate websites and soon found a small, tidy place in a quiet neighbourhood—within his budget and close to his burger bar.

He decided to call his lawyer and ask for the things he should consider before making an offer. His lawyer guided him through several key considerations:

Conditions in the Sale and Purchase Agreement: He needed to decide whether he wanted to include conditions in the agreement. He already had the funds available for the purchase so he did not need to make it conditional on finance. Bob did not realise that he could also include other conditions such as a LIM report, builders report, and toxicology report. Bob decided to include each of these as it was better to make sure there were no big issues before being locked in a deal.

KiwiSaver: If Bob has KiwiSaver funds, he would need to fill out an application to withdraw the funds from his provider. He would need a solicitor to witness him signing this as it could not be left until the last minute.

Insurance: The lawyer stressed to Bob the importance of checking he could obtain insurance cover for the property prior to going unconditional. Also, if there were any issues under the builders report / LIM report / toxicology report, he would need to disclose said issues with his insurer.

–

Relationship Property: Bob had not had the time to date with everything going on but was made aware to obtain advice in this regard once he had a partner in the future.

Bob took all the advice into consideration and obtained all recommended reports. Within weeks, his purchase when unconditional, and weeks after, settled.

Bob was beyond happy, he now felt as though he had the stability he had been searching for. This feeling lasted only a few minutes though as Bob was about to receive a call in relation to his business that would change everything…

Macayla Brdanovic

Estate Planning and the Unexpected: A Family Law Story

May 23, 2025

Employment, Estate, Health Issues, House, Latest news, Social Media, Trusts

A tear trickled down Luke’s face as the hearse carrying his late father, Steve, drove away from the funeral home and down the road. It had been a beautiful service and his brother Bob, who owned a burger bar, provided some excellent catering. Steve had been a wonderful father, and had prepared for this moment by getting his Will and Enduring Power of Attorney sorted out nice and early.

As Steve’s executor, Luke immediately set about administering his father’s estate. It was an immense job, so he enlisted the assistance of Edmonds Judd. They met with him and explained the administration process and gathered from him an idea of Steve’s assets and liabilities. They applied to the High Court for Probate and contacted the banks, insurers and real estate agent on Luke’s behalf. They found the odd liability, such as a small credit card debt, and closed any outstanding accounts.

Luke was relieved. This was starting to look easy!

He put down the phone after talking to his helpful solicitor and poured himself a nice cup of tea. Then, just as he was sitting down, he heard a knock on the door.

“Who could that be?” he wondered aloud. He wasn’t too surprised, as he had had many callers recently offering their condolences. He was surprised however, to open the door to see himself staring back at him. Luke blinked in surprise.

“Luke”, the doppelganger said. “I am your brother. Your long-lost twin brother, as a matter of fact. I was adopted when we were just babies. I’m guessing from the look on your face that Steve never told you?”

Luke was shocked. The stranger was indeed identical to him, right down to the freckles on his nose and the way he turned up the cuff on his jeans. The stranger continued.

“My name is Han, and it’s nice to meet you. Listen, I know this is awkward timing, but my understanding is that Steve left behind a sizable estate. I’m going to need to some of that money, as I have significant gambling debts I need to pay off. That won’t be a problem, right? After all, it’s only right that I get a slice of the pie”.

Luke invited Han in for a drink, and pondered what to do next. Once Han had taken a few old photos of Steve and left, Luke picked up the phone and called his solicitor back, explaining the whole thing. His solicitor was very helpful.

“You see Luke, sometimes children who are left out of their parent’s Will can make a claim under the Family Protection Act 1955. The law says that parents have a moral duty to provide for their children. However, because Han was adopted out as a child, he won’t be able to successfully make a claim. The Adoption Act 1955 changes the legal relationship between adopted child and birth parent. Steve did not have to provide for Han in his Will”.

“I don’t know,” said Luke. “Is it really fair that Han not get anything out of the Estate?”

“Well, if you and the other beneficiaries of the Estate feel that way, you can enter what’s called a Deed of Family Arrangement”. It would record that the beneficiaries have come to an agreement to do something different to what’s in the Will, and that would allow us to make a distribution to Han. You would need to get all of the beneficiaries to agree, though”.

Luke thanked his solicitor and hung up the phone. He had a lot to think about. He decided to give his brother Bob a call, to see what he thought. But Bob was having his own problems at his burger bar…

Jamie Graham

Are you an artist, a composer, an author? Are you in a relationship? If so, then you need to seriously consider a contracting out agreement.

May 19, 2025

House, Media, News, Online, Property, Relationships, Social Media

Are you an artist, a composer, an author? Are you in a relationship? If so, then you need to seriously consider a contracting out agreement.

Copyright is treated as relationship property for the purposes of deciding who gets what at the end of a relationship. This means that, if you separate, your ex could have a claim over the copyright in your work.

Owning copyright in your work means that you have the exclusive right to control how your work is used. Importantly, owning copyright means that you can prevent someone from making copies of your work. But, if it ends up in the hands of your ex? Well, that could lead to results that you won’t like. For example:

That novel you slaved over for weeks, months, and years part-time while you were working on a construction site during the day? Your ex might be able to sell copies of it after the relationship is over and make money from your efforts.
That series of paintings you lovingly painted and kept in your own private collection, while you successfully commercialised the rest of your works? Your ex might be able to have t-shirts made for sale with copies of those paintings in your private collection.
That carving you created painstakingly on your weekends off? Your ex might be able to flood the market with thousands of copies, devaluing your sculpture and the prestige.

If you want to avoid this outcome, then your best option to reduce this risk is to enter a contracting out agreement with your partner. Under a contracting out agreement, you and your partner can agree who gets what in the unfortunate event that your relationship doesn’t stand the test of time. If you want a contracting out agreement, you’ll need to see a lawyer to make sure that you comply with the legal requirements for these agreements and ensure your best chance of any agreement being enforceable in Court.

Steve’s Big Decision: He’s ready for the next chapter – Retirement

May 14, 2025

Estate, Health Issues, House, Kids, Latest news, Media, Property, Relationships, Retirement

Brought to you by Edmonds Judd – Your Life Your Lawyers

Steve has spent the last 45 years building a life he was proud of—raising a family, growing his business, and working hard every step of the way. But now, for the first time in decades, he was thinking about something new: retirement.

The thought was both exciting and overwhelming. Should he downsize to a smaller home? Maybe move into a retirement village? What about his Will—did he have one and if so, was it up to date? And who would make decisions for him if one day he couldn’t?

That’s when Steve decided it was time to talk to someone who understood the journey ahead—someone who specialised in elder law.

At Edmonds Judd, Steve found the guidance he needed. The team took the time to sit down with him, listen to his concerns, and explain everything. This helped Steve put a clear, confident plan in place—updating his Will, setting up Enduring Powers of Attorney, and walking through the legal details of retirement village living. Most importantly, they made sure Steve’s wishes—and his family—were protected.

Steve created an estate plan that matched his life now—not the one he had twenty years ago. Steve knew that his family would be protected, and that his wishes would be carried out no matter what the future held.

He learned that retirement planning wasn’t just about money—it was about peace of mind.

“It’s not just legal paperwork,” Steve told his children Luke and Sally one evening, “It’s making sure you’re all taken care of, no matter what.”

Thanks to Edmonds Judd, Steve now looks forward to his next chapter in his life with confidence and clarity.

Rachael Beattie

Over the fence

May 5, 2025

Health Issues, House, Latest news, Media, Relationships

Employer obligations: mental health

As an employer, you have a duty of care for both the physical and mental health of your employees’ health.

Health and Safety at Work Act 2015 (HSWA): Under the HSWA, you have an obligation to minimise the stress and mental health impacts that arise from within your workplace. This includes monitoring increased workloads to ensure your employees are not overexerted and stressed, investigating any bullying claims and ensuring a safe working environment.

Employees’ rights: Your employees are not obliged to disclose a mental health condition unless it will directly impact their ability to safely perform their role. If you ask about a mental illness that directly impacts their ability to perform their role safely, they must tell the truth. There is a risk of disciplinary action if they do not provide you with the correct information.

You cannot discriminate against any employee (or potential employee) if they have a mental illness. These discriminations could be:

Not offering a job due to their disclosed mental illness
Not promoting as a consequence of their mental illness, or
Providing less favourable terms of employment as a result of their mental illness.

Employee action for perceived discrimination: If your employee believes they are being discriminated against, they may wish to discuss this with you to try and resolve the matter. If this is not successful or not appropriate, they can seek support from the Employment Mediation Services, raise a personal grievance or make a complaint to the Human Rights Commission.

What can employers do? You can help to facilitate a positive working environment and take steps to protect your employees by:

Providing support if a traumatic work event occurs
Offering flexible working environments including hours/days worked and the location for work to be completed by, for example, using other machines
Allowing time off to attend appointments
Providing resources such as counselling, work mentoring or stress management courses, and
Changing your employee’s duties.

It is important that you talk with your employees and take necessary steps to support them the same way you should protect their physical wellbeing.

Updates to the residential tenancies legislation

April 2, 2025

Animals, Commercial, Employment, House, Latest news, Media, News, Property, Rural

Tenancy terminations and pets

The Residential Tenancies Amendment Act 2024 has significantly updated the Residential Tenancies Act 1986 and the laws governing the relationship between landlords and tenants.

Some of these updates took effect on 30 January and others are expected to roll out in the remainder of 2025. These updates transform the rights and obligations of landlords and tenants – for better or for worse. We summarise the key updates below.

Termination of tenancies

No reason needed to terminate tenancy: Since 30 January 2025, landlords are no longer required to provide a reason to their tenants for terminating a periodic tenancy; they simply have to state they are giving 90 days’ notice of termination. For clarity, a ‘periodic tenancy’ is a standard tenancy with no end date, unlike a ‘fixed term’ tenancy which lasts for a set amount of time, say 12 months. Before 30 January 2025, landlords had to give grounds for terminating a tenancy, such as for demolition or extensive renovations.

Terminating on ‘special grounds’: Landlords now only need to give 42 days’ notice when they are terminating the tenancy on special grounds, including if a family member needs to live in the property as their main residence, or the property has been sold and needs to be vacated for the new owners to take over. Until 30 January, landlords had to give 63 days’ notice.

More rights for tenants: The legal rights and abilities of tenants have also increased. Tenants now have up to 12 months to apply to the Tenancy Tribunal for an order declaring a termination notice to be unlawful and that the landlord has retaliated against the tenant for enforcing their legal rights, or in response to legal actions taken against the landlord by another person or body. If a tenant applies within 28 days of receiving the termination notice, they can request that the notice be cancelled.

Before 30 January 2025, tenants only had 28 days to apply to the Tenancy Tribunal in respect of a notice in general.

Tenants also now only need to give 21 days’ notice for ending a periodic tenancy. Previously, they had to give at least 28 days’ notice.

The Amendment Act also confirms that tenants may leave their tenancy at shorter notice if they, or one of their dependents, are experiencing family violence.

It will be interesting to see how these amendments play out, especially when reviewing future decisions of the Tenancy Tribunal, including where tenants dispute termination notices. We touch upon other changes and updates to the powers of the Tenancy Tribunal below.

As an aside, the ways in which landlords and tenants can give notice to one another has changed. The Amendment Act confirms that landlords and tenants can give notices in more modern ways, such as over text or messenger, rather than a physical written notice.

Pets

In the second half of 2025, we expect to see major law changes relating to pets kept in rental premises. Landlords will be able to require their tenant to pay a ‘pet bond,’ on top of their original bond, which can be an additional two weeks’ rent on top of the original bond. A tenant must obtain their landlord’s written consent to keep a pet on the premises. A landlord may refuse the request only on reasonable grounds, including the premises not being suitable for the type of pet or vice versa. It could be that the breed of dog is too large, and/or the nature of the breed is considered destructive or aggressive and/or could be disruptive to neighbouring properties.

If a tenant’s pet dies during the tenancy, the tenant is entitled to ask for the return of the pet bond from the landlord less any compensation for any damage, and reasonable wear and tear attributable to the pet.

We look forward to seeing how these new rules relating to pets play out.

Tenancy Tribunal

Since 20 March 2025, the Tenancy Tribunal should become quicker and more efficient in its day-to-day operations. The Tribunal now has, for example, the ability to determine matters ‘on the papers’ (considering an application and response, then making a decision) without the need for a hearing.

In more complex and technical cases, and where there are major factual disputes, however, it is likely that the Tribunal will still require a proper hearing.

New deed of lease documentation

April 2, 2025

Commercial, Employment, House, Media, News, Property

Landlords and tenants should be up to date

In November 2024, The Law Association of New Zealand (TLANZ), formerly the Auckland District Law Society, released an updated version of the standard form deed of lease document, its 7th edition.

This new edition of the deed of lease (DoL) includes a number of new or varied provisions that TLANZ has included in response to the evolving commercial leasing landscape; in some cases these provisions address pitfalls in earlier DoL editions that sought to deal with issues that arose during Covid. The result is that there are a number of new default provisions for both landlords and tenants to consider when entering into a lease, and new procedures to be aware of that didn’t form part of previous leases.

Rent

Numerous provisions affecting rent, rent adjustment and rent abatement have been included in this new DoL. Where previous DoL editions referred only to CPI or market rent adjustments, the 7th edition includes an option in Schedule 1 to include a fixed rate adjustment for rent. That means that on the rent adjustment date recorded in your lease, the rent will be adjusted by a fixed percentage, rather than an adjustment being based on market rent or a CPI calculation.

There are benefits in this approach for both landlords and tenants. It provides a greater level of certainty for anticipating rent increases for tenants and income for landlords.

In addition to adding this option, the 7th edition has added to Schedule 1 an option to include upper and/or lower limits on rent adjustments. This sets out at the forefront of the DoL limits on any ratchet-type provisions which previously would have been buried in the standard/further terms of the lease.

Again, these provisions can give greater clarity to both parties around the extent of any rent adjustment, where the adjustment is not a fixed rate, and would advise tenants whether an adjustment could result in a lower rent payable (although it is rare that this would be the case).

Outgoings

The outgoings are other expenses under the lease that the landlord passes on to their tenant. The 7th edition requires, as the default position, that the landlord provides an annual budget of outgoings to the tenant.^[1]

This is a helpful inclusion for tenants as it provides certainty for budgeting and greater transparency around the costs additional to rent that the tenant must pay. This is invaluable information for anyone looking to enter into a lease and should be reviewed by any prospective tenant prior to entering into a new lease.

Reinstatement

Reinstatement is not a new concept under the lease, although provisions have been added to better define the rights and obligations relating to signage, tenant’s chattels, alterations and the premises overall.

An important aspect of this relates to the tenant’s chattels; this is a new inclusion in Schedule 6. Items listed here will inform the obligations around the removal of tenants’ chattels under the new reinstatement provisions.^[2]

Knowing what tenants need to remove, put back and who bears the cost is crucial to understand before entering into a new lease, especially if you plan on modifying the premises in any way before or during the term. A tenant will always need the landlord’s permission to make any changes or alterations, and it is best to get this in writing.

Rent abatement

If at any time a tenant cannot access the premises (or part thereof), they should receive a discount on the rent at the rate that is set out in Schedule 1. This has been included to set a starting point for rent to be discounted during no access periods rather than tenants having to endure a long determination process to agree the discounted rate during the term of the lease.

The rate recorded in Schedule 1 can be reviewed under the terms of the lease and the process for this is clearly set out.^[3]

These are just some of the changes that have been included in the Deed of Lease 7th edition. Whether you’re a tenant entering into a new lease for your business or you’re looking to get a lease prepared for a commercial property you own, talk with us so you understand and use these changes to ensure the terms are best suited for you.

^[1] Clauses 3.7–3.10 in 7th edition.

^[2] Clauses 23.1–23.5.

^[3] Clauses 29.3-29.5.

Fencing Feuds: How the Fencing Act Can Keep the Peace

March 11, 2025

Fiona Jack

Commercial, Employment, House, Kids, Latest news, Media, News, Property, Rural

Fences may not create friendships, but they do help make properties look tidy and defined. However, disagreements over who should pay for them can quickly turn a friendly wave into a frosty silence. Fortunately, the Fencing Act 1978 sets clear rules to help property owners handle fencing disputes without unnecessary stress.

Who Pays for the Fence?

If you are building or replacing a fence on a shared boundary, your neighbour is generally required to share the cost—provided the fence is “adequate,” meaning it’s reasonably fit for purpose. Before you start digging, discuss your plans with your neighbour. If you cannot agree, the Fencing Act provides a formal process to resolve disputes.

A Formal Process with Strict Timeframes

If you want your neighbour to contribute, you must serve them with a fencing notice detailing the fence type, cost, and who will build it. They have 21 days to agree or object. If they don’t respond, they are deemed to have accepted and must pay their share.

If they object, they must issue a cross-notice within 21 days, outlining their concerns or suggesting changes. If no agreement is reached, mediation, arbitration, a Disputes Tribunal, or a District Court ruling may be needed.

Common Fencing Issues

What if my neighbour wants a premium fence, but I prefer something simple?
They can only require you to pay half the cost of an adequate fence—not a luxury upgrade.

What if my neighbour sells their house mid-process?
You will need to start over with the new owner.

Can my neighbour refuse to let the builder step onto their land?
Yes, but you can seek a court order for reasonable access.

What if they damage the fence?
They must cover the full repair cost.

What if urgent repairs are needed while they are overseas?
You can fix the fence and recover half the cost when they return.

Fencing Around Swimming Pools

If your neighbour installs a swimming pool near the boundary, they must fence it in. You may need to contribute, but only up to the cost of a standard boundary fence.

Height Restrictions

Most fences can be built without needing council consent. However, local council rules may impose restrictions, particularly in heritage areas, so it is always worth checking before starting work.

Need Help?

Navigating fencing laws can be tricky but getting it right the first time saves headaches. If you need advice or assistance, the team at Edmonds Judd are here to help your fencing project go smoothly— hopefully without neighbourly disputes turning into courtroom battles.