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Property

Over the fence

Environmental Law, Forestry, Local Government, Property, Rural Law, Rural Sector
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High Court upholds personal liability on forestry directors for environmental costs

A recent New Zealand High Court decision[1] has reinforced that company directors can be held personally liable for environmental damage caused by forestry operations.

The court determined that the directors of the companies involved should have taken action to clean up the forestry work. Failing to do so resulted in safety concerns: the land was prone to erosion and was steeply forested, resulting in a downstream of left-over woody debris, slash and sediment that was harmful to the environment and could be harmful in a flood.

The appeal affirmed the decision reached in the Environment Court in 2025.

The result of the High Court’s decision means that company directors in the rural forestry sector must take notice of the work completed on site and actively take steps to avoid issues. Directors cannot avoid liability by relying on corporate structures alone.

The directors had a duty to ensure consents and the Resource Management Act 1991 were complied with, and their failure to do so had serious financial consequences for them. As directors may be found personally liable, the culpability and costs for environmental breaches may not be limited to the assets of the company and may have financial implications for the directors personally.

 

Wilding pines: Budget 2026 injection

Wilding pines are self-seeded conifers. These trees can have environmental benefits including providing timber and shelter, storing carbon, decreasing erosion, and improving water and soil when planted correctly.

However, wilding pines can cause issues including invading tussock grasslands or native landscapes, drying out water catchments and raising the risk for wildfires. The impact can differ depending on the area.

To help manage wilding pines, in the 2026 Budget the government committed an additional $79 million to be spent over the next three years on the National Wilding Conifer Control Programme lifting the total committed funding to $109 million. The funding will go towards protecting farmland, water supplies, reducing wildfire risk in affected areas and the protection of native biodiversity.

New Zealand’s pine industry has become one of the country’s most important land uses shaping the economy, environment and rural communities. Managed plantations earn billions in export revenue each year. Wilding pines can jeopardise this.

The funding increase reflects New Zealand’s value for biosecurity protection and forward future-based thinking. Managing the spread of wilding pines will be mitigated through collaborative governance as volunteers, landowners, iwi and community trusts are also committed towards wilding pine control.

 

Rural Roading Resilience investment

Rural roads are relied on by communities, tourists and freight operators; damage to these roads can lead to communities being cut off in severe weather events and a risk to health and safety of those on the road. These roads provide, amongst other things, access for freight, school transport, tourism and emergency access.

The 2026 Budget committed funds to the Rural Roading Resilience project. Its purpose is to strengthen roads rather than continually repairing them once the damage is done. The Budget allocated $400 million towards a package of state highway resilience upgrades.

When severe weather events damage rural roads, access to the wider rural community can be limited until the issues are rectified. Strengthening roads before an issue arises aims to limit the impact of severe weather events on rural communities and to allow freight routes to continue with minimal disruption.

The funding will be used towards improving drainage, slope stabilisation and rockfall protection. It will also fund the development of flood mapping systems and emergency management tools, including hazard maps and evacuation or emergency information. This will help local councils and communities to plan for flood risks. The focus will be on predicted areas of consistent vulnerability. It is hoped better preparation will minimise the long-term costs incurred by taxpayers.

[1] Samnic Forest Management Ltd v Gisborne District Council [2026] NZHC 1880.

 

DISCLAIMER: All the information published in Rural eSpeaking 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 Rural eSpeaking may be reproduced with prior approval from the editor and credit given to the source.
Content Copyright © NZ LAW Limited, 2026.    Editor: Adrienne Olsen.       E-mail: [email protected]      Ph: 029 286 3650

Vacant

Vacant possession

Latest news, Media, Property, Rural, Tourism Risk Management, Trusts
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What does it mean?

If you are buying a property and intending to live in it, one of the first things that you should ensure is that the property is being sold with vacant possession.

Vacant possession means that you receive the property without the previous owners or tenants still occupying the property. This is an important feature of every property transaction; it is difficult to move in if someone else is still living in your new home. As a purchaser you might also include a clause requiring all rubbish and chattels to be removed by settlement date too, with the property to be left in a clean and tidy state.

Timing for vacant possession

The usual position is that vacant possession needs to be given to the buyer no later than 4:00pm on the settlement date. Best practice if you are selling is to have moved out as soon as possible, ideally before the settlement date so that there are no unnecessary delays on the actual day. This isn’t always possible if you are settling on the property you’re moving to on the same day. In this instance, it is important that you let us know not to settle until you can provide vacant possession. You must have all of your belongings moved, and any rubbish cleared from the property so your buyers can move in straightaway.

At the same time, it is prudent that the property that you are moving into is also vacant.

Clear communication with us regarding timing and/or pre-planning or storing items ahead of your settlement can help alleviate this kind of pressure on the settlement date. The times for performance of your settlement day obligations are all recorded in clause 3 of the standard sale and purchase agreement of real estate, along with the remedies available to buyers where vacant possession cannot be provided.

Tenanted properties

The circumstances where a property might not be sold with vacant possession would usually include a tenanted property being bought for an investment purpose where the buyer wants to retain the current tenant for rental income. Due to this being a relatively unusual occurrence, sellers looking to make their sale as attractive as possible should consider selling with vacant possession so their potential sales market is not limited.

If you are selling a property that is tenanted and want to provide vacant possession, you should ensure that you give your tenants the requisite notice under the Residential Tenancies Act 1986 that they need to move out in the required time period. Failing to do so could result in delays to the settlement of your sale that could potentially cause penalty interest to be payable to the purchaser.

Unable to provide vacant possession?

If you cannot provide vacant possession for your buyer on the settlement date, there are some actions that may be taken by the buyer set out in clause 3.13 of the agreement.

Refusal to settle: If you cannot move out and are still occupying the property or if your tenant has not moved out due to not being given the requisite notice or some other dispute, the buyer may refuse to settle. This can be a serious problem where you are relying on funds from your sale to complete a purchase; it may result in a chain of defaults for which you (as the originating defaulting party) may be liable. The cost for delaying settlement is generally prescribed by the penalty interest rate that is recorded on the front page of the agreement.

Withholding funds: If you have moved out but left belongings at the property, the buyer may seek to withhold a portion of the purchase price on settlement until this is removed. If you do not remove these items within an agreed time period, the buyer may retain those withheld funds. Again, if you require every penny from your sale proceeds, this could also trigger a chain of defaults.

Compensation claim: In some instances the buyer may claim compensation from you under the compensation process in clause 10 of the agreement. This will be a claim for the cost of removing any items left behind that the buyer has had to dispose of or any other costs that the buyer has incurred as a result of you failing to provide vacant possession. A disputed claim for compensation could result in a delay to settlement while the dispute is resolved.

Get organised

Due to the severity of the consequences of not providing vacant possession and the potential cost associated with failing to do so, it is crucial that you discuss with us your transaction timeline to ensure that your settlement proceeds smoothly rather than turning into an expensive nightmare.

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

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.

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

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

Consumer Guarantees Act vs Fair Trading Act

Property, Relationships, Retirement, Social Media, Trusts
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The purpose of these two laws are often confused: the Consumer Guarantees Act 1993 (CGA) and the Fair Trading Act 1986 (FTA) both provide legislative protection for consumers. However, they both address different aspects of consumer rights and business conduct.

The Consumer Guarantees Act 1993: The CGA only applies to goods and services bought for personal, domestic or household use, and not to those purchased for business purposes. The CGA states that goods must be of acceptable quality, fit for purpose and match the description provided by the seller. You cannot contract out of the CGA when you are dealing with consumers, even if you want to do so. There is a limited ability to contract out in business-to-business transactions provided certain requirements are met.

The CGA is important in that it ensures that goods and services bought for domestic use meet certain standards  following their sale.

The Fair Trading Act 1986: In contrast, the FTA provides protection for consumers from misleading and deceptive conduct of sellers in trade. The FTA cannot be contracted out of, except where both parties are in trade.

The FTA also promotes fair practice and conduct in relation to the supply of goods and services, meaning businesses must compete effectively and fairly. The CGA ensures all businesses operate on a level playing field, particularly for smaller businesses that could be taken advantage of by larger corporations.

If you find yourself in a position where false claims have been made in respect of machinery, livestock or equipment, you may have a claim under the FTA.

In addition, there may be other forms of redress ensuring fair treatment of consumers and business owners.

Emissions Trading Scheme

Commercial, Employment, Estate, First Job, Health Issues, Online, Property
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A change in approach?

The Emissions Trading Scheme (ETS) will turn 17 years old in September. An integral part of the Climate Change Response (Emissions Trading) Amendment Act 2008, the ETS has undergone significant change throughout its existence.

 

What is the ETS?

The ETS is New Zealand’s main tool for reducing greenhouse gas emissions. It essentially works by requiring participating businesses to measure and report on their greenhouse gas emissions. Businesses that participate in the scheme must surrender what is known as an ‘emissions unit’ for each tonne of carbon dioxide that they emit. One tonne of CO2 will cost you one emissions unit.

Over time, the government will reduce the number of units that are supplied into the ETS. The effect of this is that emissions units increase in demand as participating businesses buy and sell emissions units from each other. The price of emissions units in the ETS will (in theory) trend upwards, helping New Zealand to steadily move towards the goal of being a net zero emitter of greenhouse gas by 2050.

 

Recent developments in the ETS

There has been some concern regarding the conversion of productive farmland into forestry in order to gain emissions units. The government has announced changes to the ETS; its aim is to strike a balance between achieving New Zealand’s climate goals, and protecting the longevity of our most profitable farmland.

The government has signalled that the proposed changes to the ETS will be formally introduced to the House this year, with the new rules expected to come into force by October 2025.

 

All trees created equal?

The most significant proposed change to the ETS is the temporary prohibition of the registration of exotic forestry (non-native) for emissions units on Land Use Capability (LUC) 1–5 farmland. LUC separates land into eight categories based on an assessment of the land’s capability for use. LUC Class 1 land is the most versatile, with LUC Class 8 land being the least versatile.

At present, any tree can be planted on any farmland to earn emissions units (provided the tree species planted can reach at least five metres in height). This means there is no incentive to prioritise the planting of native trees over the planting of exotic species, such as the Radiata pine.

The proposed changes will also require ETS participants to exercise greater discretion in choosing which areas of farmland to plant on; should you wish to plant an exotic species, you must do so on your less productive land.

 

A flexible approach

The proposed rules are not entirely hard and fast as there is some wriggle room for ETS participants. Up to 25% of LUC Class 1–6 land on a farm can be used to plant exotic forestry for the purpose of registering it under the ETS.

The proposed new rules have also scrapped plans to include agricultural processors (meat processors, dairy processors, nitrogen fertiliser manufacturers and importers, live animal exporters) in the ETS. Agricultural processors had been due to enter the ETS from 1 January 2025, but the passing of the Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Bill on 26 November 2024 has stopped this.

 

Why the changes?

The proposed changes clearly signal the government’s desire to promote the planting of native species. It appears, however, that consideration has been given to the idea that ETS participants have benefitted from the planting of exotic species that can be planted en masse and grow quickly. This practice will remain, with the caveat being that it will need to take place on less productive farmland.

Updates to the residential tenancies legislation

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

Issues affecting finance and settlement

Employment, Media, News, Online, Property, Retirement, Rural
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Natural disaster risk and insurance

When you have lending secured by a mortgage on your home, it will be a condition of that lending that you have full replacement insurance for your house. This is a requirement for any new lending (and your lender won’t allow you to draw down the loan without seeing evidence that this in place), and an ongoing requirement with existing lending.

Insurers are now commonly asking whether the local council has recorded that a property could be impacted by any natural hazards (for example, whether it is in a flood zone). If it is noted that the property is potentially impacted by a natural hazard, the insurer may have some follow up questions before deciding on whether it will offer insurance. It may ask whether the local council has completed any remedial work to address the hazard, or whether any specific work has been completed with the property to reduce the impact of the hazard, such as the property being built on piles to elevate it above the anticipated flooding level.

Insurers are also asking questions about whether the property has previously been affected by natural hazard events, such as flooding, earthquakes or landslides/slips.  As above, if it has, an insurer is likely to have follow up questions regarding any remedial work that may have been completed.

Depending on the potential hazards, some insurers may be reluctant to offer insurance cover. If you are considering buying a property that could potentially be impacted by natural hazards, we recommend you confirm you can obtain full replacement insurance before submitting an offer or within the period of your finance condition.

Unconsented works: what can go wrong when selling?

Completing work on your property without obtaining a building consent may seem like a good way to renovate your property without the time delays or cost of your local council involvement. It is, however, likely to lead to significant headaches during your ownership or when you sell your property.

Should you suffer a loss to your property that is caused by non-compliant work, such as installing a wet-area shower without a building consent and the shower room then floods and causes water damage to your property, you may find that your insurer declines your claim. Not only can this mean you will need to fund the cost of repairs yourself, but it can also have implications in obtaining other insurance policies in the future as you will need to disclose that you have previously had a claim denied.

When selling your property, you have an obligation to disclose to buyers any work you have completed but for which you have not obtained the required consent. Additionally, buyers will often review either a Land Information Memorandum or the Property File as part of their due diligence. If the buyer (or their lawyer) notices that there are renovations to the property which required a building consent and it was not obtained, the buyer may not be able to obtain insurance or finance.

Any unconsented works will need to be disclosed to both the insurer and the lender.  Depending on the nature of the work (and the insurer), insurers may decline to cover the property with the unconsented work.

If the buyer can’t obtain full replacement insurance, they will not be able to confirm satisfaction of a finance condition. Even if the buyer can obtain insurance, their lender may not accept the property as security; this means the buyer will be unable to confirm satisfaction of the finance condition.

We recommend you always obtain the required building consent before beginning any building work.

If you have already completed work without a building consent, talk to us about the best way to approach your local council to rectify the issue.

If you aren’t sure whether your next project requires consent, Can I Build It is a good tool which can be used as a guideline; the website can be found here.

New deed of lease documentation

Commercial, Employment, House, Media, News, Property
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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.

Life Stage – Business

Commercial, Media, News, Property, Retirement
0

Sally is not happy with Luke for crashing their brand-new Tesla. The car only appears to need minor repairs but was bought for the purpose of having a ‘safe’ vehicle for their baby on the way. Time is of the essence as Sally’s due date is approaching

 

Luckily for Luke, his father Steve owns a car repair business. He gives his father a call and is told he can bring the car in right away.

 

Steve feels terrible when his son brings in the brand new Tesla, which appears to be falling apart at the front. He takes a closer look and is relieved, it really is only a few repairs which are needed. He often gives discounts to his family but decides he will do this for Luke free of charge, seeing as him and Sally have a baby on the way and are under a lot of stress.

 

He has been under a lot of stress himself with work as the lease has just run out on his car repair yard. He has leased the property for the last 5 years without any issues. He was friends with the owners and would often invite them for drinks and barbecues, and had no concerns that he would be able to lease for another term. When he found out that they had sold the property to new owners, Steve had noticed no difference at first, as the lease was still in effect with the current terms.

 

As the expiry date was approaching, Steve had gone to the new owners and advised he would like to continue the lease for another term of 5 years. The new owners advised Steve that he had no right of renewal and the lease had expired, but they would provide him with a new lease to sign on their terms. Steve received the new lease and read through it, but he did not like the terms as they were fundamentally different to the original lease.

 

This left Steve with the following options, and just as many concerns:

  1. Accept the new terms and sign the lease – Steve had signed the original lease five years ago without properly looking through it, or understanding it. He had been friends with the landlords and hadn’t anticipated them selling. He should have ensured he had options to renew so he would have more security of this property.
  2. Find a new premises – This is not ideal for Steve. His current premises is right in town and only a five-minute drive from home. However, he is aware that he has not even looked at what other opportunities may exist. His business has expanded a lot in the last few years and this could give him an opportunity to find a property with more room and potentially grow his business even more
  3. Negotiate with the new landlords. If they are unable to find other tenants while Steve is able to find more premises, he will have more bargaining power.

 

Steve sighs as he begins fixing the Tesla. He will search online tonight for available commercially leased properties. He vows to take any new lease to his solicitor before signing to avoid future stress.

Macayla Brdanovic

Get in touch today, we’d love to talk.

+64 7 872 0236 [email protected]