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LegalAdviceNZ

Helping a child purchase their first home

Family Law, First Home Buyers, Legal Guidance, Property Law, Relationship Property, Wills & Estates
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When Luke and Yassica’s daughter Mildred decided to purchase a house, Luke and Yassica were keen to support and help her. Then Mildred told Luke and Yassica that she was going to purchase with her partner Jack so that they could combine resources. They were still struggling to be able to afford the sort of house that Luke and Yassica thought they should live in. Luke and Yassica had some savings that they were happy to allow Mildred and Jack to use, so they started thinking about how they could best help Mildred and Jack.

 

After talking to their solicitor, Luke and Yassica proposed to Mildred and Jack that they would provide them with $25,000 towards their purchase. Luke and Yassica’s solicitor would prepare a simple document that would record that the payment of $25,000 would be a loan to Mildred and Jack. Mildred and Jack would not be required to pay any interest, no security would be taken, but they would need to agree that the loan could be called up at any time. This arrangement gave Luke and Yassica the comfort of knowing that they were helping Mildred and Jack to get into a lovely home, but if Mildred and Jack’s relationship ended, Luke and Yassica would be able to call for repayment of the loan, so that the benefit of their hard-earned savings was kept in the family.

Evoto

Workplace Stress: An Employment Issue?

Employee Wellbeing, Employment Law, Human Resources, Legal Guidance, Small Business Advice, Workplace Advice
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It was a busy time at Emilio’s agri business, and Sally noticed that one of his employees, Barry, appeared to be under considerable pressure.

“You should check in with him,” Sally suggested. “If an employee is struggling, you need to take those concerns seriously. Workplace stress can become an employment issue, particularly if an employer is aware that an employee’s health may be affected.”

Employers have obligations to provide a safe and healthy workplace. While they are not expected to diagnose or treat medical conditions, they should not ignore signs that an employee may be struggling.

Where health concerns arise, an employer should listen to the employee, consider whether any support or workplace adjustments may be appropriate, and seek professional advice where necessary.

The key is to address concerns early. Ignoring signs of workplace stress or failing to respond appropriately could create greater problems for both the employee and the employer.

If you are unsure how to handle a situation involving an employee’s health or wellbeing, it is important to seek employment advice before taking action.

When Workplace Conflict Hits

Business Law, Employment Law, Human Resources, Legal Guidance, Small Business Advice, Workplace Regulation
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Lately, Sally had noticed that Emilio seemed a little distant and distracted. She asked him what was troubling him.

“Mi vida, I am so stressed. Work is so busy. We have orders to fill and my sales manager is having an argument with my chief mechanic!”

Emilio explained that his agritech business was in its peak season and orders were pouring in, but this issue meant the sales team and mechanical team could not communicate. That led to serious delays, angry customers and frustrated suppliers.

Sally suggested that Emilio might need some employment advice about New Zealand employment law.

 

Emilio called his lawyer the next morning. He learned that employers had obligations to act in good faith. He did not realise that employers could raise concerns with employees about their performance or workplace conduct, investigate the facts, and make decisions – provided these were decisions a fair and reasonable employer could make in the circumstances.

 

With guidance from his lawyer, Emilio raised the concerns with the sales manager and the chief mechanic. Quickly, the argument cooled off. Emilio met with each of the employees, and asked them for their side of events. He learned that the manager and mechanic were old friends that had different opinions about the best kind of coffee for the tearoom. The manager had asked office staff to get his favourite Kopi Luwak coffee, and had made a cup for the mechanic, telling him it was something different. The mechanic learned about the prank and was extremely upset.

 

Concluding the investigation, Emilio decided that he would give a written warning to the manager about the prank due to the effect it had on the mechanic, and gave a verbal warning to both employees about allowing the argument to affect the workplace. Since Emilio had caught it early and gave the employees plenty of opportunity to participate, they accepted the outcome and made amends, although the mechanic now brings a thermos to work.

 

Emilio went on to have his best sales season yet, meaning he could afford a holiday to Spain to take Sally to visit his abuela.

 

Jadin Hooper

Purchasing a house

Conveyancing, First Home Buyers, Property Law, Relationship Property, Wills & Estates, Young Professionals
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Lukes friend Tom was excited to have found a property he wanted to buy and was preparing to make an offer. Having purchased property before, Luke suggested Tom speak with a lawyer before signing anything and passed on his lawyer’s contact details.

 

When Tom met with the lawyer, he learned about the purchase process and the importance of protecting his assets. Although he intended to buy the property in his sole name, he had not considered the implications of relationship property laws or the need for a Contracting Out Agreement with his girlfriend.

 

Although Tom wanted to make an unconditional offer to appeal to the vendor, his lawyer advised he needed the following conditions:

  1. KiwiSaver Approval Condition: To get KiwiSaver approval, Tom’s lawyer would need to send an application to his provider, who could take 10 to 15 working days to respond.
  2. Finance condition: Tom’s conditional loan approval from his bank was not enough. He needed unconditional approval and time to work through the bank’s conditions.
  3. Builder’s report condition: Although the property looked in good condition at a glance, there could often be structural issues that only a qualified building inspector would identify.

 

The agreement was signed and Tom started working through his conditions. The builder’s report identified some major structural issues in the living room and he ended up negotiating a significant price reduction from the vendor.

 

Tom soon satisfied his conditions, and settlement was complete a few weeks later. He was glad he took the time to work through his due diligence prior to purchasing.

Macayla Brdanovic

To Share and Share alike

Business Law, Contracts and Agreements, Due Diligence, Legal Guidance, Shareholder Agreements
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It was just another Monday, as Simon entered his law office, looking forward to slaking his thirst with a comforting cup of tea. He shrugged off his suit jacket and hung it up. While he waited for his computer to wake itself for the day ahead, he made himself a cup of tea.

 

He was just about to have a sip, when the phone rang. He put the tea down. Reception told him that someone was here to see him, no appointment in place, but it was apparently urgent. Taking a last look at his untouched drink, he went downstairs and shook hands with Reggie, who was flustered, Sally’s cousin.

 

“I’m joining someone in an engineering business, it’s all got to be done by tomorrow for some reason, and I’ve got all this paperwork to sign. In fact, I’ve already signed it and was going to hand it over, but Lory said I better come and see you first. Well, she demanded it.”

 

Simon sat Reggie down in an office, and had a look at the papers provided. Reggie was joining two other people in a company which ran the engineering business, he was going to take over from a current owner, and this all had to happen by 31 March for tax reasons. Simon went back to his room, grabbed his favourite pen, ignored the cold cup of tea on his desk, and returned to an expectant Reggie, who said: “We’re all good to go, aren’t we, can I just pay the money and get on with it?”

 

Simon put down the documents, looked at Reggie, and took a deep breath. “Reggie, there are some really important things to think about first:

 

Due Diligence – how well do you know the people you are going into business with? Do they have experience in the industry, in this company, do they have a good reputation? Are they financially sound, can they help bail the company out of trouble if necessary, have they had money problems in the past?

 

Shareholder Agreement – it is essential that you and the other owners sign an agreement which sets out expectations of each other, whether you will need to put more money into the business, who makes decisions, and when do you all have to agree.

 

You should commit to a timeframe where no one can pull out of the business, and if they do they must offer the shares to each other.”

 

Reggie’s eyes were wide open. “Thanks for this, I’ll have a good chat with the others, I won’t sign anything, and I’ll come back and see you shortly.”

 

Simon waved him goodbye, and poured himself a cup of tea. He knew that was not the end of this story.

 

 

Simon Brdanovic

Rob & Jess Take the Next Step: From Farm Assistants to Sharemilkers

Agribusiness, Employment Law, Legal Guidance, Property & Farming, Rural
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Rob and Jess have been working as farm assistants for Bob for the past 3 years.

Bob is wanting to take a step back from the day-to-day running of the farm and has proposed that Rob and Jess take a big step up and share milk his farm.

This is a dream come true for Rob and Jess but it is also a bit overwhelming – there is so much to think about and organise.

They need to sign a sharemilking contract, buy cows and machinery and hire staff, as well as find a way to pay for everything!

It is all very new to Rob and Jess and they want to make sure that they are setting themselves up properly.

Rob and Jess meet with their lawyer who advised them on the sharemilking contract, drafted a stock purchase agreement and an employment agreement and assisted them with completing their financing with the bank.

This has made Rob and Jess feel much more relaxed and they can get on with their favourite part – farming!

 

Lucy Sim

Considering Retirement Village Living

Estate Planning, Legal Guidance, Property Law, Retirement Planning, Succession Planning
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A few years on from her decision to take out a reverse equity mortgage, and having enjoyed the benefits of releasing some of the capital tied up in her home, Karen is now feeling less confident about living on her own. Many of her old friends have moved away from her neighbourhood, and she is finding that she would like more support close at hand. She has decided to investigate moving into a retirement village.

This option offers several advantages. Karen would no longer need to worry about home maintenance, security, insurance, or rates. She would have ready access to assistance should she suffer a fall or other medical event. And if she feels like company, there would be plenty of like-minded people nearby.

However, Karen has been warned that there can be significant financial implications when selling a home and buying into a retirement village. To fully understand her position, she meets with her solicitor.

Her solicitor explains that most — though not all — retirement villages operate under Occupation Right Agreements (ORAs). Under an ORA, Karen would pay a capital sum in exchange for the right to live in her chosen unit. She would not own the land or building itself, and her right to occupy the unit would be subject to certain terms and conditions.

These conditions often include payment of a regular weekly fee for as long as the unit is occupied. There is also usually a deferred management fee (sometimes called an exit fee), which is deducted from the original capital sum when Karen leaves the village — whether that is because she chooses to move elsewhere or upon her death. In addition, there will be village rules governing what residents can and cannot do within their units and the wider village.

Karen’s solicitor takes the time to carefully explain the legal and financial implications, including how the move may affect the estate she intends to leave to her family. Once Karen fully understands her options, she is in a position to decide whether a move to a retirement village is the right step for her.

 

Mandy Rasmussen

Disputes arising out of a first job

Dispute Resolution, Employment, Employment Law, Legal Guidance, Personal Grievances, Workplace Rights, Youth Law & Guidance
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Sally met up with her sister Samantha and her niece Sarah for coffee at a local café. Sally was excited to see Sarah, as she had recently landed herself her first weekend job working as a waitress in another café in town. Sarah, normally bright and chatty, barely looked up when Sally arrived.

Sally gently asked Sarah how things are going and whether she is enjoying her new job. Sarah quietly answered that she no longer worked at the café. She explained that even though she really enjoyed working at the café, her boss didn’t give her a written employment agreement recording the terms of employment that they agreed on, he never paid her, and he didn’t give her copies of her timesheets when she asked for them. Sarah was too embarrassed to keep asking her boss to give her the documents and to pay her, because he made her feel like she was annoying him and wasting his time. She started feeling really uncomfortable at her job and eventually just stopped going in and she hadn’t heard from her boss since.

Clearly annoyed by Sarah’s work situation, Samantha said that she was going to post about the café and their poor treatment on the local grapevine page.

Sally recalled an article written by Edmonds Judd dealing with defamation and recommended that Samanatha and Sarah rather set up a meeting with her lawyer at Edmonds Judd to get advice on how to resolve the issue.

The team at Edmonds Judd confirmed that Sarah is entitled to all of the basic rights that protect employees, regardless of her age and that this was her first job. Sarah’s boss breached the terms of her employment agreement.

Sarah’s boss was required to:

  • provide her with a written employment agreement;
  • pay her according to the agreement which should provide her hourly wage, frequency of pay and method of pay;
  • keep records in a written form showing for example: time records (including days and hours worked), wage records (including wages paid and how the wages were calculated), and holiday and leave records;
  • record Sarah’s age in his usual wage and time records; and
  • provide Sarah with copies of her employment records if requested.

The team at Edmonds Judd explained to Sarah that given her age and limited time working for her employer, she is entitled to the starting-out minimum wage, but that the parties should have recorded her hourly rate and terms of payment in her employment agreement.

Even though a couple of weeks had passed since she left her employment, she had the right to approach her boss about her dispute. Employees must raise their personal grievance with their employer within 90 days of the issue arising or coming to their attention. If she can’t resolve her dispute with him directly, she is entitled to apply to the Employment Relations Authority for assistance to resolve the dispute.

Her lawyer explained that the first step is to give her boss a written letter setting out what her personal grievance is and how she suggests that the parties resolve it. If communicating with her boss directly does not resolve the matter, then she can apply to the Employment Relations Authority.

Kristin O’Toole

Karen’s Next Chapter: Understanding Reverse Equity Mortgages

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

Buying & Selling Property, Due Diligence, Legal Updates, Property & Conveyancing
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Proposed reform to the Overseas Investment Act – the ability for overseas buyers to purchase or build property in New Zealand

The government recently announced a reform to the Overseas Investment Act 2005 that would allow overseas residents with a New Zealand investor residence visa to buy or build a property to the value of $5 million-plus. Applicants must satisfy the national interest test and pass the risk assessment required by the proposed legislation. After passing its first reading in June, the reform bill is currently before the select committee to receive submissions.

Currently, overseas residents and investors are largely restricted from purchasing or building property in New Zealand.

 

Granny flat legislation just passed

The Building and Construction (Small Stand-alone Dwellings) Amendment Bill was passed into law on 23 October 2025. This law change will allow small stand-alone dwellings or ‘granny flats’ of up to 70m2 to be built without a council building consent provided that certain conditions are met. These changes will roll out in the first quarter of 2026 (1 January to 31 March).

The conditions are:

  • The building must be of a simple design and comply with the Building Code
  • The work must be undertaken or supervised by a licensed building professional, and
  • The local council must be notified before the build begins and at its completion.

It will be interesting to see how this law change plays out and whether any issues arise in the future. There are also penalties for those who do not satisfy the above conditions required by the legislation.

Please do not hesitate to talk with us for advice if you are interested in building a granny flat and you want to ensure you are complying with the new requirements.

 

No further restrictions on sunset clauses in sale and purchase agreements

In our last edition (Winter 2025), we discussed the Property Law (Sunset Clauses) Amendment Bill which was introduced into Parliament in April 2025. The bill was aimed at restricting sellers developing vacant plots of land from using ‘sunset clauses’ to cancel sale and purchase agreements and to add an extra layer of protection for buyers.

To recap, a ‘sunset clause’ is a provision in an agreement enabling the seller or buyer to cancel the agreement if the development is not completed by the specified or intended date. The bill was debated at its first reading in Parliament before being voted down by a majority of 68 to 54.

The majority argued that the passage of the bill would ultimately deter developers from entering into these sale and purchase agreements, and therefore reduce the availability of off-the-plan housing when there is already a shortage of housing in New Zealand.

It was also pointed out that there are already some existing protections afforded to buyers in legislation, specifically in section 225(2b) of the Resource Management Act 1991. This clause enables buyers to give notice to the seller to cancel an agreement if, two years after the granting of a resource consent or one year after the date of the agreement, the seller has not made reasonable progress in obtaining or depositing a survey plan.

 

Changes to the assessment of earthquake-prone buildings

The government recently announced its intention to introduce the Building (Earthquake-prone Building System Reform) Amendment Bill into Parliament soon. The proposed reform focuses on increasing the threshold and implementing strict criteria that must be met to condemn a building as earthquake-prone and uninhabitable.

The proposed new regime will only capture buildings that pose a genuine risk to human life in medium to high-risk zones. Consequently, the government believes that around 55% of earthquake-prone buildings (about 2,900 buildings) will be removed from the system.

We look forward to reading the draft bill once it is introduced into Parliament; it has implications for many building owners.

 

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

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