North Harbour Law

Contracting with Young People - The Minors Contract Act 1969

Thu, 15 May 2008 00:00:00 +1200

“Our aim is to have you in better financial shape after you borrow from us – not poorer”. This statement appears on the website of Wine Country Credit Union (WCCU). It was certainly relevant in the case of two young people, R and T. According to the presiding Judge, during May 2003 R saw a car he liked and he “just had to have that car.” So R and T borrowed $15,612 from WCCU, and they bought the car. However, within weeks R was apprehended whilst driving without a licence and the Police impounded the car. It was subsequently repossessed by WCCU and resold, leaving a balance owing of $12,000.

As a result WCCU sued R and T for the balance. However, a District Court Judge held that R and T did not have to pay any of the $12,000. WCCU appealed, but the High ...

Source: Contracting with Young People - The Minors Contract Act 1969

Are You in a De Facto Relationship?

Thu, 15 May 2008 00:00:00 +1200

The inclusion of de facto relationships, (which encompasses same sex relationships) within the Property (Relationships) Act 1976 (“the Act”) effectively means de facto couples will receive similar treatment, concerning disputes about property, to those who are married.

De facto relationships and the Act

De facto relationships will ordinarily be covered by the Act only if the partners have lived together as a couple for three or more years. After three years, the principle of equal sharing applies.

There are exceptions to the three year rule. These include situations where there is a child of the de facto relationship or where one party has made a “substantial contribution” to the de facto relationship. Before it makes an order, when considering exc ...

Source: Are You in a De Facto Relationship?

Nothing Succeeds Like Succession Planning

Sat, 01 Jul 2006 00:00:00 +1200

So you are bullet proof. You are a self-made man or woman and your business is flourishing. You put in the many necessary hours to build your business and may have family involved to assist you. You have used your own skills and expertise to be a leader in your field of endeavour. You control your own destiny – or so you think...

Thinking Ahead

Consider where you wish to be in the next ten to twenty years. For example, when do you want to retire? Will you be able to realise sufficient capital from your business to generate an income, which will in turn enable you to spend the later years of your life doing the things you were not able to whilst running your business? Succession planning is all about addressing these issues and putting things in place to a ...

Source: Nothing Succeeds Like Succession Planning

Are You At Risk From House Finance Fraud?

Fri, 30 Jun 2006 00:00:00 +1200

A house finance fraud is one which involves the provision of false or misleading information to a homeowner, bank or other lending institution for financial gain. These frauds appear to be on the rise in New Zealand and they are becoming increasingly elaborate.

Who Is At Risk?

Those at risk include the following:

Individuals who wish to own their own home, but either do not have enough money for a deposit or have a poor credit history and therefore find it difficult to obtain a loan;
Homeowners struggling with mortgage repayments and other debts;
Purchasers of investment properties or parents wishing to assist family members to purchase a home;
Banks and other lending institutions.

...

Source: Are You At Risk From House Finance Fraud?

Body Corporates: What Are They And How Do They Work?

Wed, 14 Jun 2006 00:00:00 +1200

Developments involving unit titles are becoming increasingly popular as more and more people elect to live in apartments or town house developments, particularly those located in inner-city areas. These developments can take the form of clusters of town houses, terraced housing or low and high rise apartment blocks. A body corporate is made up of all of the owners in a unit title development.

Unit Titles Act

Body corporates are governed by the provisions of the Unit Titles Act 1972. The Act allows for the subdivision of land into units so that each unit is owned by an individual owner and common property is owned jointly by all of the owners.

The Act sets out rules for the use and management of both the Units and the common ...

Source: Body Corporates: What Are They And How Do They Work?

Explaining Powers Of Attorney

Wed, 10 May 2006 00:00:00 +1200

Any individual may give another a power of attorney to manage his or her affairs pursuant to the Personal Protection of Property Rights Act 1988 (“the Act”).

The Act provides for two types of powers of attorney:

1. An Enduring Power Of Attorney As To Property

This confers upon the person who is appointed (“the donee”) the right to act in respect of all the property affairs of the person he or she is appointed by (“the donor”). Alternatively, it can be restricted to certain types of property. For example, a person who is intending to be absent from the country may wish to appoint an attorney to negotiate the sale of a specific asset such as a house or company shares and the power of attorney would therefore be restr ...
Source: Explaining Powers Of Attorney