PHOTO: Bindi Norwell – REINZ
As the real estate profession counts down the final hours towards the Alert Level 4 Update, REINZ has issued the following information to the real estate profession.
Please note: this is not legal advice, but provides a recommended approach in certain situations. Additionally, this information may change in light of further Government updates over the coming hours/days.
All comments are attributable to Bindi Norwell, Chief Executive at the Real Estate Institute of New Zealand (REINZ)
Information is as follows:
Real Estate Sales
Settlements: Our understanding is that whilst in lockdown, vendors and purchasers will not be able to move in and out of their houses. The Auckland District Law Society and the New Zealand Law Society is recommending that the vast majority of settlements may need to be deferred until after the Alert Level 4 restriction is lifted. The party’s lawyers will make appropriate amendments to the contract to facilitate this in existing agreements.
NZLS Property Law Section has suggested the following clause could be inserted into new agreements that are drafted over the lockdown period (please note, this clause may change and we will keep members updated as we receive information): “The parties agree that settlement is hereby deferred to the 10th working day after the Government reduces the COVID-19 Level to Level 2 or below, or to such other date as may be mutually agreed. For the sake of clarity neither party shall have any claim against the other in relation to this deferral.”
Moving if a property settles during lockdown: Travel will be restricted to essential travel only e.g. pharmacy/supermarket trip, so settlements and moving house should be deferred until after the Alert Level 4 restriction is lifted. The parties lawyers will make appropriate amendments to the contract to facilitate this
Licencing: Following conversations with the REA over the past few weeks, they have issued the following guidance for licensees – The REA has extended the licence renewal period by 3 months for licences due for renewal in March, April or May. The extension means that if your licence is due to be renewed by 31 March, you can have until the end of June to renew it. If your licence is due for renewal by the end of April or May, you have until the end of July or August respectively. If you would like to suspend your licence for a while, you can do so without paying a fee. The REA will waive the usual $145 fee until 31 June.
Click here for more information.
Property Management
The Ministry of Housing and Urban Development and Tenancy Services have made the following announcements this afternoon:
· There is now a freeze on rent increases
· A rent-increase notice from a landlord will not have the effect of increasing a tenant’s rent, unless the rent increase has already taken effect
· Tenancies will not be terminated during the lock-down period, unless the parties agree, or in limited circumstances, regardless of when notice was provided
· Tenants will still be able to terminate their tenancy as normal, if they wish
· Tenants will have the ability to revoke termination notices that they have already given, in case they need to stay in the tenancy during the lock-down period
Period of the measures
· The measures take effect by Thursday, 26 March
· The rent freeze applies for an initial period of six months
· The protections against terminations will apply for an initial period of three months
· At the end of both initial periods, the Government will evaluate whether they need to be extended.
Click here for more information
Click here for the Tenancy Tribunal update
Tenancy Tribunal Update
– From Wednesday 5 March (inclusive) many regions have already received notice that all hearings will be vacated for the [lockdown period] until further notice. All parties who have hearings scheduled during this time will be advised of new hearing dates, once services are open and operating again.
– From today onwards, MBIE will be processing adjournments before they are handed over to the Registry
Marketing Materials
We recommend you check your marketing material to ensure you will not be conducting face-to-face viewings over the lockdown period.
ENDS