Covid-19 rules on ending tenancies Written by Louise Maginness – Registered Legal Executive (Residential Property) Under the Covid-19 Response (Urgent Management Measures) Amendment Act on 23 March the government announced a freeze on rental increases and restrictions on ending a tenancy. The new rules were put in place to offer greater protection for tenants against having their tenancies terminated during the pandemic. What are the new rules? Landlords can't increase rental for their properties until at least 25 September 2020 (unless the period is extended). If a rent increase was negotiated or served prior to 26 March 2020, but it did not come into effect until after that date, then that increase is of no effect and there is no rental increase. If a landlord attempts to increase the rental during the rent-freeze period they may be liable for damages up to $6,500.00. The new rules also allow residential tenants to remain in houses, even if their leases were due to be terminated. The earliest date they can be served notice is 26 June 2020, and after that date tenants can stay in the property for a minimum of 42 days (if the property is sold), or a further 90 days. The government has announced that the tenancy terminations are not being extended beyond 25 June and that the usual termination rules will reapply from 26 June 2020. Drafting an agreement for a currently tenanted property where the tenancy needs to be terminated If you need to draft an agreement for selling a currently rented property where the house is to be vacant at settlement, you need to be very careful to provide for the valid termination of the tenancy and the correct timeframes to do so. At this time, it is encouraged that landlords and tenants to work together and try to come to an arrangement that suits everyone. If you have any questions about the rental freeze and termination period, our team of experienced property lawyers are ready to assist. New building consent exemptions have been approved by Government Written by Courtney McHugh - Registered Legal Executive (Property) In order to assist the country’s recovery from the Covid-19 Pandemic, the Government has announced that building consents will no longer be required for certain low-risk building work, saving home owners time and money. The erection of structures such as sleep-outs, sheds and carports will no longer require a building consent. The package the Government is introducing provides 6 new exemptions to the Building Act and expands four of the current exemptions. They cover a variety of work carried in both urban and rural areas. The exemptions include building work such as:
This work will still need to comply with the Building Code and other relevant legislation (such as the Resource Management Act). While DIYers may relish these changes they will need to be clear on what work can be done by anyone, and what work needs the involvement of professionals. For more substantial work (e.g. where plumbing and electrical work is required), this will need to be managed by a Licensed Building Practitioner (LBP) or Chartered Professional Engineer (CPE), and information on how this is to be managed is still being worked through. When will these changes commence? Most of the new exemptions are expected to commence at the end of August. The new exemptions for LPBs are expected to commence a bit later, at the end of the year, once changes to the Building Act are made. The changes will be included in the Building (Building Products and methods, Modular Components and Other Matters) Amendment Bill 2020. This bill was introduced into Parliament on 8 May and will include other changes that aim to make process for work that will still require a consent more efficient. This bill has passed the First Reading and is now with the Select Committee. Work that requires involvement of a LBP or CPE Information on how this work is to be managed and recorded is scant at this stage. The LPB will be responsible for ensuring that the building work itself complies with the building code. They will need to carry out or supervise both design and construction and will be responsible for ensuring that all building products and methods used comply with the Building Code. MBIE will issue new guidance before the new exemptions commence. As always, it will be the home/building owner’s responsibility to check whether a building consent is required. Work done under an exemption will not show up on the Council’s LIM report. In the future, it will be important for homeowners to keep clear records and sign offs of work done under an exemption so they can pass these records on to agents and prospective purchasers when selling their homes. We will keep you updated as more information comes to hand, and as always, if you would like further information, please feel free to contact our property team. Courtney McHugh - Registered Legal Executive Courtney thrives in a fast paced environment and when it comes to buying and selling property (conveyancing), Courtney ensures her clients are supported and guided throughout the entire process. She prides herself on her communication and organisational skills which lead her to provide great outcomes for her clients. Louise Maginness - Registered Legal Executive Louise is passionate about developing and maintaining a strong and friendly working relationship with her clients. Your home is often your biggest asset and Louise enjoys ensuring that her clients understand the procedure to make the process run smoothly and to achieve the best outcome for them. |