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Local Authority Property Association

Legislative Update 2014

Phillip Merfield and Donna Hurley

5 November 2014

www.simpsongrierson.comIntroduction

Outline of legislative changes affecting property:

– Local Government Act 2002

– Statutes Amendment Bill (No 4)

– Real Estate Agents Act 2008

– Fair Trading Act 1986

Proposed legislative changes to Valuers Act 1948

www.simpsongrierson.comLGA 02 Amendment Act 2014

• came into effect on 8 August 2014

• key changes concerning decision-making:

– significance and engagement policy

– assess advantages and disadvantages of options

– more flexibility for special consultative procedure

– requirements to consult in accordance with, or in a manner that gives effect to, section 82

– changes to consultation for long-term plans and annual plans

www.simpsongrierson.comLGA 02 Amendment Act 2014

• Other important changes

– Development contributions

– Delivery of services review

– Local boards

– Infrastructure strategy

– Electronic meeting attendance

www.simpsongrierson.comStatutes Amendment Bill No 4

• Changes affecting local authorities

– Local Government Act 1974 (temporary road stopping)

– Local Government Act 2002 (presumption regarding alcohol in alcohol ban areas)

– Local Government Official Information and Meetings Act 1987 (substantive amendments)

– Ombudsmen Act 1975 (grounds to refuse to investigate)

– Reserves Act 1977 (transfer of reserves to Crown and removal of outdated limitations)

– Sale and Supply of Alcohol Act 2012 (various “tweaks”)

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Real Estate Agents Act and Fair Trading Act

How will these affect you?

• The Real Estate Agents Act 2008

• Are you are real estate agent?

• You are if you do “real estate agency work”.

• “Real estate agency work” is any work done or services provided:

- in trade

- on behalf of another person

www.simpsongrierson.comReal Estate Agents Act

- for the purposes of bringing about a transaction

• “Transaction” is:

- Sale, purchase or other disposal or acquisition of a freehold estate or interest in land

- Grant, sale, purchase or other disposal or acquisition of a leasehold estate or interest in land (but not residential tenancies)

- Also registered licences, occupation rights

www.simpsongrierson.comReal Estate Agents Act

businesses (either with or without any interest in land)

• Exclusions from “transactions”:

- general advice to assist owners to locate and negotiate with potential buyers

- publishing advertisements

- lending money

- Investment advice

- providing conveyancing services

www.simpsongrierson.comFair Trading Act 1986

• Major changes from 17 June 2014:

• Unsubstantiated representations

- Section 12A to 12D

• You can’t in trade make an unsubstantiated representation

• A representation is unsubstantiated if you have no reasonable grounds for making it at the time it was made, irrespective of whether it was false or misleading

www.simpsongrierson.comFair Trading Act 1986

• A representation is a claim (express or implied) made in respect of goods, services or an interest in land

• You can’t contract out of this provision – section 5C

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Proposed changes Valuers Act 1948

• Reform of valuation profession

• LINZ discussion paper

• Why is reform needed?

• Objectives of reform

www.simpsongrierson.comQuestions