What's new in legislation?

Overseas investment – new Designation and Delegation Letter

A new Designation and Delegation Letter was issued on 12 December 2007 that may help streamline the application process for overseas investment.

It delegates wider powers and more scope to grant consents to the Overseas Investment Office in relation to decisions involving land. The delegation of matters involving overseas investment in significant business assets remains the same. The new delegation will hopefully make the application process more efficient as fewer applications will need to go to the Ministers for consideration.

Real Estate Agents Bill

The Real Estate Agents bill will replace the Real Estate Agents Act 1976. The bill proposes putting an end to self regulation of the industry by abolishing the Real Estate Agents Licensing Board and creating a Real Estate Agents Authority, independent of the industry, to oversee licensing, complaints, disciplinary and enforcement processes.

The bill creates a Disciplinary Tribunal (to deal with serious cases) which will have the ability to order the cancellation of licences and award compensation. It also establishes a public register of real estate agents and sales people that records any breaches of the industry standards against the names of those involved, as well as introducing a fit and proper person test for people entering the industry.

The Justice and Electoral Select Committee have recently heard a number of submissions on the bill. Particular areas of concern for the Committee include the discrepancy between New Zealand and Australian qualification standards, the inclusion of the property management sector, funding for the new scheme and the inadequacy of the bill's transitional arrangement: the bill is set to come into force the day after it receives Royal Assent, yet there will be no time to get the machinery of the new regime in place. The Committee has undertaken to investigate some of the concerns raised further, with a report due back on 10 June 2008.

Affordable housing: Enabling Territorial Authorities Bill

The bill enables territorial authorities to assess the level of affordable housing in their districts. Following its assessment, a territorial authority may, if it wishes to, develop an affordable housing policy and implement that policy. The bill provides for full public participation in the development of affordable housing policies, including rights of objection and appeal.

Before a territorial authority can implement an affordable housing policy, it must (among other things):

• undertake a housing needs assessment that identifies the level and type of need in its district;

• develop, in consultation with its community:

• an affordable housing policy that sets out the outcomes and objectives that a territorial authority wants to achieve via its affordable housing policy;

• the criteria for determining developments to which the affordable housing policy will apply; and

• what actions a developer may be required to do to facilitate the provision of affordable housing.

The bill also addresses the use of restrictive covenants whose principal purpose is to stop the provision of affordable housing or social housing, such as housing for people on low incomes or housing for people who need supported accommodation. The bill would prevent the imposition of such covenants from the date the bill comes into force, but would not affect existing covenants.

Land Transfer Amendment Regulations 2008

These regulations, which came into force on 31 March 2008, amend the Land Transfer Regulations 2002 to implement Landonline release 3.0 of the programme expansion of electronic lodgements.

The ultimate aim of the expansion is to apply electronic lodgement to all instruments that may be lodged by conveyancers.

From the Department of Housing and Building

Consultation on the Fencing of Swimming Pools Act 1987

The Department of Building and Housing is currently reviewing the Fencing of Swimming Pools Act 1987 to ensure it is operating as effectively as possible. The first round of consultation runs to 30 June 2008, and seeks feedback on issues that have been raised by stakeholders.

A copy of the discussion document can be downloaded from: www.dbh.govt.nz/fospa-consultation with responses to comments@dbh.govt.nz

Building (Infringement Offences, Fees and Forms) Regulations 2007

These were enacted on 17 December 2007 but do not come into force until 1 July 2008.

They specify the offences under the Building Act 2004 which may be dealt with as infringement offences. The regulations also prescribe forms for infringement notices and infringement reminder notices.

The Property Law (Mortgagees' Sales Forms and Fees) Regulations 2007

These regulations came into force on 1 January 2008 and are made under the Property Law Act 2007. They prescribe forms and fees relating to mortgagees' sales.

Updates on previously noted legislation

Building Amendment Bill

The Building Amendment Bill 2007 received Royal Assent on 14th March 2008 is now the Building Amendment Act 2008 (the Act).

Those sections of the Act relating to applications for restricted building work, and the requirement that the restricted building work must be carried out or supervised by a licensed building practitioner, will now apply as from 30 November 2010 (previously 2009).

The Act also requires project information memoranda to include a reminder about access provisions for disabled persons.

Enquiries and information

For more information on any of the cases, articles and features in Property Update, please email Jane Holland or call on 64 9 916 8983.