Our commercial team is experienced in all manner of commercial leases, including retail outlets, office space, helicopters to hotels, gravel pits and farms.  We have experience acting for both tenants and landlords and can assist in the preparation and negotiation of the following:

• Agreements to lease spaces yet to be constructed and fitted out

• Drafting of new lease terms and lease variations

• Lease renewals

• Lease rent reviews

• Sub-leases agreements

• Assignments and surrenders of leases

It is important that the terms for security in leases are recorded accurately and apply appropriately to the circumstances of each lease. Personal guarantees, bank guarantees, cash bonds and other collateral security can all be provided but must be adequately and appropriately recorded in the lease terms between the parties. 

We can advise you on all aspects of your leases and provide guidance as to the terms contained within them.

Our commercial team can provide you with advice and guidance in respect of your commercial contracts by preparing these documents and negotiating the terms for the same. Our team can put the commercial gobbledygook into plain English to ensure that you can understand your commercial contract terms. Our team can provide you guidance in respect of the following:

• Terms of trade

• Shareholder agreements

• Partnership agreements

• Joint venture agreements

• Supply contracts

• Distribution agreements

• Licensing agreements

• Employment contracts

• Restraints of trade

• Confidentiality agreements

• Construction contracts

Whether purchasing a family home or providing the capital required for a business to “keep the lights on”, other than for a lucky few, most individuals and businesses will need to borrow money to help them to do so. 

Whilst finance is most commonly sourced from the main retail banks, our commercial team also has significant experience in dealing with second-tier lenders and documenting private finance arrangements.  

Come and talk to us about:

• loans, mortgages, and personal property securities

• refinancing (”changing banks”) and debt consolidation

• consumer banking law

• security advice and enforcement

• debt recovery

What you need to know and do about changes to your home insurance

For most homeowners in New Zealand, home insurance has always been an unspecified ‘replacement’ cost based on the floor area of their home. Following the Christchurch earthquakes, insurers are now adopting a new home insurance policy whereby all home insurance policies will be based on an ‘insured sum’.

The result is that the onus is now on you to get your home valued correctly as the specified insured sum will be the maximum amount the insurers will cover in the event of a claim.

The Insurance Council of New Zealand and the majority of insurance companies have published information online, and provided fact sheets and valuation calculators to inform homeowners and assist with calculating the insured sum.

In order to determine the sum to be insured, you must determine the cost of completely rebuilding your home. It is paramount that you are aware of the unique features of your home. These include:

• structural features (floor area, number and types of rooms and levels, the style and standard of construction of the home, the material used to build the home)

• exterior structures associated with the home (decking, paving, driveway, garage)

• recreational features (swimming pools, spa pools, tennis courts)

• the slope of the land the home is built on and whether there are retaining walls

• additional special features near the home (bridges, dams, private wharfs)

• The insured sum does not include the value of the land on which your home is situated, or what it would cost to buy your home. Therefore the purchase price, rates valuation, or other estimate cannot be relied upon to determine the home’s value or insured sum.

In addition to calculating the value of the sum insured, each year you must also determine the adequacy of the sum insured and keep your insurers updated upon renewal of your insurance policy. This is critical if you complete renovations or changes to your home to guarantee that those works (and the possible increase in value) are covered by your insurance policy.

This is a significant change to the duties of the insurer, and shifts the onus on you to correctly value your home and the insured sum. You need to be proactive, as many insurers have already transitioned all new home insurance policies to the ‘sum insured’ base, and all existing policies are likely to change at the time of renewal. One of the main consequences if you fail to adhere to the new policy, is that a default sum for your home will be calculated by the insurers which may not reflect its true value or the costs likely to be incurred in replacing the home. It could mean you are either under insured, or paying too high a premium if the insurers estimate is too high.

For most people their home is their most valuable possession.

You need to be aware of the terms of your insurance policy, and be proactive in contacting your insurer to ensure your home is adequately protected. If you have any queries regarding your home insurance policy you should contact your insurer immediately. If you have any issues regarding insurance claims, it is prudent to obtain legal advice.

No matter the size and nature of your business, you will almost certainly have thought of original ideas that enable you to undertake your business activities more efficiently, distinctively and successfully.  Such ideas, which can include, brands, products, processes and designs, are commonly referred to as your “intellectual property”.  It is more important than ever to protect your original ideas, given the increasingly competitive and interconnected global marketplace.  Our team can help you to protect your ideas and their value to your business.  Come and talk to us about:

• what constitutes intellectual property, including copyright, trademarks and designs

• ownership of intellectual property

• the process for protecting your ideas

• options for commercialising your ideas, including licensing, franchising and the sale of intellectual property ownership rights

• how to deal with disputes 

• how to enforce your intellectual property rights in the event of infringement (including “passing off” and Fair Trading Act issues)

Read about the copyright amendment act and how it affects your business 

We provide comprehensive expert property development advice. We are entrusted to act for numerous clients in this sphere. Our clients range from well-established to emerging developers. They instruct us because of our experienced team who meet their specific requirements.

Our firm’s complementary expertise in resource management and commercial law provides additional reassurance and convenience to our clients.

We work nationwide across all sectors including rural, residential, commercial, retail and industrial.

Examples of recent work include:

• Undertaking many subdivisions:

  • Rural blocks in Cromwell

  • Subdivisions within Jacks Point (Queenstown)

  • Large residential property developments in Christchurch creating hundreds of titles, in several stages

  • Assisting joint venture partners with industrial subdivisions

• Acting for large build companies

• Preparing Agreements for Sale and Purchase for off-the-plans title sales

• Preparing easements and covenants to suit developer needs

When buying a business in New Zealand, there are several legal considerations that prospective buyers should be aware of to ensure a successful transaction. Some of the key aspects include:

Business structure: Understand the existing business structure, such as sole proprietorship, partnership, or limited liability company (LLC), as this will impact legal responsibilities, tax obligations, and ownership transfer.

Sale and purchase agreement: This legally binding document outlines the terms and conditions of the business sale, including the purchase price, payment structure, and any warranties or indemnities. Both parties must sign the agreement, and it is advisable to have a legal expert review it before signing.

Due diligence: Conduct a comprehensive due diligence investigation to assess the business's financial position, legal compliance, assets, and liabilities. This process may involve reviewing financial statements, contracts, leases, employment agreements, intellectual property, and compliance with applicable laws and regulations.

Asset vs. share purchase: Determine whether you are buying the business's assets or shares. An asset purchase involves acquiring specific assets and liabilities, while a share purchase involves buying the entire company, including its assets, liabilities, and legal obligations. Each option has different legal and tax implications, so consult with legal and financial advisors before making a decision.

Regulatory compliance: Ensure that the business complies with all applicable laws and regulations, such as health and safety, employment, privacy, and industry-specific regulations. Obtain necessary licenses and permits, and transfer them to the new owner as required.

Employment considerations: If the business has employees, be aware of your obligations under New Zealand employment law. This may include honouring existing employment contracts, maintaining accurate employee records, and ensuring compliance with minimum wage and leave entitlements.

Tax considerations: Consult with a tax advisor to understand the tax implications of the business acquisition, including Goods and Services Tax (GST), income tax, and any potential tax liabilities arising from the transaction.

Foreign ownership: Foreign investors may face restrictions on certain business acquisitions, depending on the industry sector and transaction value. The Overseas Investment Office (OIO) may need to approve the acquisition if it involves significant assets or sensitive land.

Post-acquisition integration: After the transaction is complete, consider any legal aspects of integrating the acquired business into your existing operations, such as updating contracts, merging entities, and ensuring continued compliance with all applicable laws and regulations.

By understanding and addressing these legal considerations, prospective buyers can navigate the process of buying a business in New Zealand more effectively and minimize potential risks. Speak to Mactodd today to find out how we can help you navigate through the purchase of a business.

Robust due diligence is crucial in order to achieve the best outcome for your commercial or residential acquisition. Our specialist commercial and property team specialises in advising large and small commercial and property investors and buyers.

We review and advise on property titles; lease agreements; licenses and consents; property encumbrances and covenants; zoning and land use; financial reports; tax implications (though not tax advice); regulatory compliance; intellectual property; and employment considerations amongst other things. This entails a meticulous examination of legal, financial, and operational aspects of your proposed transaction. Adept due diligence not only mitigates risks but also enhances informed decision-making for all stakeholders involved. 

Our commercial and property team are on top of the latest legal and case law developments in this space, including but not limited to rights and obligations under the following laws and their associated regulations:

• Resource Management Act 1991

• Land Transfer Act 2017

• Companies Act 1993

• Fair Trading Act 1986

• Contract and Commercial Law Act 2017

• Financial Reporting Act 2013

• Property Law Act 2007

• Intellectual Property Act 2014

Where applicable, our familiarity with local government plans, regulations and bylaws is also an essential part of the advice we provide.

We work through all steps of the buying process to uncover potential risks, and challenges and advise you in relation to your commercial and lifestyle objectives before you commit.