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  1. #11
    Join Date
    Jun 2004
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    10,479

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    Regarding the Deed of Lease - is it legally binding to just take the ADLS document, fill it out and get it signed? Does it need a lawyer on my part? The tenant will probably get their lawyer involved and if they made changes I would probably have to get my lawyer to check but what else would the lawyer do? Does the Deed need to be registered somewhere? Am I missing something - it all seems black and white to me.

    The reason I am still thinking about the Deed is because the Agreement to Lease doesn't have anything re reinstatement etc.

  2. #12
    Join Date
    Dec 2010
    Location
    Cambridge, NZ
    Posts
    1,375

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    It's not easy Davo. I generally search them (and, if known, their partners) on the LINZ register and companies office, do a credit check. If they have property in their own name then you're generally going to get something, but even then they can be mortgaged to the eyeballs. If they have nothing, you are often wasting your time.

    Sometimes you can only suspect, not know, and need a judgment plus Order of Examination to get them under oath about what they do or don't have.

  3. #13
    Join Date
    Dec 2010
    Location
    Cambridge, NZ
    Posts
    1,375

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    Quote Originally Posted by Wayne View Post
    Regarding the Deed of Lease - is it legally binding to just take the ADLS document, fill it out and get it signed?
    Yes.

    Does it need a lawyer on my part?
    No.

    The tenant will probably get their lawyer involved and if they made changes I would probably have to get my lawyer to check but what else would the lawyer do?
    Just as you say run their eye over the Deed of lease and the proposed changes and make sure they're done properly. Hopefully they have some commercial nous and can talk through practical effects of changes and things that you personally might wish to change.

    Does the Deed need to be registered somewhere?
    No, unless we are talking creating a leasehold title or a cross-lease.

    Am I missing something - it all seems black and white to me.

    The reason I am still thinking about the Deed is because the Agreement to Lease doesn't have anything re reinstatement etc.
    Odds are your agreement to lease will incorporate the terms of the Deed of Lease by reference but, if it doesn't, you definitely need the broader provisions of the Deed of Lease.

  4. #14
    Join Date
    Aug 2010
    Posts
    100

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    If it's quite a substantial property with quite a sum of rent (like say $40k or more) then I'd definitely have a Deed of Lease. I usually get my solicitors to prepare these and split the cost (around $800 these days, which is ridiculous, it's a 1/2 hour job) with the tenant.

    But if it's a smaller unit then the Agreement to lease will be fine.

    Nice tip from Davo----a question in my case the rent is well below that figure for an upstairs office and tenant is on a 1 X 1 X 1 x 1--its not really worth it for them to have a yearly Deed of Lease --they are on the Agreement to lease that the agent did for us --now that the first year is over in a week or so where can i download the "agreement to lease form" (anyone have a link or pdf they can send me?) or can you reuse the original and simply change the dates?
    thanks
    Last edited by d2ba; 21-06-2013 at 09:05 AM.

  5. #15
    Join Date
    Dec 2010
    Location
    Cambridge, NZ
    Posts
    1,375

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    You can't download a free copy, unless someone has typed it out or pirated an illegal copy somewhere....they get produced by the Auckland branch of the NZ Law Society. You can buy some hard copies here:

    http://www.adls.org.nz/adlsi-store/l...-edition-2012/

    You need proprietary software to type information into them and print them out...it keeps track of how many forms you have left and you have to order more etc etc, plus the software itself is expensive, so not worth it for the casual user.

    If you don't wish to pay for one, you could as you suggest probably re-use the original by photcopying it and whiting over the old dates etc, at your own risk.

  6. #16
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,377

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    d2ba, you don't need a new one if it's just a renewal. Just do it by letter.

    It just covers the fact that it's going to be renewed for another year, state rental figure etc.
    Squadly dinky do!

  7. #17
    Join Date
    Aug 2010
    Posts
    100

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    Thanks Davo are you sure its just a it's just a renewal. Just do it by letter.? in my case its just a 1 x 1 x 1 x 1 into its second year
    What about insurance and income protection --without a full deed of lease or current agreement to lease --insurance company may not accept a formal letter that you have leased for another 12 months?
    if your building has a disaster !!!!!

    Quote....A typical leasing scenario is as follows:
    The landlord has an empty space and instructs an agent to find a tenant. The tenant sees the agent'sadvertising, inspects the premises and negotiates on what appears to be the most important aspect theannual rental. This is agreed between the landlord and tenant, at which stage, the agent produces a twopage agreement to which both parties give a cursory glance and then sign.
    The first stage at which problems appear is when the landlord decides that the arrangement needs to beformally documented and instructs its lawyer to prepare a formal deed of lease. The result is a 20 plus pagedocument, delivered to the tenant for signing. At this stage, a tenant usually decides that they do notunderstand most of the document and had better seek legal advice.
    The tenant's lawyer then points out a few innocent looking sentences in the signed agreement which statethat the parties agree to enter into a deed of lease in the Auckland District Law Society (ADLS) 4 th editionform, or on the landlord's standard form. A tenant, when signing the agreement, will not usually know whatterms are included in an ADLS or landlord standard form.
    The result is that, by signing an agreement containing the above sentence, the tenant is bound to accept 40plus clauses in the deed of lease. This includes extensive maintenance and repair obligations that thetenant either did not think about or assumed was the landlord's responsibility. Under the ADLS 4 th editionform, the tenant is obliged to repaint and redecorate when reasonably necessary, regardless of the state ofthe premises at commencement of the lease or of fair wear and tear. In addition there are variousoutgoings which the tenant has to pay for.
    The tenant is also obliged to pay the landlord's solicitor's costs of preparing the deed of lease. These canrange from $450 upwards to $1,500, plus GST, depending on the complexity of the lease.

    Last edited by d2ba; 24-06-2013 at 01:48 PM.

  8. #18
    Join Date
    Dec 2010
    Location
    Cambridge, NZ
    Posts
    1,375

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    Davo made a good point...it certainly does sound like you have a renewal, not a need for a new lease. However the renewal clauses are generally in the deed of lease, not the agreement. It does leave the situation a little ambiguous if you renew under the Agreement without executing the Deed. I'll refrain from going into complex questions of part peformance and implied terms.

    While it's not much money and it's a short term, if you want to be safe you should really document it, and chances are your agreement provides for the tenant to pay anyway.


 

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