Cross lease title, trouble with neighbour, suggestion needed!!!

[Jonovben]

Hi guys, my property is under crosslease title, and recently been stuck in trouble with neighbour. The neighbour has completed a lot of structural alterations and additions. However, I was not been any notification or any plan for that.
I am kind of very upset and angry now, as I have been given a lawyer letter from neighbour, asking me to sign on the council aggrement on those change, and surrender of my current memorandum of lease. Otherwise the neighbour threat he will request arbitration.
1. What can I do? Do I need a laywer?
2. Who should pay for the lawyer fee?
3. Can I request compensation ?

[John the builder]

yes
yes
yes
]you can use the tenancy tribunal?

[Jonovben]

do i have to agree, even if all the alterations can pass concil audit? Mate, I am quite pissed off here, by what neighbour has done to me.

[John the builder]

x lease agreement likely say they need your permision to do work but also that that permission cant be reasonably withheld what does your lease say?

Why are you pissed off

has the work affected you?

[Damap]

You can take them to arbitration, costs you 3 grand. But unless you have some good reason to be unhappy you'll lose. Most common issues worth pursuing are additions. IF they have increased site coverage and potentially limited yours over theirs then you'd have a case for example.

[Son of G]

Here is my advice:
If the neighbour is planning to sell, and you are holding for the long term, sign nothing.

If you are OK with the final outcome of the alterations only sing an agreement that confirms that they will, at their cost ,update the site plan on the title, get full resource & building consents, and pay for your legal costs.

I have had a similar experience.
I have a rental at the back end of a block of sausage flats where the front flat changed the emergency egress route so they could create some private yard space and add a car port.
When a real-estate agent asked me to sign that I was happy with the outcome, I refused. I was happy with the physical works but the paper work had not been completed. In that case the sale went through but the new owner is very clear what they need to do to to ensure the title is not defective when they come to sell in a few years time.

[ivanp]

Most probably your neighbour's additions have increased site coverage. Because the title is cross-lease, site coverage is calculated for the whole site (i.e. yours and your neighbour's parts together), therefore his additions reduced potential for development (such as additions) on your part. So, his gain is clearly your loss.

So, to start with:
* don't sign anything,
* don't agree with anything even verbally (because verbal agreement has or may have force of written contract)

After that I would follow excellent advice of Son of G above.

That's just my 2 cents. I own two cross-lease properties and know the implications.

[klauster]

Cross-lease = shared ownership

The question is why would you be upset when your neighbor adds value to a shared property?

Are you upset because of the violation of the lease agreement, or does the alteration affect you negatively.

If not, you have a legal binding lease agreement and you need to do or sign anything.

[Damap]

The bottom line however is consent cannot be unreasonably withheld so unless you have a real gripe you will spend 3 grand to lose. So make sure there is a real issue.

To answer your specifics:

1. What can I do? Do I need a laywer?
No but it is advisable to use one. You go to arbitration.

2. Who should pay for the lawyer fee?
You do. It costs you both around 3 grand.

3. Can I request compensation ?
You may be awarded it or they can force the other person to undo the work if you win.

[Jonovben]

thanks for reply. the neighbour seems a quick do-up-sell, making fast cash. in your case, you still didn't sign anything?
I believe the neighbour was doing that for purpose. trying to add double garage and sell it, but the buyer's laywer seems got some protective aggrement. ask him to get paperwork done before cash into his pocket. Now, he wants to go to arbitration

[Jonovben]

Hi Thanks for Son of G and Ivanp, I would be totally agree.
As I mentioned in my reply above, The neighbour is appreantly a do-up-sell people, He is completely understand what need to be done for a crosslease additions. However, he was lying in the beginning for just want to walk around the paperwork problem. Now he could not because the buyer did not agree.
What pissed me off is his attitude.

Can I refuse arbitration? 3,000 dollars is quite costy.

[Jonovben]

If you found someone cheating you on purpose, would you be upset? and even with a bad attitude?

[Jonovben]

Can I refuse arbitration? how do you define unreasonably withheld ?
someone cheating you on purpose, would you be upset? and even with a bad attitude? would that be good enough?

[Damap]

No you cant refuse arbitration. You can not attend then they will rule against you. The whole issue is: "Is there a real issue?". If they have done nothing unreasonable why are you wanting to fight them? However as already said if they have increased site coverage etc. without your consent go to arbitration. You'll need a lawyer, costs around 3 grand. They have to pay all your costs if you win.

[John the builder]

did they have a building consent?

Ask the council why as owner of his land your permision wasnt sought

The lease agreement likely says he was supposed to get permission before doing the work.

at the very least he is in for 10k in getting the survey re defined

Tell him he has to pay for freeholding the site do you are no longer contrained by his interests