As you will no doubt be aware, Labour introduced a Bill late last year to amend the Overseas Investment Act. Their intention was to bring all residential land under the Act. Previously the land affected by the Act was limited to (in very broad terms) farming properties and land adjoining waterways. The act once amended will affect all residential land.
Overseas persons are defined as persons who are neither NZ citizens or are not ordinarily resident in NZ. Such people will generally not be permitted to purchase residential land. Australians are included in this definition of Overseas Persons.
The act is expected to pass early this year and will come into effect 10 working days after it receives the Royal Assent. Any contracts entered into before the date the act comes into force will not be affected, so there is a limited window for overseas persons to purchase residential property.
This will be a major change to how residential property transactions are treated and will require vigilance by agents and solicitors in dealing with potential overseas person.
As always, I am very happy to be contacted with any queries you may have about this particular topic or other property matters.
Director, Lava Law Limited
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