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Purchasing a Property – ‘Overseas Persons’? Here are some examples of who is affected: Aunt Janice is a citizen of New Zealand, Australia or Singapore; she wishes to buy a residential property in New Zealand; no consent is required; Uncle Matt is a permanent resident of New Zealand, Australia or Singapore, he has lived in New Zealand for more than 183 days in the last 12 months, is ordinarily resident here, a tax resident; he is unlikely to require consent to purchase a home (similar provisions apply to those with a NZ resident visa); but If you, your cousin, aunt, uncle or other family member do not meet the above criteria, they are likely to require consent to purchase a residential home. The legislation that determines whether or not an overseas person can purchase a residential property in New Zealand is changing from 22 October 2018. The questions are: What has changed? Who is affected? Will the changes make a difference to you or your family members? What has changed and who is affected? Under the amended legislation, residential property will be classified as ‘sensitive land’. This means that a person who is classified as an ‘overseas person’ under the Overseas Investment Act 2005 will need to gain consent from the Overseas Investment Office to purchase a residential property. To gain consent, the overseas person will be required to satisfy one of the tests under the Act. If they are unable to satisfy the test, they may be refused permission to purchase. Will this affect you or your family members?
I qualify as an overseas person what do I do? Practically speaking, if you are an overseas person who does not meet the above criteria, you will need to gain consent from the Overseas Investment Office to purchase your home. Solicitors or conveyancers will be unable to complete your property transaction without a reliable statement from you that you have consent to purchase. There are of course exemptions, exceptions and many details to consider. The experienced property team at Simpson Western are happy to help you navigate the fine print. Call the team on 09 486 3058. Patricia Parker Solicitor SIMPSON WESTERN
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