FAQ


 Property Tax

 

In recent years, more people have been buying and selling properties. Did you realise income from property sales is like any other income? You need to pay tax on it.

When do you need to pay tax on a property sale? It all depends on your intention when you bought the property. If you bought a property with the firm intention of selling it when prices rise - to make a gain from the increase in its value - the  profit is likely to be taxable. This doesn't mean you need to pay tax when you sell the family home. If you bought a property to provide a family home, any profit from the eventual resale will most likely not be taxable.

It usually comes down to your intention when buying a property. A good test is to ask yourself: "What were my reasons for buying this property?"

To work out your intention, Inland Revenue listen to what you say, and they look at your actions. For example, Inland Revenue may look at your history in buying and selling properties, or at statements you made to a bank manager or advisor when you bought the property. Everyone's circumstances are different, and we consider all the facts on a case-by-case basis.

Inland Revenue looks closely at property transactions over the last five years or so, and they have already identified some of the common errors people make. For example sometimes rental investors move into trading and forget to change their tax position. In other cases, sections might change hands before title is issued, without the seller realising - for tax purposes - property also includes a bare section. In both these cases, any profit from the sale of the property is likely to be taxable, if the property was bought with the intention of reselling it.

If someone doesn't pay their tax, we all miss out. The estimated loss of revenue from undeclared property income is more than $100 Million a year - revenue that should benefit the New Zealand community.
If you think you should have paid tax on the sale of a property but didn't, please talk to Inland Revenue or to a tax advisor.

 

 Your Legal Rights: Trees, Fences and Your Neighbours

 Survey Mark Protection

 

Thousands of vital marks exist in New Zealand- many are below ground level and invisible to most of us. It is in everyone's interests to take care of survery marks and protect them from damage.

Land Information New Zealand (LINZ) provides a service that helps to preserve the marks. If you're planning works that could disturb survey marks, it's importants that you contact LINZ for help before you begin. LINZ provides a free service to help you avoid the survey marks.

What we need from you

Contact LINZ national office at www.linz.govt.nz or call 0800 ONLINE, well before you start work to provide a plan of proposed works. If no marks are affected then linz will contact you within a few days then you can start work immediately. If marks are at risk, you will receive prints of plans showing you where the marks are and you can either:

  • Divert your works to avoid disturbing marks or,
  • Contact a Licensed Surveyor to protect the marks by offsetting and replacing the marks.

Why survey marks are important

Survey marks provide a wealth of important information to a wide range of people in the community. They are mainly used to support the surveying of property boundaries, but are also important to engineering, roading, mapping and other land surveys.

WARNING- Disturbing Survey Marks is an Offence

Responsibility for the reinstatement or replacement of marks destroyed or disturbed rests with your organisation under Section 55 of the Cadastral Survey Act 2002. A Licensed Cadastral Surveyor must oversee the reinstatement or replacement to the standards set by the Surveyor-General.

All information has been sourced from the Survey Mark Protection information brochure, April 2003, avaliable from the offices of Pirie Consultants or by contacting Land Information New Zealand

 

 Precise Land Measurement

 

There are times when your land and the features on, above or below its surface will need to be located. A surveyor professional who has the required training, equipment and skills necessary to efficiently and accurately carry out this task.

Removing the Uncertainty

Knowing the exact level and location of your land and associated features means that any future planning and design can be undertaken with confidence.

When does land need to be accurately measured?

  • To establish the correct location of title boundaries
  • To assit in the design of a building and to ensure that it is placed on the section correctly
  • To certify that a building or structure has been located in terms of a building or resource consent
  • To determine the area and prepare a map of a property for planning purposes
  • To assist in the design and placement of large civil structures such as bridges, dams, tunnels or roads
  • To assist in the design of new subdivisions
  • To allow the production of accurate as-built plans

All information has been sourced from the Precise Land Measurement information brochure, avaliable from the offices of Pirie Consultants or by contacting the New Zealand Institute of Surveyors

 

 Land Development Engineering

 

Have you ever wondered how a bare paddock can be turned into a network of roads, drains and cables that can support a vibrant community of people? A surveyor is the only professional whose training is directed at understanding and managing this transformation- known as land development.

Creating a Community

Surveyors have many roles in the land development process. They can interpret the laws and rules relating to land development and obtain the necessary consents. They are also involved in placing pegs in the ground to mark out the new sections. More importantly however, a surveyor can work with the natural shape of the land to create a functioning system of roads and services upon which the new community will depend.

A surveyor can undertake the following engineering tasks related to land development:

  • Carry out a survey to determine the shape of the land
  • Design roads to provide access to the new sections
  • Design services (e.g. drainage and water pipes) that use the natural shape of the land to minimise costs while still meeting national and local standards
  • Reshaping the land to increase its value and functionality
  • Prepare the contractors' documents and measure the quantities of materials needed (and used)
  • Supervise the construction of the community to ensure it meets design adn council requirements

All information has been sourced from the Land Developing Engineering information brochure, avaliable from the offices of Pirie Consultants or by contacting the New Zealand Institute of Surveyors

 

 Subdivision of Land

 

A Subdivision takes place when existing parcels of land are divided into smaller parcels or when an existing boundary is altered.

The Subdivision Process

Subdivision Design and Resource Consent

An NZIS member can discuss your requirements with you adn then design the subdivision and apply for consents from the relevant authorities.

Subdivisional Approval

Once the Local Authority has approved the subdivision, your surveyor can assist you to meet any required conditions (such as installing drains to your new section).

The Legal Survey of Subdivision

NZIS members who hold a cadastral surveying license can complete the legal survey and lodge the final dataset that will form part of New Zealand's official survey record with Land Information New Zealand (LINZ).

Issue of Title

When LINZ has approved your surveyor's plans and your solicitor has lodged the required legal documentation, your new titles can be issues.

All information has been sourced from the Subdivision of Land information brochure, avaliable from the offices of Pirie Consultants or by contacting the New Zealand Institute of Surveyors.

 

 Redefinition of Boundaries

 

A Redefinition Survey may be required to locate the legal boundaries of your property for building consent purposes, before erecting fences, or to determine the extent of a parcel of land before purchase.

Locating Your Boundaries

Avoid Disputes

Knowing the exact location of the boundaires of your land will help avoid expensive encroachment disputes and ill-will between you and your neighbours.

An NZIS member who is a Licensed Cadastral Surveyor can:

  • Help resolve existing boundary problems
  • Indicate or confirm the correctness of existing boundary marks
  • Replace boundary marks which have been removed or disturbed
  • Place additional marks to better delineate a boundary
  • Prepare legal survey data when necessary to document the location of the boundaries of your land
  • Advise you of possible remedies when boundary disputes or encroachments have occurred

All information has been sourced from the Redefinition of Boundary information brochure, available from the offices of Pirie Consultants or by contacting the New Zealand Institute of Surveyors

 

 What are Unit Titles?

 

Unit title ownership is an alternative form of land and building ownership. Unit titles enable a single block of land to be used simultaneously by several owners in a variety of ways.

Each unit title on a property will include a Principal Unit- this is your primary ownership interest and is generally a specified space bounded by walls, ceiling and floor of a particular building.

It may also include an Accessory Unit- this is any area, such as a car park, garage or garden, specifically set aside for the use of the owner of a principal unit.

Any shared facilities such as common driveways, swimming pools or tennis courts are referred to as Common Property and may be used by all owners.

All of the owners of the units constitute the Body Corporate- the body responsible for management of the property. The Body Corporate is responsible for a number of duties including;

  • insuring the property
  • maintaining the proerty
  • compliance with local authority requirements
  • managing administration funds

If you require further information please contact us at Pirie Consultants, by using the contact form on the left.

All information has been sourced from the Unit Ttiles information brochure, avaliable from the offices of Pirie Consultants or by contacting the New Zealand Institute of Surveyors

 

 Property Ownership and Rights

 

Land can be held in an number of different forms of ownership and can be subject to a myriad of rights and restricitions. A surveyor is a land professional who understands the rights associated with your property and can therefore help eliminate any confusion.

What form of ownership do I have?

Your land may be owned in a freehold (the most common), cross-lease or unit title, or it may be leased for a fixed period of time.

What other rights are associated with my land?

  • There may be easements over or in favour of the land
  • The public may have a right of access along a 'paper' road or the edge of a river, lake or the sea
  • The property may enjoy riparian rights along a natural water boundary
  • The use of part of the property may be restricted by a convenant or consent notice

Where are these rights located?

A surveyor can interpret the land records, provide advice and translate the associated rights onto the ground-where it matters most.

Unlocking the Potential

Understanding the extent and type of rights associated with your land is important

All information has been sourced from the Property Ownership and Rights information brochure, avaliable from the offices of Pirie Consultants or by contacting the New Zealand Institute of Surveyors.