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I own a 500 sqm property. My sister and I, both in our 60s,

Hi there I own a 500...
Hi there
I own a 500 sqm property. My sister and I, both in our 60s, would each like to build a 2 bedroom house on it. What would be the simplest setup for this as far as the land is concerned?
Thanks
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Answered in 22 minutes by:
9/24/2017
Chris The Lawyer
Category: New Zealand Law
Satisfied Customers: 23,773
Experience: 38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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The first issue is whether you can get planning consent to this construction. You would need to ask the local council whether two dwellings could be built on this land. Often builders and architects can give good advice as well. You need to decide if you are sharing the land so it remains in one title or if you want to subdivide. If you cannot subdivide but are permitted to build two dwellings you need to decide how the land is to be shared

The best way would be to sign a formal property agreement which sets out the terms under which you are sharing the land. This would need clauses about sale and what happens if one you no longer wants to keep this property and any other terms you need

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Customer reply replied 9 months ago
Thanks for that.
My understanding is that we can build 2 dwellings, but have to have the agreement of 2 neighbours as the property is down a right of way. Assuming that is correct then you are suggesting that my sister buys a share of the land and we own it 50/50 or whatever percentage we agree on and it stays in one title, with the necessary safeguards in place? Sounds a whole lot less stressful than subdividing!

If subdividing is too expensive, which is likely, you can reach an agreement with your sister about the building and use of the land. But that wouldnt be binding on any subsequent purchaser in the future, as it would be a private arrangement. If that suits your needs then you could do that. But you would need to consider the future and your wills, in case the shared arrangement no longer suited one of you, and the other had to bought out. A formal subdivision would leave each of you free to deal with the land as you want on the other hand

Chris The Lawyer
Category: New Zealand Law
Satisfied Customers: 23,773
Experience: 38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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