Well, for all intents and purposes, most buyers will be fine with the improvement/alteration. Most would be happy keeping the additional carport or extension to the deck to view that perfect sunset over Rangitoto.
But the objections typically do not come from buyers directly. The reality is that the problem often comes from lenders who are advised by lawyers that the title is defective. This has a negative impact on the value of their security (future resale) and naturally raises the banks’ alarm.
Some buyers do not want to take the risk that their other cross-lease owners will object to such alterations and force them to remove them.
The ADLS standard sales and purchase agreement
Now, when it comes to the selling or buying of residential property in Kohimarama, Glendowie, Orakei, St Heliers, Mission Bay or Remuera, almost everyone uses the ADLS standard sales and purchase agreement.
Under that agreement (unless you are selling/buying via auction), it is provided that the following can be requisitioned (in clause 6.3):
- alterations to the external dimensions of any leased structure (such alternations limited to alternations that are both ATTACHED to the leased structure and ENCLOSED); or
- buildings or structure not intended for common use which are situated on common area
What’s A Title Requisition?
A title ‘requisition’ means the purchaser can object to the title within 10 working days from the date of the signing of the agreement.
This is above and separate from any other conditions that the purchaser may require (for e.g. building or LIM), and is unlikely to be removed from the standard sales and purchase agreement. In other words, this title requisition clause is already built into the standard sales and purchase agreement. The removal/striking out of such a clause will immediately raise alarm bells.