CERA- Port Hills Red Zone Update


A message from CERAPort Hills residential red zone

Final offer acceptance date

The final date for property owners to accept the Crown offer to purchase eligible properties in the Port Hills residential red zone is 27 February 2015.

The settlement deadline for properties in the Port Hills residential red zone is 6 weeks after the date of the agreement for sale and purchase.

Given the potentially large number of transactions scheduled to settle during the period following 27 February 2015, we ask that practitioners do everything reasonably possible to ensure that preparations for settlement are completed in a timely manner, including sending settlement statements and undertakings as early as practicable.  This may assist those transactions to settle as early as possible in the day.

Case by case extensions

CERA is aware that there may be exceptional circumstances which create a serious impediment to the ability of some property owners in the Port Hills residential red zone to settle within the timeframe specified by the agreement for sale and purchase.  Accordingly, the Chief Executive will consider requests for an extended settlement date on a case by case basis, based on vulnerability and individual circumstances.  Any such request must be made directly to CERA and should be accompanied by as much supporting information as is considered relevant.  Information regarding this process and a case by case extension request form is available at www.cera.govt.nz.

Requests for an extended settlement date must be submitted to CERA by 31 March 2015.  If granted, any extension will be for a limited period of time and in any event will not extend beyond 30 June 2015.

Vacant possession

Settlement will be delayed if vacant possession is unable to be provided by the vendor on the settlement date.  It is particularly important that vendors are aware of this given the upcoming offer acceptance and settlement deadlines, and the implications of the vendor default provisions of the agreement for sale and purchase.

Where appropriate, CERA will continue to conduct pre-settlement inspections to ensure that properties are vacant.

For properties subject to a tenancy, it is the vendor’s responsibility to ensure that the tenancy has been validly terminated and any tenant has actually vacated the property prior to settlement.

Rates following settlement

Please ensure that all rates are paid promptly when your firm has given an undertaking to do so following settlement. Please be aware that CERA will enforce solicitors’ undertakings and ensure that such undertakings are complied with when given.

Keys

Practitioners must continue to ensure that on settlement all of their client’s keys and garage door openers etc are forwarded to CERA.

For further information, please contact info@cera.govt.nz or 0800 7464 2372.