FAQs

Q. A.	What are some of the ways to own property? - Personally: alone or by two or more people jointly or as tenants in common in defined shares; - by an LAQC; - by a Family Trust - and combination of the above
Q. A.	How long will it take to set up a family trust, LAQC or Property Sharing Agreement? Allow 1 week minimum. If also in conjunction with a mortgaged property purchase by a Family Trust or having a Relationship Property Sharing Agreement allow 2 weeks minimum.
Q. A.	Should I consult my accountant? If you are seeking any type of income or tax advantage through property ownership then your accountant is qualified to advise you. Though there are many ways to own and manage property your accountant is uniquely qualified to advise how, why and when one legal structure will deliver the advantage you want from a tax or a financial perspective and another will not.
Q. A.	About the costs: How much does a purchase cost? To purchase 1 property that has a fee simple (freehold), unit title or cross leased title - $650.00 Base Fee plus GST and Disbursements. Plus $150.00 + additional fee each additional Bank Guarantee, Shareholder's or Trustee's resolution. To purchase Occupation License to 1 company share flat - $750.00 plus GST and disbursements. To purchase Occupation License to 1 Retirement Village unit - $1000.00 plus GST and disbursements.
Q. A.	How much does a sale cost? For sale of any of the above types of property - $600.00 plus GST and disbursements. Plus $150.00 plus GST if preparation section 36 certificate required for sale of unit title property.
Q. A.	How much does it cost to re-finance my property? For any mortgaged property - $500.00 plus GST plus disbursements. Plus $150.00 + additional fee each additional Bank Guarantee, Shareholder's or Trustee's resolution.
Q. A.	How much does it cost to set up a Family Trust? Establishing a Family Trust, preparing a new Will and any gifting programme - $1600.00 plus GST plus disbursements.
Q. A.	How much to prepare a Relationship Property Sharing Agreement ready for presentation to my partner's solicitor? $650.00 plus GST and any disbursements. It will cost more if alterations are required by the other party before signing.
Q. A.	How much to incorporate, make LAQC election and obtain IRD # for a company for me? $290.00 plus GST plus disbursements.
Q. A.	What are "disbursements"? The GST inclusive costs to providers of services necessary to your transaction such as for obtaining a search copy of a title, Bank cheque fees, Land or Companies Office registration charges. Depending on the type of property being dealt with sometimes there are costs to Body Corporate secretaries, accountants or mortgagees.
Q. A.	About working with the Real Estate Agent: What should I tell the real estate agent? Say I am acting for you and provide them with my contact details. Then: Ask them to fax me a copy of the offer you are considering before you sign it if you want me to talk it through with you to ensure it's in your favour with no important conditions forgotten. If it's after hours or you cannot reach me in time make it conditional on me approving the form of agreement. If you are purchasing, make the deposit payable only when the agreement is unconditional.
Q. A.	About LAQC'S: LAQC's - why have one? To help reduce the amount of your assessable income that you pay tax on by first deducting any loss your company makes in the course of its business, most frequently the business of owning rental property. A company may make a loss if its outgoings, such as rates, insurance, maintenance and bank interest, exceed its income from rents.
Q. A.	What is some of the basic information I need to incorporate an LAQC company? - Full names, occupations, addresses and IRD # of each director and shareholder. - the split of shares among the shareholders. - your first 3 choices of a name for the company. - address of its registered office, street and postal address.- contact telephone and facsimile numbers.
Q. A.	About Family Trusts: What is a Family Trust? A separate legal entity owing real and or personal property run by trustees for the benefit of its beneficiaries.
Q. A.	Who would benefit from a Family Trust? Anyone who: - wants to qualify for the 65+ rest home subsidy without using up their assets first. - wants use of their assets without risking them to potential relationship or creditor's claims. - wants to safeguard their spendthrift descendants from spending the family inheritance or losing % if their relationship breaks up. - wants to split income between their lower tax bracket family members.
Q. A.	What is some of the basic information I need to establish a Family Trust? - name of the Trust. - full names, occupations and addresses of who is setting up the trust and the people who will be the trustees and known beneficiaries. - IRD # of the person(s) settling property on the Trust;