If you own, or are thinking of purchasing, a cross lease property, you should be aware that you cannot always deal with the property as if it is your own. You will also have obligations towards the other owners under the cross lease.

Restrictions on use, and your obligations, will be set out in your Lease. These may include:

  • The payment for any repairs or work on the property;
  • Using the property for residential purposes only;
  • Using the property in a manner which does not cause disturbance or a nuisance to the other owners;
  • Ensuring that goods or substances of a combustible or dangerous nature are not kept on the property;
  • Using the property only for lawful purposes, and ensuring illegal activity does not occur on the property;
  • Maintaining the property in good condition;
  • Keeping the shared areas free from rubbish and objects that cause an interference to others; and
  • Making structural alterations to the property only with the consent of the other owners.

Failure to comply with any obligations or restrictions will be a breach of your Lease, and you may face legal action against you by the other owners requiring you to comply or compensate them for any loss or damage they incurred from your breach.

To avoid such penalties, it pays to get legal advice from a legal professional to understand how you can use your cross lease property.

 

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Laurie Pallett & Hanifa Kodirova

Associate/Registered Legal Executive
Wellington