Cross lease DISPUTES
Low cost & fixed fee serviceNZDRC offers a special fixed fee service for cross lease residential disputes.
Cross lease titles have been used for many years as a simple way to subdivide land. Under this title, multiple homeowners jointly own the land as a whole, and have the right to use and occupy their own home together with any other area intended for exclusive use.
A cross lease title includes an agreement between the homeowners setting out the terms and conditions of the lease. Typically the lease requires the homeowners to seek consent from the other lease holders to make any major building or renovation work.
This can and does often lead to disagreement between the parties to the cross-lease. These disputes are commonly resolved by arbitration. Most cross-lease agreements already contain an arbitration clause – this means that the homeowners have agreed to refer disputes to private arbitration instead of going to court.
Some homeowners prefer to use mediation instead. This is particularly effective where neighbours have found themselves in dispute and would like a better chance of repairing the relationship between the parties as they work together to come up with a solution to the issues that have arisen. NZDRC’s mediators have a high success rate in terms of positive outcomes and we would highly recommend this service to homeowners in dispute under a cross-lease.
If you’re not sure how to proceed, contact our Registry team who will be able to assist.
Mediation
Mediation is a consensual, confidential, and informal negotiation process in which parties to a dispute use the services of a skilled and independent mediator to assist them to negotiate a mutually acceptable settlement of that dispute which meets their interests and needs and which need not conform to strict legal rights or general community standards.
To proceed under this fixed fee service, the parties will need to agree to mediate under the NZDRC Mediation Rules. Parties can do this by completing our Agreement to Mediate.
The mediation itself will take place by videoconference and will be limited to a half day (up to four hours). Lockdown levels do not affect this service – mediation can take place as soon as the parties are ready.
The fee for this service is fixed at $3,450 including GST.
Please contact us for further information.
Arbitration
Arbitration is a legal process governed by the Arbitration Act 1996 under which an arbitrator decides matters in dispute according to the law. The arbitrator’s decision is binding on the parties.
The parties can choose the procedural rules that will apply to their arbitration. NZDRC’s ECA45 Arbitration Rules are a popular choice for these types of disputes. This process provides the parties with a fast and cost-effective arbitration.
Under these rules both parties have the opportunity to present their submissions and evidence to the arbitrator with a decision issued within 45 working days. The arbitration process is ‘on the documents’. In other words, the parties will exchange their submissions and evidence in writing and there will be no hearing. This allows for significant time and cost savings and provides more certainty around timeline and fees.
To proceed under this fixed fee service, the parties will need to agree to arbitrate under the NZDRC ECA45 Arbitration Rules. Parties can do this by completing an Agreement to Arbitrate.
The cost of the arbitration is fixed at $7,250 including GST.
Please contact the Registrar for any further information.