The Encroachment Agreement is a crucial legal instrument in New Zealand property law, used when a structure, building, or feature of one property extends onto or over neighboring property. This document becomes necessary in various situations, such as when existing structures are found to encroach during property surveys, or when new developments require partial encroachment on adjacent land. The agreement ensures compliance with New Zealand property law while protecting both parties' interests through clear definition of rights, responsibilities, and obligations. It typically includes detailed specifications of the encroachment, maintenance requirements, payment terms, and duration of the arrangement, while ensuring alignment with local council regulations and the Property Law Act 2007. This document is particularly important for risk management and maintaining clear property rights in situations where complete removal of the encroachment is not practical or desirable.
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1. Parties: Identifies the property owner (Grantor) and the encroaching party (Grantee)
2. Background: Explains the context of the encroachment, including property details and nature of the encroachment
3. Definitions and Interpretation: Defines key terms used in the agreement and sets out interpretation rules
4. Grant of Encroachment: Specifies the exact nature and extent of the encroachment permission being granted
5. Term and Renewal: Specifies the duration of the agreement and any renewal provisions
6. Fees and Payments: Details any fees payable for the encroachment, including ongoing payments if applicable
7. Maintenance and Repair: Outlines responsibilities for maintaining the encroaching structure and affected areas
8. Compliance Requirements: Sets out obligations to comply with laws, regulations, and council requirements
9. Liability and Indemnity: Addresses risk allocation and indemnification obligations
10. Termination: Specifies circumstances under which the agreement can be terminated and the consequences
11. Dispute Resolution: Outlines the process for resolving any disputes between the parties
12. General Provisions: Includes standard boilerplate clauses such as notices, assignment, and governing law
1. Insurance: Required when the encroachment presents significant risks requiring specific insurance coverage
2. Council Requirements: Included when specific local authority conditions must be met
3. Access Rights: Needed when maintenance or inspection of the encroachment requires access to the other party's property
4. Future Works: Required when there are planned modifications or developments that may affect the encroachment
5. Transfer of Property: Included when specific provisions are needed regarding the sale of either property
6. Costs: Added when there are specific cost-sharing arrangements or when one party bears all costs
1. Schedule 1 - Property Details: Legal descriptions and titles of both affected properties
2. Schedule 2 - Encroachment Plan: Detailed plans or drawings showing the exact location and dimensions of the encroachment
3. Schedule 3 - Fee Schedule: Details of any initial and ongoing fees, including calculation methods if applicable
4. Schedule 4 - Photographs: Current photographs documenting the encroachment and affected areas
5. Schedule 5 - Council Approvals: Copies of relevant council permits or approvals
6. Appendix A - Maintenance Standards: Specific requirements for maintaining the encroaching structure and affected areas
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Relevant Teams
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Relevant Roles
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