Infrastructure Growth charges are not recoverable

August 19, 2015

in Property

Property: HousingTerritorial authorities and infrastructure supply entities are imposing more and more levies on land owners.

Often subdividers find that there are one off or specific levies charged in relation to the subdivision.

Questions arise as to whether or not any of these charges are able to be passed on to buyers of individual sections in the subdivision.

The High Court has recently confirmed that a subdivider was unable to pass on infrastructure growth charges imposed by a water services authority as an apportionable outgoing payable by the purchaser.

The Court declared that the infrastructure growth charge did not constitute an apportionable outgoing that may be recovered on settlement in terms of the standard ADLS – REINZ Sale and Purchase Agreement.

The High Court took the view that they were fixed one off payments that occurred while the subdivider / vendor was in possession.

We are able to advise on all aspects of subdivision and redevelopment of land. If you have any queries, please do not hesitate to contact us.

If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:

Paul Farry
09 379 0055 or 03 477 8870


The information contained in this publication is intended as a guide only. It does not constitute legal advice and should not be relied upon as such. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.

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