Dear Client,
Thank you for choosing Mackie and Co Limited to act for you.
We will write to you shortly with reference to the matter we have been instructed to assist you with. To ensure that you are fully aware of our obligations to each other, we enclose our standard terms of engagement which can be summarised as follows:
Our Commitment to You
We will:
Let you know how to make a complaint and deal with any complaint promptly and fairly.
The obligations lawyers owe to clients are described in the Rules of Conduct and Client Care for Lawyers. Those obligations are subject to other overriding duties, including duties to the courts and the justice system. If you have any questions, please contact us on (09) 838 9997 or at www.mackielaw.co.nz or the Law Society on 0800 261 801 or www.lawsociety.org.nz.
Please be aware that we accept your instruction on the understanding that you have made and will continue to make full and frank disclosure of all relevant facts to the matter. We will only act on your clear instructions. Where instructions cannot be reasonably obtained from you, we will stop work until those are received.
We wish to formally record that our services will be restricted to the provision of legal advice and, as such, suggest that you liaise with your accountant or other professional advisor to obtain clarification as to any other non-legal issues that may arise in relation to transactions we are handling on your behalf.
In providing conveyancing services to you, we do not carry out valuations of property or business, nor do we determine whether the property or business meets your investment profile. We therefore recommend that you consult a suitably qualified professional such as a registered valuer, financial advisor and/or accountant in relation to those issues and are more than comfortable to provide recommendations if required.
We do not provide investment advice in respect of financial products.
People Responsible for Your Work
Kelvin Mackie, Principal/Director will have overall responsibility for work on this matter. It is important for you to appreciate that Kelvin is supported by a very experienced registered legal executive, Anne Tingey and a very experienced legal assistant, Jo Eden who will assist in the administration and completion of certain aspects of various transactions.
The Basis of Our Charges
Unless otherwise agreed, our fees are based on a range of factors as set out by the New Zealand Law Society including time, expertise, importance and urgency and results achieved.
Kelvin Mackie’s current hourly rate is $450.00 plus GST per hour.
Anne’s hourly rate ranges from $150.00 plus GST per hour to $300.00 plus GST per hour.
In the interests of clarity, we confirm that on the majority of conveyancing transactions we do not render invoices that are based on an hourly rate charge.
In particular we do not keep time records on files relating to the provision of conveyancing services.
If required, we are more than comfortable to provide you with a written fee estimate which will include a breakdown of the various components of the proposed transaction together with an indication of the writer’s anticipated attendances.
We confirm that the hourly rates referred to herein provide a guideline with reference to a particular person’s time in attendance.
As previously recorded, the Law Society have set out a number of factors that are to be considered in determining as to whether a fee is fair and reasonable, including but not restricted to the following factors:
· The skill, specialised knowledge and responsibility required to perform the services properly.
· The importance of the matter to the client and the results achieved.
· Urgency and other relevant time limitation circumstances.
· The degree of risk assumed by the lawyer in undertaking the services.
· The complexity of a matter and the difficulty or novelty of the questions involved.
· The experience, reputation and ability of the lawyer.
· On property transactions, where the value of the property subject to the conveyance is greater than $2,500,000.00 our base fee will commence at 0.15% plus GST and disbursements.
· Commercial transactions incorporating leasing arrangements over $2,500,000.00 will be subject to a base fee 0.15% plus GST of the contract price.
· Where we are retained as solicitor on the record for matters that are referred to a barrister, we reserve the right to charge a sum equivalent to five percent (5%) of the barrister fee plus GST.
We also charge for disbursements such as Land Information New Zealand registration, LIM Reports and, where relevant additional search and registration fees. We will ensure that these will be itemized separately and will notify you if any fees or disbursements need to be paid for in advance.
In relation to Land Information New Zealand Registration, we charge a processing fee of $15.00 per document presented for registration (Registration processing fee).
We also charge standard office administration costs of approximately $68.00 per transaction plus GST to cover costs of photocopying, postage, facsimiles and phone calls.
In circumstances where we render interim invoices, we reserve our right to include in those invoices the administration costs on an invoice by invoice basis.
As such it may transpire that administration costs exceed $68.00 on an individual transaction.
A significant component of our practice relates to the creation and administration of discretionary family trusts.
For the most part, we will be in a position to provide a written fee estimate in advance of undertaking Trust related attendances at the time of confirming your instructions and the basis of our retainer.
At present, we do not charge an annual fee where our client appoints our firm independent trustee, however, note that such an appointment will require an annual review of the Trust’s affairs, which in most circumstances will be in the vicinity of $450.00 plus GST.
Where the trustee company is retired, our costs associated with that process will be in the vicinity of $500.0 plus GST and disbursements, together with costs associated with re-documenting any loans and securities.
Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Compliance Charges
As at the 1st of July 2018 our practice became subject to the provisions of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
As part of that process, we are now required to undertake customer due diligence before providing services to clients and depending upon the level of due diligence required may render a separate invoice to you to cover our costs of compliance.
In most circumstances our fee for completing AML compliance will be in the vicinity of $200.00-$250.00 plus GST per person.
Where we are required to undertake AML on a limited liability company, our fee will be $400.00 plus GST together with a further $200.00 plus GST per entity in circumstances where we are required to undertake due diligence on independent third-party shareholders and/or non-related directors.
Our fee for completing AML compliance in respect of discretionary family trusts will be $400.00 plus GST.
Where we are required to undertake due diligence on non-related trustees, there will be an additional fee of $200.00 plus GST per trustees.
Our fee for undertaking AML compliance on charitable trusts will be $500.00 plus GST.
Where we are required to undertake due diligence on independent trustee entities (corporate), our fee will be $400.00 plus GST.
We anticipate that circumstances may arise where we are required to undertake enhanced due diligence in relation to a client’s entity and/or source of funds.
In this situation we will provide you with an indication as to the costs in completing that due diligence at the time of receiving instructions from you as to the entity you wish to use for a particular transaction where the anticipated costs are likely to exceed the estimates provided herein.
Unfortunately, our legal requirements for completing enhanced due diligence on source of funds will vary on a case-by-case basis and as such will be invoiced on a time and attendance and complexity basis.
We use a third-party company, APLYiD Limited, to assist with the client identification, customer due diligence and enhanced due diligence process.
Kiwisaver Withdrawal Fees and Home Start Grant Applications
Where we are instructed to assist in the processing of Kiwisaver withdrawals or Home Start Grant applications our basic fee in respect of the same is as follows:
1. Kiwisaver Withdrawal Application - $300.00 per application plus GST
2. Home Start Grant Application - $300.00 per application plus GST
In circumstances where issues arise with reference to the processing of these applications, we reserve our position to charge for additional attendances based on the complexity and requirements of a particular application.
Billing Arrangements
To help you budget we may issue interim accounts for work in progress with a final bill issued on completion.
Invoices are due and payable within 7 days of the date of invoice.
We reserve the right to charge interest for late payment of invoices at a rate of five percent above our firm’s main trading bank’s 90-day bank bill buy rate as at the close of business on the date payment became due.
Interest will accrue from the date of the invoice up to and including the date of repayment in circumstances where the invoice has not been paid within seven days of the date of issue.
We reserve the right to suspend work on a file/matter in circumstances where invoices have not been paid in accordance with the requirements specified herein.
We may deduct outstanding fees, costs and disbursements from funds held on your behalf at any time.
In circumstances where invoices have not been paid within 20 days, we reserve our right to refer the same to debt collection agencies for notation as against your credit rating and for recovery of the balance owing, interest on the balance owing and the costs of recovery.
We reserve the right to terminate our retainer by written notice to you.
Professional Indemnity Insurance and Fidelity Fund
We hold professional indemnity insurance that meets or exceeds standards specified by the Law Society. The Law Society maintains the Lawyers Fidelity Fund for the purposes of providing clients of lawyers with protection against pecuniary loss arising from theft by lawyers. The maximum amount payable by the Fidelity Fund by way of compensation to an individual claimant is limited to $100,000.00. Except in certain circumstances specified by the Lawyers and Conveyancers Act 2006, the Fidelity Fund does not cover a client for any loss relating to money that a lawyer is instructions to invest on behalf of the client.
Complaints
If you have any concerns or complaints, you should raise them in the first instance with Kelvin Mackie.
If you prefer not to raise a matter with Kelvin, you may wish to contact the New Zealand Law Society’s Complaint Service at 26 Warring Taylor Street, P O Box 5041, Wellington 6145, Tel (04) 472 7837 or (0800) 261 801, Fax (04) 473 7909
Completion
When this matter is completed, we will advise you accordingly and provide a brief summary of the work undertaken if we have not already done so, together with a statement of account recording the receipt and payment of all funds. Where appropriate we will also identify any necessary future action that may be required.
Anti-Money Laundering and Countering Financing of Terrorism Act 2009
New Zealand has passed a law called the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (we will call it the AML/CFT law). The purpose of the law reflects New Zealand’s commitment to the international initiative to counter the impact that criminal activity has on people and economies within the global community.
Recent changes to the AML/CFT Act mean that from 1 July 2018, lawyers are required to comply with its requirements. This law requires lawyers to do a number of things to help combat money laundering and terrorist financing, and to help Police bring the criminals who do it to justice. The AML/CFT law does this because the services law firms and other professionals offer may be attractive to those involved in criminal activity.
Please contact Kelvin Mackie if you have any queries or concerns.
Overseas Investment Act 2005
From 22 October 2018, Section 51A of the Overseas Investment Act 2005 requires a purchaser (including companies and trusts) of residential land (whether freehold or leasehold) to complete a Residential Land Statement relating to their eligibility to buy land in New Zealand and whether the transaction requires consent under the Act.
Please contact Kelvin Mackie if you have any queries or concerns.
Conclusion
We value your instructions in this matter and look forward to their successful completion. We also look forward to an ongoing relationship with you, so please retain this letter as the core basis of our relationship and our commitment to you to attend to your affairs diligently, with an efficient, effective and professional service.
We enclose our standard terms of engagement which will apply in respect of all work that our firm carries out for you and again thank you for your instructions.
Yours faithfully
MACKIE AND CO LIMITED
K R Mackie
Principal
Email: kelvin@mackielaw.co.nz
Website: www.mackielaw.co.nz
For more information please contact us or you can request a quote.