Introduction
Owning property at Terrace Downs
There are a number of ownership interests at Terrace Downs. PHC owns the Fable Terrace Downs Resort, the Golf Course, club house and much of the yet to be developed surrounding open space and the associated infrastructure services, for example roads, gas and water supply.
In addition, there are also privately owned vacant sections, stand-alone houses (referred to as chalets) and unit title apartments referred to as villas. There are 68 Chalet properties (including vacant sections yet to be built on) and 52 Body Corporate Villas. Approximately half of the Villas are owned by the Resort Owner and are operated as hotel accommodation as part of the Fable Resort with the residual villas privately owned. As the Resort owns a number of Villas, it is therefore both the Resort Owner and a Residential Property Owner.
Who owns the Key Infrastructure ?
Roads, water systems, sewage systems?
The roads, water pipes and sewage system (“Services Infrastructure”) are on Resort property and owned by the Resort. The Resort Owner maintains the Service Infrastructure. In addition to providing Service Infrastructure the Resort Owner provides other ancillary services, for example rubbish collection, security services and gardening, referred to as - Property Services. There is a Cost Sharing Agreement that sets out in details how these Property Services are provided and how the Residential Property Owners contribute to the cost of providing those services.
The Residential Properties have an easement registered against them enabling access to the Services Infrastructure. Generally, the easement grants a right of way to access the property, a right to convey water and a right to drain sewage.
The Resort Owner maintains the Resort Infrastructure and the cost of this is shared by the Residential Property Owners and the Resort Owner. There is a Cost Sharing Agreement that regulates this maintenance arrangement and an Owners’ Society that jointly manages this for the benefit of everyone at Terrace Downs. Titles to the Residential Properties have an Encumbrance recorded on them that requires the Resort Owner to provide Property Services and the Residential Property owners to contribute to the cost of such services. The Encumbrance also regulates building and maintenance standards. Residential properties also have easements recorded on them providing a right of way and the right to covey water.
Key Elements.
What are the key elements of property ownership at Terrace Downs?
The following terminology is used in this overview website to explain the rights, obligations and legal framework that has been created to ensure Terrace Downs is managed and maintained to a high standard and that there is a harmonious relationship between the Resort and various Property Owners at Terrace Downs.
Fable Terrace Downs Resort and the Resort refers to the Fable Terrace Downs Resort and associated hotel accommodation, restaurant clubrooms and Golf Club.
Chalets refers to the houses, Sections refers to the vacant lots and Villas refers to the apartments that are within Terrace Downs. The chalets, Sections and Villas are held in separate legal ownership structures to the Resort.
Terrace Downs refers to the general area that encompasses the Fable Terrace Downs Resort, the Golf Course, Villas, Chalets, vacant sections and the associated Resort Infrastructure.
Resort Infrastructure refers to the roads, stormwater systems, water supply and sewage distribution and treatment systems servicing Terrace Downs.
Owners’ Society refers to the incorporated society of which the Residential Property Owners and Resort Owner are members. The Owners’ Society manages and levies costs under the Cost Sharing Agreement, ensures the Resort Owner complies with the Cost Sharing Agreement and ensures the Resort Infrastructure is maintained to a good standard
Encumbrance refers to the memorandum of encumbrance registered on the title to most Residential Properties. This sets out rights and obligations in relation to building, maintenance and the provision of Resort Infrastructure.
Residential Properties refers to the Villas, Vacant Sections and Chalets at Terrace Downs that are not part of the Resort and Residential Property Owners refers to the various owners of those Residential Properties.
Design Guidelines refers to the building design guidelines that set out the standard required for the construction and maintenance of buildings at Terrace Downs.
Levy refers to the levy paid by Residential Property Owners for the Property Services they receive.
Property Services refers to the property services provided by the Resort Owner. In summary these services include, security, water connection, water system maintenance, sanity sewer maintenance, emergency water contingency, roading and footpath maintenance and repairs, gardening and grounds maintenance, including employing a property maintenance manager.
Property Rights
What right do I have to access my property?
As is common in many residential properties in New Zealand, most of the Residential Properties at Terrace Downs have easements registered against them to provide a right of way and the right to convey water and sewage.
In addition, in some cases the Encumbrance referred to below requires the Resort Owner to provide services to the boundary of the property and to ensure that a sealed road passes in close proximity to the property.
Fable Terrace Downs Resort
Property Owners' Levy
Encumbrance + Cost Sharing Agreement
Easement (Right of Way, Water, Etc.)
Right to Build/ Alter/ Maintain Property
Design Guidelines & Building Maintenance Standards
Selwyn District Council Planning Rules
Residential Properties
Owners' Society
Represents Residential Owners, collects a levy and manages property services
Cost Sharing Agreement
Management of services such as water, sewage, roading, gardening and grounds maintenance
Memorandum of Encumberance
The Memorandum of Encumbrance and Infrastructure Management at Terrace Downs
Most of the residential properties have a memorandum of encumbrance (“Encumbrance”) registered on them. This Encumbrance is a key document creating the rights and obligations between the Resort Owner and the owners of Residential Properties.
The Encumbrance sets standards for how properties should be constructed and maintained. As anticipated by the Encumbrance, the Resort Owner has created Building and Landscape Design Guidelines to be followed when building and maintaining properties.
The Encumbrance also puts obligation on the Resort Owner to provide services to the property. These services include roads, water, rubbish collection etc. The Encumbrance requires property owners to pay a levy for these services. The obligations of the Resort Owner and the Residential Property Owners under the Encumbrance have been clarified and documented in a Cost Sharing Agreement.