Many legal minds making NZ LAW work

We are an association of independent legal practices, proactively sharing ideas and expertise for the benefit of our clients.

Property briefs

Published: 15th November 2018

Author: Bayley Roylance, RMY Legal

Published in: Property Speaking, No 29. Summer 2018

The agreement for sale and purchase

Checking the conditions

Given the significant financial commitment involved in purchasing a property, you want to make sure your investment is sound. One way of ensuring that a property is right for you is to include some conditions in your agreement for sale and purchase. If you do so, the purchase will only go ahead if your conditions are met. An agreement with no conditions included is ‘unconditional’ and you are obliged to complete the purchase once the agreement is signed.

Some common conditions that can be included in an agreement are conditions that give you time to sell your existing property, check what restrictions there are on the property’s title, or get a building report before the agreement becomes unconditional.

Depending on your situation, you may be able to rely on the standard conditions on the front page of the agreement. You can also write additional conditions or alter the standard conditions on the ‘Further Terms of Sale’ page.

The wording of a condition can be critical and may determine whether you can rely on it to cancel your agreement. If not written precisely to cover your situation, you could be obliged to satisfy the condition even where a ‘deal-breaker’ issue comes to light.

We should emphasise that the conditions are not there as an ‘out’ if you simply change your mind about a property purchase. Correct wording of conditions is vital. We will work with you to ensure you present the best possible offer to a vendor that also protects your interests if the conditions are not satisfied.

The chattels

The concept of buying ‘everything but the kitchen sink’ is one that does not apply to property purchases as a matter of course. Many household items that you will see in an open home will not actually be sold with the property.

Only ‘fixtures’ are automatically sold with a property. Fixtures are items that are permanently fixed to the property such as showers and electrical wiring. All other moveable items are ‘chattels’ and are only included in the sale if specifically listed in your agreement for sale and purchase.

A standard agreement includes a list of suggested chattels, such as the stove and light fittings. This list can be tailored to include any chattel you wish to buy with the property, if the vendor agrees of course.

It is not always obvious whether an item is a chattel or a fixture. Misunderstandings can easily arise and lead to a later dispute. To help avoid this, we recommend carefully checking the chattels list in the agreement. When in doubt about whether something you wish to buy is a chattel or a fixture, you should include it in the chattels list. This way, you will be clear what items you are buying with the property.

Deciding a settlement date

Having made all the arrangements to buy or sell a property, making a quick decision on the settlement date may be a priority. Before you decide, however, do think hard about the time needed to complete the ‘behind-the-scenes’ work for the transaction, including our work preparing for the property transfer.

The time needed before settlement date will be greater in transactions involving:

  • Mortgages or home loans as your lender will need time to process the relevant documents
  • KiwiSaver funds as some KiwiSaver providers can take more than three weeks to process an application to withdrawal funds
  • Property where a tenant needs to be given notice to move, which is generally a minimum of 42 days, and
  • A vendor or purchaser who lives out of town as they may be delayed in meeting their lawyer.

Also, if you are selling your house before buying another, you may want a delayed settlement or for settlement of both transactions to occur on the same day to ensure you have somewhere to go.

It is important to get the settlement date right at the outset. The other party may not agree to change the settlement date later and, if you are not prepared by settlement date, you may have to pay the other party compensation.

To help avoid this situation, common practice is to set the settlement date as a certain number of working days from the date the agreement becomes unconditional. The number of working days required ultimately will depend on what work needs to be done prior to settlement. If you need assistance, we can offer advice on how much time you likely will need for your particular transaction.

 

Letting fees are now defunct

From 12 December 2018 tenants can no longer be charged a letting fee. The legislation banning letting fees was passed in late October.

Many tenants paid their landlord a letting fee of a week’s rent plus GST at the beginning of their tenancy. These letting fees cover the costs of the landlord’s letting agent or lawyer in setting up the tenancy.

Whilst tenants will be pleased with this change, landlords have given the news a lukewarm response saying that the letting fee ban may lead to rent rises.

Related Articles

  • Auckland
  • Bay of Plenty
  • Canterbury
  • Coromandel
  • Gisborne
  • Hawke's Bay
  • Kapiti Coast
  • Manawatu - Wanganui
  • Marlborough
  • Nelson
  • Northland
  • Otago
  • Southland
  • Taranaki
  • Waikato
  • Wairarapa
  • Wellington
  • West Coast

Simpson Western

Simpson Western is a leading law firm in Auckland North, with offices in Takapuna and Silverdale.

The firm has ten partners, supported by a team of specialist lawyers, legal executives and a general manager, together with a team of excellent support staff.

Region: Auckland

Phone: 09 486 3058

Jackson Reeves Lawyers

Jackson Reeves is a long established law firm that has been providing quality legal services in Tauranga and the Bay of Plenty region for over 60 years. We have proven expertise in business and personal law and deliver high calibre legal advice and solutions that work for you.

Choosing a law firm is not always an easy decision but you can take comfort in the knowledge that Jackson Reeves take a client focussed approach, providing specialist and practical legal services. Old fashioned virtues, like integrity, transparency and trust are of importance to us and we value quality, relationships and diversity.

Region: Bay of Plenty

Phone: 07 578 2129

Malley & Co

Our experienced, solutions-focused team will work hard to get you the best possible outcome, whatever your legal needs.

Region: Canterbury

Phone: 03 379 0712

Purnell Lawyers

There is nothing as inevitable as change. Since opening for business early last century, we at Purnell Lawyers have seen many changes both in name and in the people who have made up the members of our team. We have been privileged to have served the public throughout all of these times. 

We are confident that we will continue to bring top quality legal services to our clients well into the future.

Region: Coromandel

Phone: 07 868 8680

Woodward Chrisp

At Woodward Chrisp we strive to meet the needs of our clients by providing a wide range of high quality legal services within a supportive and collaborative environment.

Woodward Chrisp is the amalgamation of two long established Gisborne legal firms: Woodward Iles & Co and Chrisp and Chrisp. Today’s partners are Ross Revington, Adam Simperingham, Jeff Allen and Ellie FitzGerald.

Region: Gisborne

Phone: 06 869 0900

NZ LAW Limited

NZ LAW Limited is an association of independent legal practices with member firms located throughout New Zealand. There are currently 53 member firms practising in a wide range of legal disciplines ranging from business law, home buying and selling, immigration law and intellectual property to aviation law and viticulture.

The group was established in 1992 when about five law firms met in Auckland to find a way to benefit their clients by replicating the conviviality and the sharing of ideas and expertise that occurs in larger law firms, but still be able to retain client confidentiality and their own independence.

Region: Hawke's Bay

Phone: 06 835 5299

BMC Lawyers

BMC lawyers has built a reputation for providing quality service and delivering real results. Our strength is our broad-ranging legal experience that gives us the ability to match clients with the right mix of legal skills for their particular needs.

Our legal professionals are passionate about what they do and work alongside a talented team of support and administration staff to make a real positive difference to our clients.”

Region: Kapiti Coast

Phone: 04 296 1105

Innes Dean Tararua Law

Our history in the Manawatu and Tararua Districts dates back to 1884. With offices in Palmerston North and Pahiatua our firm stands on a long tradition of high standards and sound legal advice.

Our size means that every one of our clients are dealt with on a professional, yet personal basis.

Region: Manawatu - Wanganui

Phone: 06 358 6075

Wain & Naysmith

Based in Blenheim, Wain & Naysmith Lawyers is a full service law firm, and a powerhouse for property, family and business law.

We pride ourselves in providing clear and cost effective legal solutions and practical advice for you, your family and your business.

Region: Marlborough

Phone: 03 520 6103

Knapps Lawyers

As a firm, we promise to look after you and treat you in a manner that we would expect to be treated by a professional services provider; we promise to use every available legal remedy available to us to resolve your issue and to do what you ask us to do in a timely manner.

We will hold in strict confidence all information that we acquire through our work for you and which concerns your business or personal information.  The only exceptions are where you authorise us to disclose such information or where we must do so by law.

Region: Nelson

Phone: 03 544 7888

Law North Limited

We pride ourselves on being a "general store" for most legal issues but also have several in-house experts in specialised areas including trusts, relationship property, business and property law.  No matter what your issue is - whether you are looking for trusted legal advisers to steer you through life, or you have a one-off problem to sort out - we would be pleased to help.

Law North Ltd provides a broad range of legal services across the Far North district from our base in Kerikeri.   We have operated in the area for over 100 years and have a long-standing history of providing legal services to a diverse client base, including businesses and private clients.   Our directors and their families have been part of the Bay of Islands community for several generations and remain committed to the area and its people.  We often call upon strong local knowledge to resolve issues for clients whilst remaining vigilant about client confidentiality.

Region: Northland

Phone: 09 407 7099

Downie Stewart

At Downie Stewart Lawyers Dunedin we are focused solely on helping you achieve your goals. 

We have an incredibly talented team of Dunedin lawyers that will listen to you and provide you with sound legal advice, always striving for the simplest solution to any problem.

We are committed to this region and have worked with Dunedin and Otago families and businesses since 1867. 

Region: Otago

Phone: 03 477 2263

Sheddan Pritchard Law Ltd

Incorporating traditional values and a fresh perspective, Sheddan Pritchard Law is here to assist you with all your legal needs. 

Our friendly and team-driven approach underpins our firm’s values, recognising the importance of putting people first and allows us to connect and nurture professional relationships with new and existing clients within our local community of Gore, as well as throughout New Zealand and extending overseas.

Region: Southland

Phone: 03 209 0030

Welsh McCarthy

Welsh McCarthy practises in Hawera, South Taranaki. Predominant industries in the South Taranaki district are dairy farming, oil and gas. The South Taranaki area also has the largest one-site multi product milk processing facility in the world

We deal with company and commercial transactions, commercial and family law, farm and residential sales and purchases, estate planning and family and charitable trusts. A large part of the firm also deals in the area of family law.

Region: Taranaki

Phone: 06 278 5039

Lamb Bain Laubscher

The firm advises clients on a regional and national level, regularly meeting with clients throughout New Zealand at their places of business or residence. Building on the experience of its members, the firm has forged a successful relationship with its clients, and in some cases act for and advise three generations of the same family.

The firm seeks to create innovative and advantageous solutions based on their knowledge and experience and a keen appreciation of each clients individual circumstances.

The firm has modern internal systems and an infrastructure which enables direct and efficient means of service to clients. There is an emphasis on building strong relationships with our clients and providing a personalised service.

Region: Waikato

Phone: 07 878 1011

Gawith Burridge

Gawith Burridge traces its history back to 1875 when Charles Gawith first set up his practice. Since then the firm has undergone many changes, including a merger between Gawith & Co and Burridge & Co in 1998 to form our current practice.

Our firm draws on the breadth of expertise available from some of the region’s most senior legal practitioners, as well as the skills of those who have moved here from larger corporate environments.

As a result, we provide clients with a comprehensive range of legal services right here in the Wairarapa. We can provide you with legal assistance whether you are an individual or a company, with everything from setting up a Will to selling your farming business. 

Region: Wairarapa

Phone: 06 370 0000

Gillespie Young Watson

We specialise in Property, Commercial and Trust Law. When it comes to law firm size we are bigger than smaller and smaller than big. By limiting the work we do to our specialist areas, we like to think we bring together the best of big firm skill sets with the personal care, attention and relationships of small firms.

We expect our clients to receive clear, practical and timely advice. We place a premium on accessibility and convenience to our clients. We value and appreciate all of our clients and want to do the best possible job for each of them. When we close a file we want the client to feel they have received exceptional advice, service and value.

Region: Wellington

Phone: 04 569 3997

Hannan & Seddon

The Law Firm of Hannan & Seddon dates back to September 1867.

The firm's offices were in Werita Street from 1867 until 1982 when the firm moved to Tarapuhi Street and then to its current spacious premises at 61 Guinness Street in 1998.

The name Hannan comes from Mr Michael Hannan whose son John Hannan (Jack) joined the firm in 1908. Jack Hannan remained in partnership until he passed away in 1974 at the age of 90!

The name Seddon comes from Mr T E Y Seddon (son of Premier Richard John Seddon from Kumara) who joined the firm in the 1920's. The other prominent Solicitor at Hannan & Seddon was Cyril McGinley who joined the firm in the late 1920’s and retired as a Consultant in 1997 aged 87.

Currently we have two Partners within our firm. Tony Sullivan who has been with us for 29 years and Colin Smith, 26 years. The firm also has two long serving Legal Executives Elaine Knowles and Beverley Walsh.  

Region: West Coast

Phone: 03 768 4169

All the information published on this website, or in any article herein is true and accurate to the best of the authors' knowledge. Information on this site should not be a substitute for legal advice. No liability is assumed by NZ LAW Limited, or individual NZ LAW member firms for losses suffered by any person or organisation relying directly or indirectly on information published on this site. Views expressed in any article are the views of the authors individually and do not necessarily reflect the view of NZ LAW or their member firms. Information appearing on this site may only be reproduced with prior approval from NZ LAW Limited Head Office, and credit being given to the source. © NZ LAW Limited