Lets break it down in bit by bit:
Recently the Real Estate Institute of New Zealand released a plain English version of a new Agreement for Sale and Purchase. This Agreement has not been received well by the Real Estate Industry. It would appear the majority of Agents will stick with the Auckland District Law Society Eighth edition (2006) (2).
The transaction begins with the negotiations between the Vendor and Purchaser, when both parties are satsified the Agreement for Sale and Purchase is completed with the terms and conditions which require satisfaction prior to the Agreement being confirmed unconditional. The Agreement for Sale and Purchase represents the contractual obligations of the parties.
Front Page:
The date of the Agreement should always be the date at which the last party signed.
Vendor; The Vendor’s names as shown on the Certificate of Title.
Purchaser; The names of all person who at the end of the transaction will be registered on the Title. To take it further the names should be as described on Driver’s License or Passports.
Address; The address for which the transaction is in relation too.
Estate and legal description; This should be exactly as described as per the Certificate of Title. Delete the estates which are not applicable.
Purchase price; The price will be inclusive of GST (if any) unless the appropriate deletion is made.
Deposit; The amount of the deposit is often 10%, note the parties can agree to a different amount or even no deposit at all.
Payment of purchase price; There are two options, one which must be deleted. Cleared funds is the first option, this simply means cash, bank cheque or electronic transfer. The settlement date needs to be inserted and the second option deleted. The second option would be used in payment was to be made by instalments or if vendors finance was involved.
Possession date; This is the date the Purchaser will take possession. This is generally the same as the settlement date.
Stay posted for further information around the Agreement for Sale and Purchase. Regards Kim
