The
National Property Conveyancing Company
for New Zealand
Essentials of an Agreement for Sale and Purchase
The Agreement for Sale and Purchase whether by Private Treaty or prepared by a Real Estate Agent forms a binding Contractual obligation between a Vendor and Purchaser.
The Purchaser will present the offer with conditions, and the Vendor may either accept the offer as is or counter offer the price, and terms of the Agreement.
Prior to final negotiations being completed and prior to signing you should have the Agreement checked to ensure the Agreement reflects your requirements and you understand your obligations.
Ideally the following should be clearly defined in the Agreement, the more specific,the better the understanding between the parties.
Full names of Vendors as described on the Title.
Full names of Purchasers as per legal identification – such as a Driver’s License or Passport, or as per the entity in which the land is to be held.
Address of the property.
Complete legal description as per the Title search.
Purchase price.
Amount of deposit – how much is to be paid, when it is to be paid and who it is payable to.
GST – is it applicable. We suggest you obtain the Advice of your accountant around any GST requirements to a transaction.
Rate of penalty interest for late settlement.
Possession and settlement dates.
Finance condition.
Land Information Memorandum condition – if applicable.
Tenancy – if any.
Further terms of Sale as required.
What types of further conditions can be inserted?
Builders Reports.
Valuations.
Inspection of the Local Council property file.
Subject sale of another property.
Approval of Title. What type of Title?
Good working order – in relation to chattels, fixtures and fittings.
Security Alarm – the wording around this condition will depend if the alarm is monitored or not.
Due Diligence.
Pool/Spa.
Out clause – this clause will be used by the Vendor which allows them to receive other offers whilst the property is under Contract.
Chattels listed.
Any other conditions applicable to the transaction.
Where there are matters to be attended to there are key questions to be answered?
What needs to be done?
Who’s going to do it?
Who is going to pay for it?
When does it need to be done?
What is going to happen if something is discovered?
Who is going to pay to fix it?
Upon signing of the Agreement should any alterations or changes have been made, they must be initialled by all parties to Contact.
These are just to name a few. The wording around conditions must be correct to ensure performance.
Have you ever read the fine print contained within the Agreement to better inform yourself? If you have any questions regarding these conditions do not hesitate to ask.
Remember Research and Professional advice is the key to ensure your interests are safe guarded.
