Buying a house is one of the major milestones in many people’s lives, right up there with getting married, having a baby, and retiring. Signing on the dotted line of a Sale and Purchase Agreement is a momentous occasion for most people. 

The Auckland District Law Society and Real Estate Institute of New Zealand has just released a revised version of the standard Sale and Purchase Agreement which is used for the vast majority of property transactions in New Zealand. 

The main changes are as follows:

• the time allowed to obtain a building report has been extended from 10 working days to 15 working days.

• A new optional condition has been added to enable a purchaser to obtain a toxicology report to assess if the property is contaminated by meth or other drugs. 

• If the parties aren’t able to agree on the amount the purchaser has to pay the vendor for interest for late settlement, and also any additional expenses or damages incurred by the vendor, then either of them can refer the dispute to the new disputes procedure.

• If the purchaser is able to settle on the due date, but the vendor can’t, then the purchaser can claim either compensation for reasonable costs incurred for temporary accommodation and storage of chattels, or interest for late settlement.

• All council rates must be paid by the vendor prior to settlement. 

• A purchaser will no longer be able to use the finance clause as an excuse to cancel the agreement because the purchaser has had a change of mind. 

None of the amendments is likely to change that feeling when you sign a Sale and Purchase Agreement and get the keys to your new house. Let’s raise a glass to that!

Feedback, comments and questions are always welcomed – please feel free to e-mail me on [email protected]

T: 03 443 0900

W: www.aspiringlaw.co.nz

Mike Toepfer is a Director of Aspiring Law.

Please remember, this information is designed as a general guide, and should not replace specific legal advice on a particular issue.