Understanding the sale and purchase agreement when selling

A sale and purchase agreement is a legally binding contract between you and the buyer.

Sale and purchase agreement terms and conditions
  • 25 May, 2018
  • real estate, Sale and Purchase Agreement

It sets out all the details, terms and conditions of the sale. This includes things such as the price, any chattels being sold with the property, whether the buyer needs to sell another property first and the settlement date.

A sale and purchase agreement provides certainty to you and the buyer about what will happen when.

Summary of important things to know:

  • You must sign a written sale and purchase agreement when you sell a property.
  • Always check your sale and purchase agreement with a lawyer or conveyancer before signing. You need to read and understand the agreement before you sign it.
  • You should always get legal advice before you sign the agreement and throughout the selling process.
  • You can negotiate the conditions in a sale and purchase agreement.
  • A sale and purchase agreement becomes unconditional when all the conditions are met.
  • The agent helps you and the buyer to include the conditions you both want. Even though the agent works for you, they also have to deal fairly and honestly with the buyer. They can’t withhold any information, and they must tell the buyer about any known defects with the property.
  • If your agent or anyone related to them wants to buy your property, they must get your written consent to do this. They must also give you an independent registered valuation of your property.
  • Your agent will probably use the agreement for sale and purchase approved by the Auckland District Law Society and the Real Estate Institute of New Zealand.
  • Before you sign a sale and purchase agreement, the agent must give you a copy of the REA’s New Zealand Residential Property Sale and Purchase Agreement Guide. They must also ask you to confirm in writing that you’ve received it.
  • You can download the New Zealand Residential Property Sale and Purchase Agreement Guide here

For more information on understanding the sale and purchase agreement when selling, and dealing with offers visit https://www.settled.govt.nz/sale-and-purchase-agreement/   

LJ Hooker NZ

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