The year starts with a reviewed ADLSi/REINZ Ninth Edition 2012 (3) form of agreement for sale and purchase of real estate.  The important changes to note are:

 

  • Tax statement clauses are added to ensure vendors and purchasers comply with rules introduced 1 October 2015 and requiring tax statements to be lodged at LINZ prior to settlement. These clauses had been added to most agreements since 1 October 2015 and so far have not caused difficulty.

 

  • The vendor now warrants that all chattels “and all plant, equipment, systems or devices which provide any services or amenities to the property, including, without limitation, security, heating, cooling or air-conditioning” are delivered in reasonable working order. Vendors should ensure this warranty is correct and amend it or delete it if not.

 

  • The purchaser expressly acknowledges that they have been provided with a pre-contract disclosure statement where a unit title property is being purchased. If the purchaser has not had this disclosure statement then this needs to be deleted.

 

  • Vendor’s selling unit titles warrant that the information in the pre-contract disclosure statement is complete and correct. The Unit Titles Act 2010 includes similar provisons already, but a breach would now be an express breach of the agreement.

 

  • If the OIA condition “yes/no” box is not completed this is now a warranty from the purchaser that OIA consent is not required. Where there is a foreign purchaser this should always be expressly considered.

 

  • The agent is permitted to provide statistical data relating to the sale to REINZ. It’s not clear what “statistical data” is but we would expect that means personal information should not be provided.

 

  • If a claim for compensation is being made by a purchaser notice must be served on the vendor on or before the last working day prior to the settlement date (as oppose to the date of settlement). If purchasers have concerns they need to be raising these with their lawyers early and the pre-settlement inspection should be completed in sufficient time for advice to be obtained, if needed.

 

  • The ‘Mondayised’ Waitangi Day and Anzac Day are not Working Days for the purposes of the agreement. This is a tidy up that makes clear these Mondays are not to be counted when calculating e.g. notice periods under the agreement.

 

  • In the LIM condition the period 24 December to 15 January (inclusive) is excluded when calculating the 15 Working Days the purchaser has to approve the LIM. When signing agreements up around the end of the year consider the timing carefully!

 

  • On settlement the vendor must make available keys to all exterior doors locked by key and electronic door openers to all doors opened electronically. This is a tidy up but vendors should advise us if keys or electronic door openers are not going to be available.

 

  • If the purchaser defaults on settlement and the vendor claims additional expenses and damages (in addition to penalty interest) and such amount cannot be agreed by the parties then an interim amount may be determined by an experienced property lawyer appointed by the parties and paid to a stakeholder. If the lawyer to be appointed or stakeholder cannot be agreed then the president of the New Zealand Law Society can be asked to nominate these.  This matches similar provisions when the vendor is in default and compensation cannot be agreed.

 

By Denise Marsden