Purchasing a property is a significant decision, and completing an Agreement for Sale and Purchase is a crucial step in the process. To ensure a smooth transaction, you must carefully consider several factors when finalizing this agreement. In this guide, we’ll outline key considerations to help you navigate this essential document.

1. KiwiSaver Funds

If you plan to use KiwiSaver funds for either your deposit or settlement, ensure that the deposit clause in the Agreement clearly states that these funds will be held in the vendor’s solicitor’s trust account until settlement. This step ensures compliance with KiwiSaver provider requirements.

2. Settlement Date

Selecting a suitable settlement date is vital. It must allow ample time for the preparation and signing of mortgage and transfer documents. If you’re applying for KiwiSaver, Kāinga Ora grants, or loans, make sure the settlement date aligns with the 15 working day requirement specified by these providers.

3. Confirm Your Finance Arrangements

If you have secured pre-approval for a mortgage, ensure it is unconditional approval. If your pre-approval is conditional, insert a robust “subject to finance” condition in the Agreement, especially if you’re uncertain about obtaining approval for the specific property you intend to purchase. Additionally, verify that you have the required deposit amount, which is usually 10% of the purchase price, readily available. If not, amend the condition accordingly.

4. Include Relevant Conditions

Consider what conditions you want to include in the Agreement. Common conditions to include are:

• Land Information Memorandum (LIM) and builder’s report conditions.
• Clauses for solicitor’s or title approval.
• Conditions that give you ample time to satisfy LIM, builder’s report, and other necessary investigations.

Conduct a thorough investigation of the property you’re purchasing, checking for structural integrity, weather-tightness, and the presence of essential permits and consents. Ensure any building work is Council-approved and has the required Code Compliance Certificate (CCC). Disclose any issues, like a missing CCC, to your insurer and bank, if applicable.

Seek Legal Advice

The Agreement for Sale and Purchase is a critical document in property transactions, and improperly drafted agreements can lead to costly issues and complications. To safeguard your interests and ensure a smooth property purchase, it is highly recommended to seek experienced legal advice before signing the agreement. Legal professionals can provide valuable guidance, helping you avoid potential pitfalls and navigate the process effectively.