Buying a Property? Don’t Skip the Fine Print

When you buy a property in New Zealand through a real estate agent, you’ll sign an Agreement for Sale and Purchase. At first glance, it seems straightforward, covering details such as the purchase price, settlement date, and any conditions like finance, a LIM report, or a building inspection.

However, many buyers overlook one of the most important parts of the agreement: the General Terms.

The General Terms set out the legal rights and responsibilities of both the buyer and the seller. They cover matters such as when payments must be made, when possession is given, what happens if either party defaults, how disputes are handled, and what happens if issues arise with the property’s title or ownership. These clauses are legally binding and can have a significant impact on your purchase.

One clause every buyer should understand is Clause 6, which deals with title, boundaries, and requisitions. This clause generally gives the purchaser 10 working days from the date of the agreement to have their lawyer investigate the property’s title. Your lawyer will check for issues such as boundary discrepancies, easements, covenants, shared driveways, or other legal matters that could affect ownership or your future use of the property.

This review is an important legal safeguard. If a significant issue is discovered, the agreement may provide options to resolve the problem or, in some circumstances, allow the purchaser to cancel the agreement.

A common mistake buyers make is focusing only on the purchase price and settlement date while overlooking the General Terms. In reality, these clauses provide many of the legal protections that help ensure a smooth transaction. Before signing, it’s always worth asking your lawyer or real estate agent to explain any clauses you don’t fully understand.

At Harcourts Candice Team, we’ve reviewed thousands of sale and purchase agreements and helped buyers identify potential issues before they became costly problems. We know which clauses are most commonly overlooked and can help you understand how they may affect your purchase.

Whether you’re preparing to sign your first agreement or reviewing one that’s already been signed, we’re here to help you make informed decisions and buy with confidence.