New Form of Agreement for Sale and Purchase of Real Estate
A New edition of the standard Agreement for Sale and Purchase of Real Estate has now been produced by the Auckland District Law Society and the Real Estate Institute of New Zealand Incorporated.
The most significant change to the Agreement is contained in clause 7 which deals with claims for compensation by a Purchaser when there has been damage, or other issues, which reduce the value and/or benefit of the property to the Purchaser.
A recent case, Property Ventures V Regalwood Holdings, created some confusion as to whether a Purchaser could refuse to settle the transaction unless, prior to settlement, the parties had agreed to an appropriate level of compensation or at least a retention of the sale proceeds to be held in trust pending the compensation issues being resolved.
Clause 7 now makes it clear a Purchaser can insist an appropriate proportion of the purchase price be deducted at settlement and paid to a stakeholder who shall hold the sum in trust pending resolution of the issues. Clause 7 also provides a code as to how the parties are to proceed if they cannot agree between themselves as to an appropriate amount of compensation or who is to hold the retention money.
The new edition of the Agreement for Sale and Purchase of Real Estate also contains a number of other additions and alterations.
We would of course be happy to answer any queries our clients may have in relation to the new form of the Agreement.
“Joy, we cannot thank you enough for your help with our purchase! You have been wonderful to deal with and so proactive (and patient with my numerous emails). We will be visiting NZ in April so will make sure we drop in to thank you in person.”
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“To Michael Robinson – I wanted to thank you and your colleagues for many years of excellent service to the Bank. You have an outstanding business that has proved to be one of the most reliable and ethical businesses that Collections have dealt with in the almost 9 years I was with the Bank.”
“I can't speak highly enough of Jenny. She got everything done in a timely manner and when my ex-husband threw a spanner in the works at the eleventh hour she got the required documentation to his lawyers and settlement back on track.”
“John is very easy to talk to, he never makes you feel dumb, and never makes you feel like you are wasting his time for asking questions. He explains everything very clearly, every time. John's support staff are also very efficient and so easy to deal with. No detail is missed when dealing with them. My husband and I are fans of them all :)”