Entering the real estate market, whether as a buyer or seller, involves navigating a host of legal documents and contracts.
At Hayman Lawyers, we are experts in New Zealand real estate law and are here to help you understand the complexities of real estate contracts.
A real estate contract, also known as an Agreement for Sale and Purchase, is a legally binding document outlining the terms and conditions agreed upon by the buyer and seller. Here are key components you should understand:
- Parties Involved: The contract should accurately name the buyer and seller. Any inaccuracies could lead to complications or disputes.
- Property Description: The property’s legal description and address should be detailed. It’s important to ensure that the details match the title of the property.
- Purchase Price: The agreed-upon price for the property must be clearly stated. Any deposit to be paid should also be included, as well as the due date for balance payment.
- Settlement Date: This is the date when the ownership of the property is transferred from the seller to the buyer, usually when the balance of the purchase price is paid.
- Conditions: These are specific terms that must be met before the contract becomes unconditional. Common conditions include finance approval, satisfactory property inspection, or obtaining a LIM (Land Information Memorandum) report.
- Chattels: These are moveable items included in the sale, such as appliances, curtains, or fixed floor coverings. The contract should specify which chattels are included.
It’s crucial to fully understand and agree to all terms before signing a real estate contract. While a written contract can be legally binding once signed by both parties, in NZ, the agreement becomes unconditional only when both parties’ solicitors confirm the conditions are met.
At Hayman Lawyers, we believe in empowering our clients with knowledge to make informed decisions. Our experienced team can guide you through the contract review, help you understand your obligations and rights, ensure that all conditions protect your interests, and navigate any unexpected issues.