Auckland Property Law news

Selling a House in New Zealand: FAQs | Conveyancing Shop Lawyers

Mon, 07 Sep 2026 20:17:53 GMT

Selling Your House in New Zealand: Frequently Asked Questions

Selling your home can seem straightforward. Put the house on the market, find a buyer, sign the agreement and settle. But there is quite a bit happening behind the scenes, and getting the legal details right can make the process much smoother. Here are some of the questions Thada Chapman has been asked over the last 20 years leading Conveyancing Shop Lawyers:

Do I need a lawyer when selling my house?

Yes. Your lawyer or conveyancer plays an important role in the sale, from reviewing the sale and purchase agreement through to settlement. Your lawyer can advise you about the agreement, check the property's title, deal with the buyer's lawyer, arrange the transfer of ownership and make sure any mortgage or other interests are dealt with at settlement. It is a good idea to talk to your lawyer before your property goes on the market , rather than waiting until you have a signed agreement.

Do I need a lawyer before I sign a sale and purchase agreement?

Absolutely.

A sale and purchase agreement is a legally binding contract. Once you sign it, you may be committed to the sale. Your lawyer can review the agreement before you sign, explain the conditions, identify anything unusual and make sure it reflects what you have agreed with the buyer. It is much easier to sort out a problem before you sign than after.

What happens when I accept an offer on my house?

Once both you and the buyer have signed the sale and purchase agreement and the agreement is unconditional, you are legally committed to the sale, subject to the terms of the agreement.

There may be conditions that need to be satisfied before the agreement becomes unconditional, such as finance or a building report.

Your lawyer will work through the conditions and make sure everything required from you is dealt with before settlement.

How much deposit does the buyer pay?

The deposit is usually around 10% of the purchase price, although the amount and when it is payable will depend on the agreement. If a real estate agent is involved, the deposit is generally paid to the agent's trust account. The agent may deduct their commission from the deposit, with the balance paid to you in accordance with the agreement. If it a private sale with no real estate agent the payment of deposit is handled by the lawyers. Your lawyer can explain how the deposit is being dealt with in your particular sale.

Do I have to pay tax when I sell my house?

Not necessarily.

If you are selling your main home, the sale will generally not be taxable under the bright-line test if the requirements for the main home exclusion are met. However, other property tax rules can apply. For example, the bright-line test currently looks at whether a residential property is sold within two years of the relevant bright-line start date. There are also rules that can apply if a property was purchased with an intention to resell it or if there is a pattern of buying and selling property. If you are unsure whether tax could apply to your sale, talk to your accountant before you sign the agreement.

What if I have a mortgage on the property?

That's completely normal.

Your lawyer will work with your bank or lender to arrange for the mortgage to be repaid from the settlement proceeds and for the mortgage to be removed from the property's title. It is important to give your lawyer details of all lending secured against the property, including any additional lending you may have forgotten about over the years.

What if I have a tenant living in the property?

Selling a property that is tenanted can involve additional considerations.

Your lawyer can advise you about the tenancy, the terms of your sale agreement and when vacant possession needs to be provided, if that is part of the agreement.

Don't simply assume that selling the property automatically ends the tenancy. Make sure you understand your obligations before making promises to a buyer.

What if there are problems with the house or unconsented work?

This is something you should discuss with your lawyer before putting the property on the market.

Perhaps you built a deck years ago, converted the garage or carried out renovations without obtaining all the necessary consents. Don't wait for the buyer's lawyer to discover it. Your lawyer can advise you on the issue and whether further information or documentation is required. Being upfront early can help avoid delays and unpleasant surprises later.

What happens on settlement day?

Settlement is the day the purchase price is paid and ownership of the property is transferred to the buyer.

Your lawyer will work with the buyer's lawyer and your bank to complete the settlement, arrange repayment of your mortgage and transfer the title.Once settlement has been completed, the buyer can generally take possession in accordance with the terms of the agreement.

When do I get the money from the sale?

The balance of the sale proceeds is generally paid to you after settlement has been completed and any amounts that need to be paid out, such as your mortgage, have been dealt with. Your lawyer will provide a settlement statement showing how the money has been distributed.

What happens if the buyer doesn't settle?

If a buyer fails to settle on the agreed settlement date, the situation can become more complicated.

The sale and purchase agreement contains provisions dealing with default, including potential interest, compensation and other remedies. Don't try to sort it out yourself or agree to changes with the buyer without talking to your lawyer first.

Should I talk to my lawyer before putting my house on the market?

Yes.

This is perhaps the biggest takeaway.

Don't wait until you've found a buyer to introduce your lawyer.

Speaking to your lawyer early gives you an opportunity to check the title, discuss any issues with the property, consider your ownership structure, understand the likely process and make sure you are ready to sell. It also means that when the agent calls to say, "We've got an offer!", you're ready to deal with it.

Selling your home? Get the legal side sorted early.

Selling a property is a significant financial and legal transaction. While your real estate agent will take care of marketing and negotiating the sale, your lawyer is there to protect your legal interests and guide you through the process.

At Conveyancing Shop Lawyers , we can help you understand the legal side of selling your property, from reviewing the agreement through to settlement.

Thinking about selling? Talk to us before you sign.

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Written by Thada Chapman, Director

Meet Dave who thought he could buy a house without a lawyer!

Sun, 06 Sep 2026 08:54:34 GMT

He Thought He Didn’t Need a Lawyer...

Meet Dave.

Dave had finally found his dream home. Great location, decent price, sunny living room and, according to Dave, “loads of potential.”

The real estate agent handed him the sale and purchase agreement. “You should get your lawyer to look over this before you sign,” she said.

Dave smiled confidently. “Nah, it’s all pretty standard, isn’t it?” And with that, Dave signed.

Fast forward a few days and Dave called his lawyer. “I’ve bought a house!”

“That’s great,” said the lawyer. “Send me the agreement.”

Dave did.

There was a long pause.

“Dave... have you actually read this?”

“Not exactly. But it’s a house. How complicated can it be?”

As it turned out, quite complicated.

Problem #1: The settlement date

Dave had assumed settlement would be whenever he was ready to move in. Unfortunately, the contract had a specific settlement date. And it was considerably sooner than Dave had expected. His bank wasn't quite ready. His moving company wasn't booked. And his current rental agreement had a few more weeks to run.

Suddenly Dave was juggling two sets of keys and wondering whether he could make afford the rent and the moortage.

Problem #2: The conditions

Dave had signed an unconditional agreement. He had intended to get a building inspection, but thought he'd "sort that out afterwards." The building inspector found a few things that Dave would have preferred to know about before signing. Nothing quite says "dream home" like discovering a roof leak after you've legally committed to buying it.

Problem #3: The title

The property title contained an easement. Dave had no idea what an easement was. His lawyer explained that part of the property was subject to rights allowing someone else to use the land for a particular purpose.

“Is that bad?”

“Not necessarily.”

“Is it something I would have liked to know about before signing?”

“Yes.”

“Right.”

Problem #4: The chattels

Dave thought the outdoor spa was included. The vendor thought the outdoor spa was very much not included. Unfortunately, Dave's assumption wasn't written into the agreement. There was now a spirited discussion about whether a spa could be considered a "fixture", followed by Dave Googling the price of second-hand spas.

Problem #5: The LIM and council information

Dave had seen the beautiful renovated kitchen and assumed everything was above board.

His lawyer suggested checking the council information. There were alterations to the property that needed further investigation. Dave suddenly wished he had spent a little less time imagining where the sofa would go and a little more time checking what had actually been consented.

The moral of Dave's story?

Dave's biggest mistake wasn't buying the house. It was signing the contract before getting legal advice .

His lawyer could have helped him understand the agreement, identify potential issues and make sure appropriate conditions were included before he became legally committed.

Fortunately, Dave's lawyer was able to help him work through the issues that arose.

But Dave learned an important lesson.

A lawyer is much more useful before you sign than after you have signed.

Buying a house is exciting. It is also one of the biggest financial commitments most people will ever make.

So before you fall in love with the house, the kitchen, the view or the spa...

Fall in love with the idea of getting your lawyer to check the contract first.

Your future self may thank you.

This is a humorous fictional story written by Sirpa Gunn to illustrate the importance of seeking independent legal advice before signing a property sale and purchase agreement. While the situations are fictional, the message is serious: always talk to your lawyer before you sign.

When Last Did You Review Your Trust?

Sun, 06 Sep 2026 07:56:17 GMT

You Set Up Your Trust When You Bought Your Home. When Did You Last Review It?

For many New Zealanders, setting up a family trust was simply part of buying a home. The lawyers prepared the documents, the property was transferred into the trust, everyone signed where they needed to, and life moved on. Years later, the trust may still own the family home or other assets, but when was the last time you actually looked at how your trust is operating? A trust is not something that should simply sit in a filing cabinet and be forgotten. Trustees have ongoing responsibilities, and those responsibilities continue for as long as the trust exists.

Being a trustee comes with responsibilities

If you are a trustee, you have legal duties to the beneficiaries of the trust. This includes acting in accordance with the terms of the trust, acting honestly and in good faith, taking reasonable care when making decisions, and keeping proper records. Trustees should also regularly review the trust's affairs and consider whether its assets, liabilities and arrangements are still appropriate. Good record keeping is particularly important. Trustees should keep accurate records of trust decisions, meetings, financial information, changes to trustees or beneficiaries, and important documents relating to the trust. It is easy to assume that because nothing has changed, there is nothing to do. But circumstances can change significantly over the years. Children grow up, relationships change, trustees may move overseas or become unable to act, assets are bought or sold, and family circumstances evolve.

When did you last review your trust?

Think back. When did you last sit down and review your trust documents? Do you know exactly who the trustees are? Are the contact details for trustees and beneficiaries up to date? Do you know what assets the trust owns? Are the trust's records complete and current? Have there been any significant changes in your family or financial circumstances that should be considered? If the answer to some of these questions is "I'm not sure", it may be time for a review. A trust review does not necessarily mean that anything needs to change. It is about making sure you understand your obligations as a trustee and that the trust is being properly administered.

Don't wait until you need it

Many people only think about their trust when they are selling a property, buying another asset, dealing with an estate or facing a significant change in their family circumstances. By then, discovering that records are missing or that the trust arrangements have not been properly maintained can create unnecessary complications. A periodic review can help identify issues early and give you confidence that your trust is being properly looked after.

When was the last time you reviewed your trust? If the answer is "I can't remember", that may be a good reason to talk to your lawyer and arrange a trust review.

About the Author: Thada Chapman is a Director and Senior Lawyer at Conveyancing Shop Lawyers. Admitted to practise in New Zealand in 1996, Thada is also qualified to practise in South Africa and California, where she passed the California Bar examination on her first attempt. She has extensive experience across a broad range of legal matters, with particular expertise in property law, buying and selling businesses, and franchising. Thada takes a practical, commercially focused approach to helping clients navigate complex legal matters and transactions.

Is your will up to date?

Sun, 26 Jul 2026 08:14:41 GMT

Don’t Put Off Making a Will

None of us particularly likes to think about what happens after we’re gone. It is one of those jobs that is easy to put off because there always seems to be something more immediate to deal with. But making a Will is one of the most important things you can do for the people you leave behind.

Your Will sets out what you want to happen to your assets and who you want to deal with your estate. It can provide clear instructions for your family and help avoid uncertainty, disputes and unnecessary stress at an already difficult time.

What happens if you don’t have a Will?

If you die without a Will, you are said to have died intestate . Your estate is then distributed according to the rules set out in New Zealand law, rather than according to your wishes. And your spouse or partner does not necessarily simply receive everything. For example, where there is a surviving spouse or partner and children, the estate is divided according to the statutory rules, with the spouse or partner receiving specified property and a prescribed amount, while the children may also be entitled to a share of the estate. The outcome can also be different depending on your family circumstances. This may be very different from what you would have wanted.

There can also be additional steps for your family to take. Without a Will naming an executor, someone will generally need to apply to the High Court for letters of administration so that they can legally deal with the estate. An administrator then has responsibility for dealing with the deceased's assets and debts and distributing the estate according to the law. That means more paperwork and potentially more time and expense for your loved ones at a time when they are already dealing with grief.

What about your home?

Your home is often your biggest asset, so it is particularly important to understand how it is owned.

For example, property owned as joint tenants will generally pass to the surviving joint tenant by survivorship, rather than under your Will. Property owned as tenants in common is treated differently, and your share forms part of your estate. So even if you think, "My partner will get the house anyway", it is worth checking exactly how the property is owned and whether that reflects what you intend.

Your Will should change as your life changes

Making a Will is not necessarily a once-and-done exercise. Marriage, separation, having children, buying or selling property, changes in your financial circumstances, the death of a beneficiary or executor, or changes to your family structure can all be reasons to review your Will.It is worth taking the time to make sure your Will still reflects your wishes and that the people you have appointed are still the right people to carry them out.

Don't put it off.

If you don't have a Will, or yours hasn't been reviewed for years, it might be time to talk to us. A little planning now can make things much easier for the people you leave behind.

Its easy to buy a house they said!

Mon, 11 May 2026 08:28:49 GMT

“It’s Easy to Buy a House,” They Said…

“You don’t need to talk to a lawyer before you sign.” They said

We hear versions of this all the time. And while buying a house may look simple from the outside, there is a lot more to it than finding a property, agreeing on a price and signing on the dotted line.

For most people, buying a home will be one of the biggest financial investments they make in their lifetime. That is a pretty good reason to get independent legal advice before you commit yourself to the deal. n New Zealand, a sale and purchase agreement is a legally binding contract. Once you have signed it, you may have limited options to change the agreement or walk away. Government guidance is clear: buyers should have their lawyer or conveyancer review the agreement before signing.

So, what does your lawyer actually do?

Your lawyer is not there simply to process the paperwork at the end. Ideally, they should be involved before you sign anything . They can review the sale and purchase agreement and explain exactly what you are agreeing to. They can identify unusual clauses, negotiate conditions and make sure the agreement reflects what you think you are buying. They can also check the property's title and look for things such as easements, covenants, caveats or other interests that could affect the property. Depending on the property, they may also advise you about a LIM, council information, building reports, unit title information and other due diligence. These are things you want to discover before you are legally committed, not afterwards.

“But the agent said it was standard”

It may be a standard agreement, but that doesn't mean every clause is right for your particular circumstances. The real estate agent is an important part of the buying process, but they are not your independent legal adviser. Your lawyer works for you and can explain the legal implications of the agreement and the conditions you are considering. Something as simple as the wording of a condition can make a significant difference to your rights. For example, a finance, building report or LIM condition needs to be worded appropriately for your circumstances.

Don't leave contcting your lawyer until after you have singed the contract

One of the biggest mistakes a buyer can make is contacting their lawyer only after they have signed the agreement. By that stage, the lawyer's role may be largely about helping you fulfil the contract rather than helping you decide whether the contract is right for you. Getting advice early gives you options. It gives you an opportunity to ask questions, carry out appropriate due diligence and negotiate terms before you are committed.

It can also prevent relatively small issues from becoming expensive problems later. The New Zealand Law Society notes that getting legal advice early can help avoid stress, cost and frustration, and recommends speaking to your lawyer before signing the agreement.

Buying a house is exciting. Make sure it is the right house for you.

It is easy to get caught up in the excitement of finding the one. You may have spent months looking, finally found a property you love and don't want to risk losing it by slowing things down. But taking a little time to get proper advice could save you a lot of money, stress and heartache.

Before you sign, talk to your lawyer.

At Conveyancing Shop Lawyers, we can help you understand what you are signing, identify potential issues and guide you through the legal side of buying your home from the beginning right through to settlement.

Because buying a house might be exciting, but it is also a major legal and financial commitment. Make sure you understand exactly what you are signing up for.

Michelle Erasmus , Property Lawyer

GST and Property - Its more complicated than you think!

Sat, 28 Feb 2026 20:39:22 GMT

GST and Property: It’s More Complicated Than You Think

“It’s GST registered, so we can claim the GST back.” When buying a property, this can sound like a great idea. But what happens when you decide to sell?

You may discover that the GST you claimed when you bought the property can have consequences when you sell it.

GST and property transactions can be surprisingly complicated, so it is important to understand the implications before you sign an agreement.

Plus GST or GST inclusive?

You may see a property advertised as “$1 million plus GST, if any” or “$1 million inclusive of GST.”

These are very different things.

If GST applies, a $1 million price plus GST could mean a total purchase price of $1.15 million.

If the price is GST inclusive , the $1 million already includes the GST.

That difference can be significant, particularly when you are dealing with a high-value property.

“But I claimed the GST when I bought it…”

This is where things can get interesting. If you claimed GST when purchasing a property, you may have to account for GST when you sell it. There are exceptions, including transactions that are zero-rated , so don't assume that because you claimed GST on the way in, you simply pay it back on the way out.

What does zero-rated mean?

Zero-rated does not mean GST doesn't apply. It means the GST rate is 0%. Certain property transactions between GST-registered parties can be zero-rated if specific conditions are met. For example, the buyer generally needs to be GST registered and intend to use the property to make taxable supplies. And what happens if your buyer isn't GST registered ? The GST treatment may be completely different. This is why the GST status of the buyer, how the property is being used and the history of the property can all matter.

Before you sign, talk to your accountant

If you are buying or selling a property where GST may be involved, don't leave the GST question until settlement.

Before signing, ask your accountant:

Is GST payable on this transaction?
Is the price plus GST or GST inclusive?
Can I claim GST on the purchase?
What happens when I sell?
Could the sale be zero-rated?
What happens if the buyer isn't GST registered?

Getting the answer before you sign could save you a very expensive surprise later.

One last thing...

GST and property is not always as simple as “claim it when you buy, pay it when you sell.”

There are rules, exceptions and plenty of room for things to get complicated.

Don't make assumptions. Get advice before you sign.

This article is written by Sirpa Gunn for Conveyancing Shop Lawyers and is intended to open your eyes to the potential complexity of GST and property transactions. It is not accounting, tax or legal advice. GST treatment depends on the individual circumstances of each transaction. It is essential to discuss your circumstances with your accountant or tax adviser before entering into a sale and purchase agreement .

Property Co-ownership with Friends and Family

Tue, 23 Sep 2025 09:16:22 GMT

Buying Property with Friends and Family: What you need to agree first

For many people, buying a home on their own is becoming increasingly difficult. One option is to buy with someone else, whether that is a partner, sibling, parent, friend or another family member. Pooling your deposits and borrowing capacity can make buying a property possible when it might otherwise be out of reach. But co-owning a home is a very different arrangement from simply buying a house with a partner. Before you commit to the purchase, it is worth thinking carefully about what happens not only while everything is going well, but also if one person wants to sell, stops contributing to the mortgage, loses their job, wants to move out, or simply changes their mind about the arrangement. We have seen co-ownership work very well, but the arrangements that tend to cause problems are the ones where everyone starts out with the best of intentions and assumes they will work out the details later.

Decide how the property will be owned

The first decision is how you will own the property. In New Zealand, co-owners generally hold property either as joint tenants or tenants in common . With joint tenancy, the owners hold the property together and do not have individually defined shares. An important feature is the right of survivorship, meaning that when one joint tenant dies, their interest generally passes to the surviving owner or owners. Tenants in common is often more appropriate where people are contributing different amounts or want their individual interests in the property to be clearly defined. For example, three siblings might own a property in shares of 50%, 30% and 20%. If one of them dies, their share forms part of their estate rather than automatically passing to the other co-owners. There is no one ownership structure that is right for every situation. It depends on who is buying, how much each person is contributing and what everyone wants to happen to their share in the future.

Put the agreement in writing

This is probably the most important step.

If you are buying with friends or family, do not rely on an informal understanding that “we'll just work it out”. A properly drafted property sharing agreement can set out how the arrangement will operate and what happens if circumstances change.

The agreement might cover things such as:

how much each person is contributing to the deposit and purchase costs
the ownership shares
who is responsible for mortgage payments
how rates, insurance, repairs and maintenance will be paid
what happens if one owner pays more than their agreed share
who can live in the property
whether an owner can have a partner or flatmate move in
how major decisions about the property will be made
what happens if someone stops making their payments
how the property will be valued if one owner wants to leave
how one owner can buy out another
what happens if nobody wants to buy the other person out and the property needs to be sold.

The New Zealand Law Society's Property Law Section guidelines specifically recommend discussing a separate agreement where property is being purchased by two or more people as tenants in common, including what happens if one of the owners wants to sell their share.

Agree what happens if someone wants out

This is the conversation that can feel unnecessary when you are excited about buying your new home, but it is one of the most important. Suppose two friends buy a house together. Three years later, one gets married and wants to buy a property with their new partner. Or one owner needs to move overseas for work. Or the owners simply decide they no longer want to live together. What happens then?

If the agreement does not deal with this, you can end up trying to negotiate a solution at exactly the point when your interests are no longer aligned. Before you buy, agree on how an owner's share will be valued, whether the other owner gets the first opportunity to buy it, how long they have to arrange finance and what happens if they cannot do so. You should also consider what happens if neither party can afford to buy the other out and the property needs to be sold. These details are much easier to agree when everyone is getting along.

Think about the money beyond the deposit

It is easy to focus on the deposit and mortgage and forget about everything else that comes with owning a property. Rates, insurance, maintenance, urgent repairs and improvements can all become significant expenses. If one person wants to replace the kitchen while another thinks the existing kitchen is perfectly adequate, you need to know how that disagreement will be dealt with. It is also worth agreeing what happens if one owner cannot make their mortgage contribution. The bank is concerned with the loan and the obligations of the borrowers, not with whatever private arrangement the co-owners have between themselves. Your co-owner's financial problems can therefore become your problem too.

Think about what happens if circumstances change

Buying with a friend or family member can also become more complicated if one of you enters into a relationship, separates from a partner or dies. For example, if you buy a property with your sibling and later enter into a relationship, your own circumstances may change considerably. Depending on the situation, the Property (Relationships) Act 1976 can become relevant to property interests when a relationship ends. This is one reason why the legal ownership structure should not be treated as a formality. Estate planning is also worth considering. If you own property as tenants in common, your share forms part of your estate when you die. Your will should therefore be consistent with what you intend to happen to that share.

Do not overlook the tax implications

There is also a tax side to co-ownership that should be considered before you buy. New Zealand does not have a general capital gains tax, but profits from selling property can be taxable under the bright-line test or other land-sale rules. For residential property sold on or after 1 July 2024, the bright-line period is generally two years, although exclusions and other rules can apply. There are also specific rules where the ownership shares change. For example, if one co-owner later buys out another, the disposal of the departing owner's share may have tax consequences. Inland Revenue specifically notes that changes to the shares held by co-owners, or adding or removing a co-owner, can potentially come within the bright-line rules.

If you are buying an investment property rather than a home to live in, the tax position can be different again. It is worth getting appropriate tax advice before making assumptions about how a future sale will be treated.

Get advice before you sign

Co-owning a property with friends or family can be a good way of getting into the property market, but it is not something to enter into on a handshake. The important thing is to have the difficult conversations before you buy. Who owns what? Who pays what? Who gets to make decisions? What happens if someone wants out? What happens if someone cannot pay? What happens if the relationship between the owners changes? Getting these matters agreed and documented at the beginning can save a great deal of stress later. At Conveyancing Shop Lawyers, we regularly help clients buying property with other people and can advise on the appropriate ownership structure and the legal agreement between the co-owners. If you are considering buying with friends or family, talk to us before you sign the Sale and Purchase Agreement so that you understand the arrangement you are committing to.

This article provides general information only and is not a substitute for legal or tax advice. Every co-ownership arrangement is different, so you should obtain advice based on your own circumstances before entering into any agreeement.

Reviewed by Michelle Erasmus 7th September 2026

Can I cancel a Sale and Purchase Agreement?

Thu, 31 Jul 2025 00:27:49 GMT

Understanding your rights when buying or selling a home in New Zealand

Can I Cancel a Sale and Purchase Agreement?

We recently had someone come into our office with a Sale and Purchase Agreement they had signed to buy a property. A few days later, another house came on the market that they liked more — and they wanted to cancel the first agreement. Unfortunately, in New Zealand, it’s not that simple.

Once a Sale and Purchase Agreement is signed by both parties, it becomes legally binding . You can’t cancel just because you’ve changed your mind or found something better. You can only cancel if the agreement includes specific conditions that allow for it — and those conditions must be used properly and in good faith.

Let’s take a look at when cancellation is possible, and what options buyers and sellers have to protect themselves.

There’s No “Cooling-Off” Period in New Zealand

In some countries, residential property contracts come with a built-in “cooling-off period” — a short window (often a few days) where buyers can cancel the agreement for any reason.

New Zealand does not have a general cooling-off period. Once both parties sign the contract, it’s enforceable — unless there are conditions included that allow for cancellation.

When Can a Buyer Cancel?

Buyers can only cancel if one of the following applies:

1. Conditions Have Not Been Met

Most agreements include conditions that protect the buyer. These might include:

Finance – If the agreement is conditional on finance and the buyer can’t obtain a loan (despite making reasonable efforts), they may cancel.
Building Report – If a report uncovers major issues like structural damage or weather-tightness problems, the buyer may be able to walk away, depending on the wording of the clause.
LIM Report – If the LIM reveals significant issues like unconsented works or zoning restrictions, cancellation may be an option.
Solicitor’s Approval – Some agreements include a clause that allows the buyer’s lawyer to review and approve the contract. This must be used for legitimate legal concerns, not just a change of heart.
Due Diligence Clause – A general due diligence clause allows the buyer time to assess whether the property is right for them. This gives broader flexibility, but it must be negotiated and included in the agreement before signing.

2. The Vendor Breaches the Contract

Usually buyers cannot cancel if the vendor is in breach of the contract, rather settlement would be delayed or funds withheld. In some extreme cases there may be grounds for the purchaser to cancel for example if the Vendor is unable to give clear title or vacant possession. There is a process that needs to be followed with the purchasers lawyers issuing a settlement notice that provides a timeframe in which to settle failing which the Purchaser may cancel.

When Can a Seller Cancel?

Sellers also have limited cancellation rights, but there are some scenarios where they can cancel:

1. Buyer Fails to Meet Conditions

If the buyer doesn’t confirm their conditions (e.g. finance or LIM) by the deadline, the vendor may cancel the agreement.

2. Buyer Breaches the Contract

If the buyer fails to pay the deposit or doesn’t settle on the agreed date, the vendor can issue legal notice and ultimately cancel — though there is a formal process that must be followed.

3. Special Conditions Protecting the Seller

Just like buyers, sellers can also include custom conditions. For example:

Sale conditional on the vendor purchasing another property – We’ve seen vendors include a clause making their sale conditional upon their own purchase going unconditional. If that doesn’t happen, they can cancel their sale.
Retained occupancy or delayed settlement might also be negotiated depending on the seller’s situation.

You Can’t Cancel Just Because You Change Your Mind

Whether you’re buying or selling, you can’t cancel the agreement just because:

You found a better house or buyer
Your circumstances changed
You’re having second thoughts
You don’t like the price anymore

Once the agreement is unconditional, you’re legally obliged to follow through.

Get Legal Advice First — Not After

The best time to protect yourself is before signing the agreement. We can help you:

Draft conditions that suit your needs
Explain what you’re committing to
Review the agreement for potential risks

If you’ve already signed and are having doubts, don’t take any action before getting advice .

�� Need help? Contact the team at Conveyancing Shop Lawyers. We’ve helped thousands of Kiwis buy and sell with confidence — and avoid costly mistakes.

Vacant Possession when Buying and Selling

sirpa@soultree.co.nz (sirpa gunn) — Wed, 30 Jul 2025 05:41:40 GMT

When buying or selling residential property in New Zealand, one phrase you'll often come across is “vacant possession.” But what does it actually mean—and why does it matter so much?

Vacant possession is a core concept in conveyancing. In simple terms, it means the buyer receives the property free from occupants, tenants, the seller's personal belongings (other than chattels included in the agreement), and unwanted rubbish or debris. Where vacant possession is required under the Sale and Purchase Agreement, it is a legal obligation that must be met at settlement.

It is also one of the most common causes of problems we see in conveyancing. Picture it: it is 4pm on settlement day and the vendor still hasn't moved out. Or they are only half packed and the move is taking much longer than expected, while the purchaser is sitting outside with everything they own in a moving truck, waiting to get into their new home. What should have been a straightforward settlement can suddenly become very stressful for everyone involved.

Under the standard Auckland District Law Society (ADLS) Agreement for Sale and Purchase, vacant possession is generally required by 4pm on settlement day unless the property is being sold subject to an existing tenancy. This means the seller needs to have vacated the house, garage, sheds and other buildings, removed their personal belongings and cleared away any rubbish.

These are a few of the real-life situations we have come across. One issue we see is where a purchaser nominates a settlement date, the vendor agrees to it and signs the agreement, only for the vendor to realise afterwards that they have a tenant in the property and have not allowed enough time to give the required notice. The vendor can then find themselves caught between two legal obligations: they cannot give vacant possession to the purchaser on settlement day, but they also cannot simply force the tenant to leave without complying with the Residential Tenancies Act.

This is particularly important where the property is being sold with vacant possession. The rules around ending a tenancy depend on the type of tenancy and the circumstances, so vendors should check their position before agreeing to a settlement date. Giving notice to a tenant after the Sale and Purchase Agreement has already been signed can leave very little room to manoeuvre.

Another situation we regularly see is where a seller is also buying another property. If the timing of the two settlements is tight, there can be a domino effect. If the seller cannot get out of their existing home in time, they may not be able to provide vacant possession to their purchaser. That purchaser may then be unable to move into their new home, and the problem can continue down the chain.

Vacant possession is not limited to making sure the house is empty. We have also seen situations where sellers have left belongings in garages, sheds or other parts of the property, or left behind rubbish that the purchaser has then had to deal with. If these items are not included chattels or otherwise agreed to remain, they can become an issue at settlement.

What happens if vacant possession cannot be provided?

Failing to provide vacant possession on time can have serious consequences. Depending on the circumstances and the terms of the agreement, the purchaser may be able to delay settlement, retain money to cover an agreed issue, claim compensation for losses or serve a settlement notice.

A settlement notice generally gives the defaulting party 12 working days to remedy the default. If the vendor still cannot settle after that period, the purchaser may have further rights, including cancellation of the agreement and claims for damages, depending on the circumstances.

For a vendor, the best way to avoid these problems is to think about vacant possession before signing the agreement , particularly if the property is tenanted or the vendor is also purchasing another property. Make sure the proposed settlement date is realistic and that any tenancy arrangements allow sufficient time to comply with the law.

For purchasers, it is equally important to understand what you are actually buying and whether vacant possession is required. If you are relying on being able to move into the property immediately after settlement, this should be clear in the agreement.

Vacant possession might sound straightforward, but as we see regularly, getting everyone, everything and every tenancy out of a property by settlement day can be more complicated than it first appears.

Disclaimer: This article provides general information only and does not constitute legal advice. Property and tenancy law can depend on the particular circumstances and the wording of your agreement. If you are buying or selling a property, you should obtain legal advice specific to your situation.

Article Reviewed by Thada Chapman on 7th September 2026

Franchising Law in New Zealand: Why Specialist Legal Advice Matters

Tue, 29 Jul 2025 21:05:16 GMT

Thinking of buying or starting a franchise?

Franchise law is complex—and getting the right legal advice is key to long-term success. At Conveyancing Shop Lawyers, Director Thada Chapman specialises in franchising, from reviewing purchase agreements and commercial leases to setting up entire franchise systems and succession plans. With clients across industries like food, beauty, trades, and professional services, Thada brings practical expertise and fairness to every deal.

Franchising is one of the most common business models in New Zealand, offering the support of an established brand with the independence of running your own operation. But before signing any agreements or launching your franchise dream, it’s crucial to get expert legal advice—because when it comes to franchising, one size definitely does not fit all.

At Conveyancing Shop Lawyers, franchising law is a key area of expertise, especially for our Director, Thada Chapman . With years of experience setting up franchises, reviewing agreements, and guiding clients through every legal stage of their franchise journey, Thada brings a wealth of practical knowledge to the table.

Why Use a Specialist Franchise Lawyer?

Franchise agreements are detailed, binding contracts that govern how you run your business—often for many years. These documents can be heavily weighted in favour of the franchisor if not carefully reviewed.

Thada provides pre-purchase assistance for prospective franchisees, ensuring that all agreements are fair, clear, and aligned with your business goals before you commit. This includes:

Reviewing and advising on franchise agreements
Checking commercial leases and lease renewals
Ensuring that disclosure documents comply with relevant regulations

She also acts for franchisors, having helped set up entire franchise systems from scratch —drafting robust agreements that protect the brand while still offering fair terms to franchisees.

Succession Planning and Buy-Sell Agreements

Franchise businesses often involve partnerships or shared ownership, making succession planning critical. What happens if one partner wants to exit or can no longer work in the business?

Thada regularly advises on and drafts buy-sell agreements , giving franchise owners peace of mind that there’s a clear, agreed-upon plan for ownership changes. This forward planning helps avoid costly disputes later on.

Franchising Across Industries

The franchise model spans nearly every sector of the economy. Thada has worked with a wide range of businesses, including:

Support services : Snap Printing, Jims, VIP Cleaning, Hire A Hubby, Coffee News
Automotive and heavy machinery : Bridgestone Tyres, John Deere
Health, beauty & fitness : Caci Clinic, The Cosmetic Clinic, Just Cuts, Creo Gym, Snap Fitness
Professional services : SBA Accounting
Food & hospitality : Nandos, Flame, Quest, The Coffee Guy, Columbus Coffee, LJ’s, Hell Pizza, Seafood collective, PappaRich, Mexicali —and many more!

Get It Right From the Start

Whether you’re buying into a franchise or launching one of your own, it’s essential to work with a lawyer who understands the franchise model. The legal landscape is complex, but the right support ensures you're protected—and set up for long-term success.

Did you know https://franchiselaw.co.nz/ is part of Conveyancing Shop Lawyers and led by Thada Chapman herself. If you're involved in franchising in New Zealand, you're in the right hands.

Get in touch today to book a consultation or learn more about our franchising legal services. Let’s make your franchise journey a success—right from day one.

Celebrating 20 years of Conveyancing Shop Lawyers !

Fri, 18 Jul 2025 07:31:40 GMT

Marking 20 years of innovation and excellence in New Zealand.

Over the past 20 years, we’ve walked alongside our clients through some of the most memorable chapters of their lives. We've shared the joy of first-home buyers finally getting the keys to their dream home, and we've been there to support families navigating the legal side of losing a loved one. These moments—both the highs and the lows—are why we do what we do.

At Conveyancing Shop Lawyers, we’ve never seen ourselves as just lawyers. We’re people who care deeply about making legal services feel less daunting and more human. From the very beginning, we wanted to change how law was practiced in New Zealand. Back in 2005, we pioneered fixed fees and transparent pricing, simply because we believed our clients deserved to know exactly what they were paying for—no surprises, no hidden costs. It was a radical idea at the time, but one that has now become the industry standard.

Over two decades, we’ve helped tens of thousands of New Zealanders buy and sell homes, refinance properties, and grow their businesses. Thada’s deep expertise in franchising has made her a go-to advisor for many of the country’s leading franchise brands, as well as for countless individuals stepping into business ownership or preparing for a successful exit.

But more than the numbers or the deals, it’s the people we remember. The newlyweds signing their first contract. The retirees downsizing after decades in the family home. The grieving children needing support with an estate. These moments matter. And we’re honoured to have been trusted through them all.

Led today by Directors Thada Chapman, Michelle Erasmus and Gurleena Walia, our team remains as passionate as ever about offering clear, compassionate legal support to the communities we serve. We’re proud of what we’ve achieved—but even more excited for what lies ahead.

Thank you to everyone who’s been part of our story so far. Here’s to the next 20 years of helping people navigate life’s biggest moments!.

– The Conveyancing Shop Team

Infrastructure Costs: The Hidden Price Tag in New Developments

Mon, 02 Jun 2025 11:34:16 GMT

Thinking of buying into a new residential development? Here’s what you need to know before signing on the dotted line.

Buying a new home or a section in a developing area can be an exciting prospect, particularly in parts of Auckland where new subdivisions and housing developments are changing the landscape quickly. Areas such as Drury, Māngere, Tāmaki and the wider north-west are all seeing significant investment and development. But when you are looking at the advertised price of a new property, there can be other costs sitting behind the development that are worth understanding before you sign a Sale and Purchase Agreement.

One of these is the cost of providing the infrastructure needed to support new development. Auckland Council uses development contributions to recover part of the cost of infrastructure required as new homes and businesses are built. These contributions help fund things such as roads, footpaths and intersections, parks and community facilities, drainage and stormwater infrastructure. The council's current Development Contributions Policy came into effect on 1 July 2025.

The amounts involved can be substantial, particularly in some of Auckland's major growth areas. Under the 2025 policy, the average development contribution for a household unit equivalent is $64,000 in Drury, $27,000 in Māngere and $71,000 in Tāmaki where there is a stormwater connection. The average contribution in Mt Roskill is $33,000, while the figure across the rest of the Auckland region is $20,000. These are average figures and the actual amount payable can vary depending on the location and the type and size of the development.

Drury is a particularly good example of why buyers need to understand what is happening in the area where they are purchasing. Auckland Council has identified Drury as an investment priority area and has planned significant infrastructure investment to support its expected growth. The council's 2025 policy provides for development contributions to help fund that infrastructure, with the charges reflecting the substantial investment required in growth areas.

This does not necessarily mean that a purchaser will receive a separate bill from Auckland Council for the development contribution. In many cases, the developer will factor its development costs into the price of the land or house. The important point for a purchaser is to understand what the developer has agreed to pay, what has already been paid, and whether the agreement leaves any possibility of additional costs being passed on to the purchaser.

This is something we recommend looking at carefully when reviewing a contract for a new build or house-and-land package. A property may be advertised at a particular price, but the Sale and Purchase Agreement can contain provisions dealing with increases in costs, changes to the development or additional charges that arise before settlement. The wording of the particular agreement is therefore important.

It is also worth remembering that development contributions are only one part of the infrastructure picture. Auckland Council explains that the contributions policy covers infrastructure such as transport, parks, drainage, stormwater and community facilities. Water and wastewater infrastructure is not charged under the development contributions policy and is instead charged directly by Watercare Services Limited or Veolia Water, depending on the service arrangement.

For someone buying an established home, this issue may not be immediately obvious. For someone purchasing a section in a new subdivision, a house-and-land package, or a property in one of Auckland's rapidly expanding areas, it deserves much more attention.

Before signing, ask what development contributions have been paid and whether there are any outstanding amounts. Check the Sale and Purchase Agreement for clauses dealing with development costs, infrastructure charges or increases in the purchase price. It is also sensible to have your lawyer look at the wider development arrangements, particularly where construction has not yet started or settlement is some way into the future.

The cost of infrastructure is ultimately part of the cost of providing new housing. Auckland needs new roads, stormwater systems, parks and community facilities as the population grows, and someone has to pay for that infrastructure. Auckland Council's current policy is designed around the principle that growth should make a fair contribution towards the infrastructure needed to support it.

For a purchaser, the important thing is not to be caught by surprise. The advertised price is only one part of the financial picture when buying into a new development. Understanding the development contributions, infrastructure arrangements and terms of the Sale and Purchase Agreement before you commit can save you from an unpleasant surprise later.

If you are considering buying a new-build property, section or house-and-land package in Auckland, our property lawyers can review the agreement and help you understand what costs and obligations you may be taking on before you sign.

Do I need a lawyer to buy a house in New Zealand ?

Sun, 24 Nov 2024 11:46:19 GMT

What first-home buyers need to know about NZ conveyancing

Buying a house is one of the biggest decisions you’ll ever make—and one of the most Googled questions in New Zealand is: “Do I need a lawyer to buy a house?”

The short answer? Yes.

In New Zealand, it’s a legal requirement to use a lawyer or registered conveyancer when buying or selling property. But not just any lawyer—ideally, you want an experienced property lawyer who specialises in NZ conveyancing .

Why Do You Need a Lawyer to Buy a House?

Whether you're a first-home buyer or a seasoned investor, buying property in NZ involves complex legal documents, titles, and financial commitments. A property lawyer will:

Review and explain the Sale and Purchase Agreement before you sign
Conduct title searches
Manage conditions like finance, LIM reports, or building inspections
Ensure legal transfer of ownership (settlement)
Liaise with your bank or mortgage broker, receive funds and pay these across to complete settlement
Register your name on the title through Land Information New Zealand (LINZ)

Trying to DIY this process is not only risky—it’s not legally allowed in most cases.

What Is NZ Conveyancing?

Conveyancing is the legal process of transferring property from one owner to another. In NZ, conveyancing includes checking titles, dealing with local councils, arranging finance, and ensuring the transaction complies with all laws.

Some law firms, like us Conveyancing Shop Lawyers , specialise in this area and offer affordable fees, fast service, and extra support for first-home buyers. If you’re looking to avoid stress and surprises, this kind of expertise matters.

First-Home Buyers: What to Expect

If you’re a first-home buyer , it’s especially important to have a lawyer who can guide you through:

Checking Sale and Purchase Agreements before you sign and advising on what conditions to include
KiwiSaver withdrawals
First Home Grant applications
Understanding conditional offers
Dealing with developers or off-the-plan purchases
Navigating cross-leases, unit titles, or easements

Your lawyer will also help make sure you don’t miss key deadlines or get stuck with hidden costs.

Choosing the Right Property Lawyer

Look for a lawyer who:

Specialises in NZ conveyancing
Offers transparent pricing
Communicates clearly and regularly
Has a strong track record with first-home buyers

Final Word

So, do you need a lawyer to buy a house in NZ? Absolutely.
More importantly, you need one who speaks your language, has your back, and knows the ins and outs of New Zealand property law.

At the Conveyancing Shop , we’ve helped thousands of Kiwis into their homes. Get in touch today to find out how we can help you too.

Reflections from lockdown - newsletter

Wed, 13 May 2020 21:15:56 GMT

Looking forward to life post lockdown

Lets face it lockdown meant some big changes, for us individually, as a firm, an industry and a country.

Working from home took some getting used to - our team reported quite varied challenges, from mastering new technology, balancing home schooling kids with work, coping with loneliness in isolation, to struggling to work with a dog on your lap (which if you have a St Bernard like I do, is a real challenge!) and last but by no means least, missing our favourite coffee fix! The transition was seamless for our clients, as we had all the systems in place to manage files, receive calls and emails and continue business as usual.

Like most industries we have seen a marked decrease in work during the lockdown as property sales practically came to a standstill. We are pleased to see the market is starting to pick up again. The drop in mortgage interest rates make it a great time to refinance and easing of LVR restrictions mean that we are now seeing many enquiries from first home buyers which is a good sign!

There have been some legislative changes that allow us to witness many documents via audio visual links rather than in person. This has definitely made things easier during lockdown and we will continue to use this method Post-covid to look after clients New Zealand wide and overseas.

Our team is excited to transition back to the office from Thursday 14th May. We ask that clients please continue to email, call and video conference for a while longer as we will not be open for face to face appointments at this time.

We trust that you are all safe in your bubbles and looking forward to returning to normality soon!

Thada, Sirpa, Michelle and the CSL Team

Mortgage Holidays - relief during Covid 19

Sun, 03 May 2020 23:46:31 GMT

Mortgage Holiday - Will it help or hinder?

Many people have taken advantage of the mortgage holiday option offered by mainstream banks to provide relief during the Covid 19 crisis in New Zealand. What some people may not have considered is that this is a repayment holiday not an interest holiday. The interest keeps accruing on your loan and is added to the amount you owe the bank. After the 6 month mortgage the amount you owe the bank will have increased.

Let me give you an example.

Say you have a $500,000 Mortgage fixed at an interest rate of 4.25% for 20 years. The interest you will be charged for the 6 months would be $10,625. During a mortgage holiday this interest would still accrue and would be added to the overall amount you owe. After 6 months your mortgage would have increased to $510,625. You would then be charged interest on this higher amount and/or the term of your loan would be extended.

I realise that for some a mortgage holiday is the only way to make ends meet at the moment, but I have also seen many people who are just taking advantage of the offer and having a break from repayments just because they can.

While a mortgage holiday may give you temporary cash flow assistance you need to consider the long term cost and assess if it is worthwhile. Could switching to interest only payments work out better in the long run. This way you will reduce your payments but not increase the amount you owe.

Important note: This is a discussion topic only based on the personal opinion of the author. It does not reflect the companies views or policies and is not intended to give legal, financial or tax advice

Due Diligence when Buying a Business

Wed, 24 Apr 2019 02:29:49 GMT

Due Diligence Investigation of the business before buying.

If you are considering buying an existing business, you need to do your due diligence. Doing a due diligence investigation allows you time to find out more about the business and engage professional advice. This enables you to make an informed decision as to whether this business is feasible and right for you.

What is Due diligence?

Due diligence refers to the process of evaluating a prospective business before purchasing. This will allow you the opportunity to thoroughly investigate all aspects of a business including the business’s operations, financial performance, legal compliance, employee staff arrangements, customer contracts, intellectual property, assets and other details.

Why is due diligence necessary?

This is your opportunity to assess the value of a business and the risks associated with buying it. There is often a lot more involved in operating a business that one might expect. If you don’t do your due diligence you may end up making a bad decision and buy something that isn’t as you thought it would be. In particular you should check that any information presented by the Vendor (especially with regards to financial forecasts and reports) is accurate. You must satisfy yourself that the company is profitable and any projections as to future earnings are realistic and achievable.

When is the best time to conduct your due diligence investigation?

The due diligence process can be carried out either before or after an agreement for sale and purchase is entered into. Where it is to be carried out after an agreement has been signed, the agreement will need to include a “due diligence” condition. This condition provides a set timeframe for you to carry out your investigations. It should also say that the vendor will provide or to allow access to the relevant information and documentation, and give you the option to cancel the agreement if your investigation is unsatisfactory for whatever reason.

Who should you involve in the due diligence process?

We recommend that you have the financial information and forecasts checked by an accountant. They should also advise on any potential tax implications and the best ownership structure for business purchase. You should also have the Sale and Purchase Agreement, lease and any supplier, customer or employment contracts that you would be taking over reviewed by your lawyer. Valuers and other experts may be required depending on the type of business and industry involved.

What is included in a Due Diligence Investigation?

Due diligence can take many different forms as it varies from industry to industry. We would be happy to discuss your particular situation with you. Some of the common issues covered however are:

Accounts, financial information and tax records.
Leases, employment, supplier contracts, customer terms of trade and any contractual agreements to which the business is party.
Proprietary information such as copy rights trademarks patents.
Systems, operating procedures, workflows – this may involve spending time in the business observing how it operates.
Customer references.
Industry regulations, health and safety requirements and compliance issues.
Inspection of the condition and value of the assets including property, vehicles equipment and machinery.
Should you sign a confidentiality / non disclosure agreement?
The information that Vendors disclose during due diligence is often highly sensitive and confidential. It is not uncommon for them to as you to sign a non-disclosure agreement / confidentiality agreement before you access this information. You should ensure this agreement relates only to keeping the business information provided confidential and does not limit or prohibit you from operating a similar type of venture that you may already have in mind. It is always a good idea to get confidentiality agreements checked by your lawyer before you sign.

If you have any queries regarding buying a business our team of experienced commercial lawyers in Auckland are here to help. Get in touch with our friendly legal team on 09 237 1008

This article does not constitute legal advice and should not be relied upon as such. It is intended only to provide simplified general information on matters of interest and it is not comprehensive. You should seek legal or other professional advice and not relying on any of the contents of this site.

Mortgagee Sales Buyers Beware

Wed, 24 Apr 2019 02:07:06 GMT

The risks of buying a property at Mortgagee Sale

Mortgagee Sales: What Buyers Need to Know Before You Bid

There may be some bargain properties up for grabs at mortgagee sales, but buyers need to be careful. A mortgagee sale can present an opportunity to purchase a property at an attractive price, but it also comes with risks that you would not normally encounter when buying a property from the owner.

A mortgagee sale occurs when a property owner has defaulted on their mortgage and the mortgagee, usually a bank or other lender, exercises its power of sale to recover the money owed. The mortgagee is selling the property to recover its debt, rather than selling it as the owner would in an ordinary residential property transaction.

This difference is important because the mortgagee may not be in a position to give you the same information, warranties or protections that you would normally expect from a vendor.

Mortgagee auctions are unconditional

Buying at auction is different from negotiating a standard Sale and Purchase Agreement. An auction is generally unconditional, which means that if you are the successful bidder, you are committed to completing the purchase. You therefore need to do your homework before you bid . This includes arranging your finance and, where possible, obtaining and reviewing the title, LIM, building inspection and any other reports you need.

You should also have your lawyer review the auction agreement and any special mortgagee-sale conditions before the auction. There is no universal Sale and Purchase Agreement, and mortgagee agreements can contain conditions that differ significantly from a standard residential agreement.

The important point is simple: you don't get to win the auction and then decide whether you are happy with the property.

Why are mortgagee sales different?

A standard residential sale generally comes with a range of obligations and warranties from the vendor. A mortgagee sale can be very different. The mortgagee may have limited knowledge of the property's history and may not be prepared to give the usual vendor warranties. The special conditions in the mortgagee agreement can also place additional risks on the purchaser.

Some of the issues we recommend buyers consider are:

1. You may not get vacant possession

In an ordinary residential sale, the agreement will generally specify whether the property is to be provided with vacant possession or subject to an existing tenancy.

With a mortgagee sale, however, the mortgagee does not necessarily guarantee that the property will be vacant on settlement. The previous owner or another occupier may still be living at the property.

If the property is not vacant when you become the owner, you may have to take steps to obtain possession. This can involve additional time, cost and legal complications.

Do not assume that buying the property means you will automatically receive an empty house on settlement. Find out who is occupying the property and exactly what the mortgagee-sale agreement says about possession before you bid.

2. The property could be damaged before settlement

One of the risks of a mortgagee sale is that the property may be damaged between the auction and settlement. The mortgagee's obligations regarding the condition of the property may be significantly different from those of an ordinary vendor. There have been situations where a disgruntled former owner has damaged a property or removed items before leaving.

This is one reason why insurance is particularly important . You should speak to your insurer before bidding and establish whether the property can be insured from the relevant date and what cover is available. Depending on the terms of the mortgagee sale, you may be required to arrange insurance before settlement because the mortgagee may no longer be responsible for the property once the agreement is signed. Do not leave this until after the auction.

3. Chattels may not be included

In a standard residential sale, the Sale and Purchase Agreement specifies which chattels are included with the property. With a mortgagee sale, you cannot assume that the usual chattels will remain. The mortgagee may not offer the property for sale with items such as the stove, curtains, dishwasher, heat pump or other chattels, and the agreement may specifically exclude them. This can come as a surprise to buyers who have viewed photographs showing a fully equipped kitchen or other items throughout the property. Check the chattels provisions in the mortgagee-sale agreement carefully before you bid. If something is important to you, don't assume it will remain simply because it is visible in the property's advertising.

4. You may not be able to properly inspect the property

Sometimes a mortgagee sale property is occupied and prospective purchasers cannot obtain the same level of access that they would normally expect.

You may have limited opportunity to inspect the inside of the property, arrange a building inspection or investigate alterations and maintenance issues.

This means you could be bidding without knowing the full condition of the property.

If you cannot obtain a building inspection, you need to understand that you are taking on significantly more risk. A property that appears to be a bargain may require substantial work once you have access to it.

Settled.govt.nz specifically recommends buyers carry out as much due diligence as possible and have their lawyer review the documents before purchasing a mortgagee-sale property.

5. There may be no usual vendor warranties

One of the biggest differences between an ordinary property sale and a mortgagee sale is the warranties provided by the vendor. The standard warranties and undertakings found in an ordinary Sale and Purchase Agreement may be excluded or modified in a mortgagee sale agreement. For example, you should not assume that the mortgagee will warrant that alterations to the property were properly consented or that a Code Compliance Certificate exists. The mortgagee may simply not have the information that an owner would normally provide.

This is particularly important if the property has:

extensions or alterations
converted garages or other spaces
decks or other structures
unconsented building work
unusual plumbing or electrical work
changes that may require council approval.

You need to investigate these matters before bidding wherever possible.

6. The property may be sold on very different terms

A mortgagee-sale agreement is not simply a normal Sale and Purchase Agreement with the word “mortgagee” added to it. The special conditions can significantly change the risks for the purchaser.

This is why we strongly recommend having your lawyer review the actual mortgagee-sale agreement, title and available property information before you bid . Your lawyer can identify the risks that apply to that particular property and explain what you are agreeing to if you become the successful bidder.

7. The sale may not proceed as expected

A mortgagee sale is ultimately being undertaken to recover money owed to the lender. There can be circumstances in which the mortgagee sale does not proceed as expected.

For example, the owner may resolve the mortgage default before the sale is completed. Settled.govt.nz notes that a mortgagee sale can be stopped if the owner repays the mortgage before settlement.

This is another reason not to make arrangements or incur significant costs on the assumption that the purchase will proceed until you have taken proper legal advice.

Is a mortgagee sale worth the risk?

It can be.

A mortgagee sale is not automatically a bad purchase, and there are circumstances where buyers can secure a property at a good price. The key is to understand why the property is being sold cheaply and what risks you are taking on in exchange for that price .

A lower purchase price may not be a bargain if you subsequently discover that:

you cannot obtain insurance;
the property requires significant repairs;
there are unconsented alterations;
you cannot obtain vacant possession;
important chattels have been removed;
you cannot obtain the usual vendor warranties; or
you have limited ability to investigate the property before committing to buy.

Our advice to mortgagee-sale buyers

If you are considering bidding at a mortgagee auction, talk to your lawyer before you bid, not after you win.

Before auction day, we recommend that you:

Have the mortgagee-sale agreement reviewed by your lawyer.
Check the Record of Title and any registered interests.
Obtain a LIM and other council information where available.
Arrange a building inspection if access is available.
Confirm your finance before bidding.
Speak to your insurer about whether the property can be insured and from what date.
Find out whether the property is occupied and what the agreement says about possession.
Check exactly which chattels are included.
Investigate any obvious alterations, additions or other potential building issues.
Understand every special condition in the mortgagee-sale agreement before you commit to the purchase.

Mortgagee sales can offer opportunities, but they are not ordinary property purchases

The prospect of buying a property below market value can be tempting, particularly when you see a property advertised as a mortgagee sale. But don't let the auction atmosphere or the prospect of a bargain persuade you to bid before you understand what you are buying.

Do your due diligence first. Get the agreement reviewed. Understand the risks. Then decide whether the property is still a bargain.

Contact our team of lawyers before you bid at a mortgagee auction.

Originally published in 2019 and reviewed and updated on 7 September 2026 by Sirpa Gunn.

Joint Tenants VS Tenants in Common

Wed, 24 Apr 2019 01:51:09 GMT

Who will inherit your property when you die? If it is owned as joint tenants it may not be who you intended it to go to!

Do you own a property jointly with another person? (be it a husband, wife, business partner, family member or friend) Is the property registered in your personal names as opposed to a trust or company?

If so it is vital that you understand the implications of the ownership structure and what will happen to the property on your death or the death of any co-owners. There are two options: firstly, to own the property as joint tenants; secondly as tenants in common.

1. Joint Tenants:

Where a property is owned as joint tenants all of the owners names are listed on the title in the following format: Jane Sarah Jones and Mathew John Smith. This is the most common form of ownership and banks will issue mortgage documents in this form unless you specifically request otherwise.

If one owner dies the property will pass directly into the name of the other owner(s). In this example if Jane Jones dies the property will pass directly into Mathew Smith’s name. This is all very well if they are a couple that have kids together, but families these days are not always that simple. If Jane Jones had children from a previous relationship they would miss out entirely, even if her will specified otherwise! Or if she had no children she may want her assets to go to her family (parents and siblings) rather than to her current partner as listed on the title.

Putting someones name on the title to help get a mortgage is quite a common occurrence – however few people realize the consequences . An example of this is a lady in her 70’s who wanted to purchase her dream retirement home. The house she chose cost $1,000,000 however she only had $900,000 saved and required a loan for $100,000 to complete the purchase. As she was no longer working the bank was reluctant to give her a mortgage so her eldest son kindly agreed to purchase the property jointly with her. His name went on the title, and he assisted his mother by making mortgage repayments. When she passed away, 15 years later, the entire property went directly to the eldest son. Needless to say her other four children were horrified at loosing out on their inheritance and a long nasty family feud (and legal battle) ensued.

2. Tenants in Common:

With this option the ownership of the property is divided into shares. Should one of the owners pass away, their share in the property will go to their estate and be dealt with according to their wills and?or the laws of intestacy and relationship property.

This method of ownership is usually suited to:

– business partners or friends co-purchasing a property

– couples with children from former relationships that wish to leave a share in the property to their children

– anyone going on the title to give financial assistance for mortgage purposes.

The amount each party contributes to the purchase can be reflected in the shares, so in the case of the son helping his mother he could have had a 1/10th share in the property and his mother a 9/10th share. On her death the mothers share would then be divided equally among her children, as she had no doubt intended.

Get in touch with the Conveyancing Shop Lawyers for more advice on property ownership options including: Joint Tenants, Tenants in Common and other property ownership options .

Buying Leasehold Property In New Zealand

Tue, 23 Apr 2019 05:59:25 GMT

The Pro's and Con's of buying a leasehold property in New Zealand

What is leasehold land?

Leasehold is a form of property ownership whereby you own the buildings and any other improvements on the site, but you lease or rent the land from a land owner.

The Pro’s

Leasehold land is without a doubt cheaper than buying freehold. This is because you are not purchasing the land outright, only a right to us it for the period of the lease. In Auckland it is possible to purchase an affordable leasehold home in a trendy area like Parnell, the City Waterfront or One Tree Hill where freehold properties can sell for well over double the cost of a leasehold!

For some people buying leasehold works out cheaper than renting over the period of the lease with the added benefit of owning your own home. Others decide to buy leasehold as after doing the sums they find that paying a typical lease fee of 5% p.a. of the freehold value of the land to the landowner is less than paying 8% mortgage interest to the bank on a more expensive freehold property!.

The Cons:

You should be aware however that while the lease may be affordable at the time of purchase there are rent review periods where the ground rent is assessed in comparison to the current property market values. This means that if the freehold value has increased you run the risk of a sometimes substantial increase in ground rent. I remember a few years back some clients of mine were most distressed to learn that the lease fees for their city apartment were increasing by over $10,000 per annum!

Generally people buy real estate as an investment, as way to build wealth for themselves and their heirs. It is usually the value of the land which increases over time providing capital gains to the land owner. In a leasehold situation it is the owner of the land that benefits from this increase in value of the land over time where the tenant only has the right to live there and owns an ageing house that could be decreasing in value and needing expensive maintenance and repairs.

Leasehold land is more difficult to finance with banks requiring higher deposits than for freehold equivalents. It can also prove more difficult to sell a leasehold property, particularly if you are nearing the end of the lease or approaching a review period. And remember with a leasehold property all outgoings are still your responsibility (not the land owners). These include city and regional council rates, body corporate fees if it is a stratum title, insurance and maintenance.

Do your homework:

Each leasehold property needs to be assessed on its own merits as not all leases are the same. Many have a finite term of say 50 or 100 years. The value of the property is obviously affected by the remaining term of the lease whether it has 60 years left to run or 6 can make a big difference! Some leases give the tenant the option to purchase the land freehold on expiry of the lease with a formula included to calculate the sale price of the land at that time. Other leases while having a finite term also have a right of renewal which if exercised would mean the lease could continue in perpetuity. There are also often restrictions as to the land use included in the lease. Before entering into an agreement to purchase leasehold land it is essential to get legal advice and go through the lease documentation with your lawyer before deciding whether or not to proceed.

Contact the Conveyancing Shop Lawyers today on 0800 Solicitor for more information on buying leasehold land.

Essential conditions for a S&P Agreement

Wed, 25 Apr 2018 12:00:00 GMT

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Buying a property is a big investment, often the biggest individuals make in their lifetimes making the Sale and Purchase Agreement one of the most important documents they will ever sign. It is therefore quite alarming to see how many people enter into this legally binding contract without getting advice from a lawyer and without understanding what is contained in the agreement.

Only last week I had a young couple bring in a signed agreement to purchase a property that contained no conditions. They had found a property on Trade Me and signed up a Sale and Purchase agreement with the Vendors thinking that they were just “negotiating the price” and now wanted to order a LIM report and apply for finance approval. They were extremely surprised to discover that they had entered into an unconditional contract without including the necessary conditions! I come across this type of easily avoidable problem on a daily basis that purely result from individuals not getting legal advice before entering into an agreement. Some other examples are purchasers not realising that the price they have agreed to is plus GST, poorly drafted clauses that lead to disputes over the interpretation and the worst case of a client signing a blank agreement and leaving their friend to fill in the details!

Another misconception is that purchasers or vendors can cancel the agreement if they change their mind. This is not the case so it’s imperative that conditions are inserted into the agreement (before signing!) allowing the purchaser time to do their homework on the property.

The three most common conditions which are recommended for most residential property purchases are:

1. Finance Condition

Even if you have pre-approval from your bank you still need to get unconditional finance approval for the particular property you are purchasing.

2. LIM Report

This is report prepared by the City Council giving information regarding the property such as land features, rates, building consents, zoning and more

3. Building Inspection Repor t

Get a qualified building inspector to investigate the property for any potential maintenance, water tightness or structural issues

If you are purchasing a house that is being built or subdivision that is not yet complete a Sunset Clause may be appropriate. This would give you the option to get out of the agreement should the work not be completed and settlement not have occurred within a specified time frame. If you are an overseas person wishing to purchase sensitive land in New Zealand then an OIA consent condition would be required

Other common conditions include a subject to a Registered Valuation, Solicitors Approval, the Sale of an existing property and Due Diligence..

It is important that conditions are properly worded so that their meaning is clear and they are not disputed at a later date. A lawyer can help you in drafting a clause tailored to your specific situation.

Do not rely on verbal agreements with the Vendor or Agent. If they have agreed to do something like maintenance work on the property prior to settlement include this in the further terms of sale

Remember – No two property purchases are the same it is therefore essential to always consult your lawyer before entering into an agreement for Sale and Purchase to discuss what conditions are appropriate for the specific circumstances.

Tips for Buying at Auction

Mon, 23 Apr 2018 12:00:00 GMT

The 5 Essential Checks Before Buying a Property at Auction

5 essential pre-auction checks:

If you’ve been house-hunting in Auckland, you’ll know that the majority of properties in the region are selling at auction.This is tough for buyers as you have to do all the checks prior to bidding but remember a property is most peoples largest investment so well worth spending the time and money on!

1. Title and Auction Agreement – what type of property are you looking at? Is it a cross lease, fee simple, unit title or leasehold? What are the implications of each of these? Are there any additional clauses or exclusions in the contract? It is essential to go through the title of the property and auction agreement with your lawyer to be sure you fully understand what you are getting into..

2. LIM report – At auctions, the real estate agent often supplies the LIM to save potential buyers the cost of ordering one from the council. The LIM shows all the information the council has on file for the property, like Code of Compliance certificates and any outstanding requisitions.

3. Property file – In addition to the LIM, you may want to go into the Council to do a property bag inspection – this is highly recommended if you suspect un-consented work has been done on the property. You can view the plans and make sure they match what actually exists.

4. Builder’s report – Before buying you should always get the opinion of a building inspector. They will do moisture tests and check things that you may have missed. This can be expensive, but compared to the cost of the house it’s money well spent.

5. Finance – It is important to get finance approval in writing from your lender before you commit at an auction. Pre-approval is only half of the process – you also need to get the bank’s approval for the specific property you are bidding on.

Want to know more about buying at auction? Contact us on 0800 Solicitor for a free no obligations chat..

Article originally published in 2018 and reviewed on 7 September 2026

Don't forget the Chattels!

Tue, 13 Sep 2016 05:30:56 GMT

An important but often neglected part of a Sale and Purchase Agreement is the chattels list.

A chattel is a movable item that is not permanently attached to the land or building. Items that are permanently attached are generally considered fixtures and are treated differently. There is a small box on the second-to-last page of the standard Sale and Purchase Agreement containing a list of common items that are included with the property. These typically include floor coverings, window coverings, light fittings and the stove. However, there may be many other items at a property that a purchaser assumes will remain. If there is something you expect to be included in the sale, it is important to make sure it is specifically listed in the agreement.

Items such as garden sheds, dishwashers, waste disposal units, heat pumps, rangehoods, heated towel rails and alarm systems are often overlooked. I regularly receive distressed calls from purchasers who arrive for their pre-settlement inspection and discover that something they assumed was staying has been removed.

What you see is not necessarily what you are buying

One of the most important things for a purchaser to understand is that a property advertisement is not the same thing as the Sale and Purchase Agreement.

If an item is shown in photographs or mentioned in an advertisement, that does not necessarily mean it is included in the sale. If you want a particular item to remain at the property, make sure it is clearly identified in the agreement before you sign.

A real dispute and an unhappy purchaser

We recently dealt with a situation where a purchaser signed a Sale and Purchase Agreement without first obtaining legal advice.

At the pre-settlement inspection, they discovered that the spa pool shown in the property's advertising had been removed. The purchaser was understandably unhappy and raised the issue with us.

We reviewed the Sale and Purchase Agreement and found that the spa pool was not included in the chattels list. The purchaser then provided the original property advertisement, which clearly showed a spa pool at the property.

The vendor's position was that the spa pool had never been included in the agreed sale. They explained that the spa pool was available for the purchaser to purchase separately if they wished, but because it had not been included in the chattels list, they had accepted the purchaser's offer on that basis. The vendor's view was that, had the purchaser wanted the spa pool included, they would have expected a higher purchase price.

This illustrates an important point for buyers: what you see in a property advertisement is not necessarily the same as what you are legally purchasing.

The Sale and Purchase Agreement is the document that sets out the terms of the transaction. If there is something at the property that you expect to remain, make sure it is specifically addressed in the agreement before you sign.

Don't assume an expensive item will stay

I have also come across situations where vendors have removed or replaced chattels after the agreement has been signed.

For example, a vendor may replace an expensive light fitting with a cheaper one, or remove curtains and replace them with something of lesser value.

A purchaser is entitled to expect the property and included chattels to be in the agreed condition at settlement. However, disputes can arise when it is difficult to establish exactly what was at the property when the agreement was signed.

This is why taking photographs when you sign the agreement can be extremely useful. Your photographs can provide a record of what was actually at the property at the time of the sale.

What if you want to take a particular item with you?

The same principle applies to vendors.

I recently acted for a client who had a beautiful Venetian chandelier over the dining table. They definitely wanted to take the chandelier with them when they moved.

We advised them to address this before the agreement was signed by inserting a specific clause in the further terms of sale confirming that the chandelier was not included in the sale and would be removed before settlement.

This is a simple example of why it is important to identify anything unusual or valuable that you want to exclude from the sale before the agreement is signed.

Tips for avoiding chattel disputes

1. Walk through the property carefully before signing.
Don't just look at the rooms. Look at the kitchen, bathrooms, garage, garden and outdoor areas and identify anything you expect to remain.

2. Ask the agent what is included.
If you are unsure whether an item stays, ask the agent and make sure the agreement reflects what you have been told.

3. Check the chattels list carefully.
Don't assume that because an item is visible in the property or appears in the marketing photographs, it is included.

4. Take photographs.
Photographs taken when you sign the agreement can provide useful evidence of what was present at the property at that time.

5. Deal with unusual or valuable items specifically.
If there is a chandelier, artwork, appliance, garden structure or other item that is not straightforward, make sure it is specifically included or excluded in the agreement.

6. Get legal advice before you sign.
Once the Sale and Purchase Agreement is signed, it may be much more difficult to resolve a disagreement about what you thought was included. Having your lawyer review the agreement before you sign can help identify these issues early.

One of the easiest mistakes to avoid

Chattels might seem like a small part of buying a property, but they can become the source of a very unpleasant dispute.

If you are buying or selling a property, take the time to check the chattels list carefully and make sure it reflects what you have actually agreed.

And if you're not sure, ask before you sign. It's much easier to resolve a chattel issue before the agreement becomes unconditional than it is at settlement.

Originally published in 2016 and reviewed on 7 September 2026 by Sirpa Gunn.