Sale and Purchase Agreement

A written agreement or contract between two or more parties to buy or sell a property. A sale and purchase agreement provides certainty to both the buyer and the seller as it sets out in writing all the agreed terms and conditions. It is a legally binding agreement. 

A real estate agent will probably use one of two forms of sale and purchase agreements:

1. „Auckland District Law Society and Real Estate Institute of New Zealand form (the ADLS form).  Sample copy here.
   
2. „„Real Estate Institute of New Zealand form (the REINZ form).

Your sale and purchase agreement should include the following:

• „„The name(s) of the seller(s) and buyer(s).
• „„The address of the property.
• „„The type of title (freehold, leasehold etc).
• „„The chattels that are to be sold with the property (e.g. whiteware, drapes, television aerial).
• „„The price.
• „„The rate of interest that the buyer must pay on any overdue payments.
• „„The deposit that the buyer must pay.
• „„The date on which the agreement will become unconditional if there are conditions.
• „„The settlement date (the date the buyer pays the remainder of the amount for the property, usually the day when the buyer can move into the property).
• „„Any conditions the buyer wants fulfilled before the contract is agreed.

We recommend that you consult a lawyer before you sign a sale and purchase agreement.