The change is largely due to legislative changes, changes in established business practices, huge technological changes and, above all, the emphasis on consumer protection, which has permeated all forms of business practices. All good and good reasons to change! For many years, real estate agents and lawyers have used the standard form of the agreement approved by the Auckland District Law Society (ADLS) and the Real Estate Institute of NZ (REINZ); a form updated at regular intervals to reflect changing consumer needs. The 10th edition of this document was published at the end of 2019 and there are some important changes that buyers and sellers should be aware of. Although a number of changes have been made, the core agreement does not deviate from its underlying objective. There remains an agreement that is suitable for the vast majority of sellers and buyers considering the sale and purchase of real estate in New Zealand. The revised warranties mean that buyers must take into account « how seen » items are intended for sale and are in an « appropriate work order. » Specificity should help buyers to better understand the quality of the items provided under the agreement. We may see a default position in which everything is marked as « as expected. » A buyer may be required to expressly request items that should be « in an appropriate work order. » Changes to Chatls listsThe 10th edition now separates the guarantees provided by a seller for the cats of the property. Obligation to meet the conditions: problems may arise while the buyer tries to fulfill the conditions and the buyer may revoke the contract. If there is a condition, the party that benefits from that condition is required to take all reasonable steps to accomplish it. You cannot terminate the z.B agreement if you have not received a report from a manufacturer. Even if a bank will not lend you the full amount to complete the purchase, you may be required, under the condition of standard financing, to exhaust all reasonable opportunities to obtain financing, including asking the seller for « lender financing. » Developers have already made a number of changes to the standard form of the agreement when they sell the plan. I guess we need to make a little more changes to the changes that have been made.
We will deal with this on a case-by-case basis with our developer clients. REINZ says in the previous edition that if a financing condition is inserted into a sales contract and the buyer cannot get financing, his word is usually good enough for a person to withdraw from a contract. The Real Estate Institute of New Zealand states that the changes to the financial condition clauses in the 10th edition of the REINZ/ADLS Inc. contract for sale and purchase mean that buyers must provide evidence if they are unable to find financing. « It is also important that anyone who wants to buy a property seek legal advice and talk to their financial services provider so that they understand exactly what they are signing, or that the implications are significant enough. » For sellers, the new compensation scheme must be carefully considered by a buyer. This means that a buyer must complete the preliminary review for billing purposes at least four or five days before the count. This is not current practice, but it is necessary if they have to increase the right to compensation in a timely manner so as not to influence the expected settlement date. If it is increased late and a creditor challenges the right, the settlement date is postponed.