The NZ Sale and Purchase Agreement, clause by clause

Front page — the deal terms

• Purchaser — your full legal name(s) or trust/company name. Adding 'and/or nominee' lets you assign the contract before settlement (e.g. into a trust).
• Purchase price — including or excluding GST? Land-only or development purchases will usually be 'plus GST (if any)'.
• Deposit — typically 10%, paid to the agent's trust account on going unconditional.
• Settlement date — most contracts use a fixed date, not 'X days after'.
• Possession date — usually the same as settlement, but can differ for tenanted properties.

The Further Terms of Sale (page 4 onwards)

This is where extra conditions live. Common buyer-friendly additions:

• Finance condition with LVR specified
• LIM condition with right to terminate if anything is 'unsatisfactory in the buyer's sole discretion'
• Builder's report condition (same standard)
• Toxicology test condition
• Right of access for further inspections (with reasonable notice)
• Inclusion list of chattels

Chattels — easy to mess up

Chattels (whiteware, curtains, heat pumps, garden sheds, dishwashers) only transfer if listed. Be specific: brand, model, location. 'All curtains and blinds' is fine; 'all appliances' is risky. Anything bolted or attached generally counts as a fixture, not a chattel — but the line can be blurry, so list it.

Default interest and the cost of late settlement

Clause 3.13 of the standard agreement sets default interest — usually 14% per annum on the unpaid amount, calculated daily, payable from settlement date. On a $900k purchase, that's about $345 per day. If your bank delays settlement by even a few days, this is your bill.

Risk and insurance — the gap

Clause 5 makes the property the seller's risk until settlement, but practical insurance cover for the buyer should start the moment you go unconditional. Confirm this with your insurer in writing — some policies start only on the date you become registered owner.

Pre-settlement inspection

Clause 3.2 gives you a right to a pre-settlement inspection. Use it. Walk through the property within 48 hours of settlement to confirm chattels are present and condition matches what you signed. Discrepancies must be raised before settlement, not after.

Frequently asked questions