NEW AGREEMENT FOR SALE AND PURCHASE - BE WARNED!!!!!

The Real Estate Institute of New Zealand (REINZ) has developed and issued a new form for the sale and purchase of property. The new form (called an "Agreement for buying and selling Real Estate") has changed the responsibilities for both Vendor and Purchaser alike when compared to the existing Agreement for Sale and Purchase (which is a joint REINZ and Law Society initiative). The new form was released at the start of July 2009 and purports to be a "plain English" document that everyone can understand. Whilst this sounds logical the jury is still very much out as to how this form will work in practice and whether there will be problems related to interpretation and meaning. For some considerable time to come there will be two options out there in the property marketplace and we therefore more strongly than ever recommend that you have us review ALL Agreements BEFORE you consider signing them. Whether the new form is better or worse than the existing one remains to be seen but extreme caution needs to be exercised - particularly in the initial introductory phase. YOU HAVE BEEN WARNED!

To find out some of the concerns that the Auckland District Law Society has about the new form see the attached letter addressed to all New Zealand practitioners.   Click here.

As well the Auckland District Law Society have obtained a detailed Barrister's opinion which sets out some very serious concerns about the use of the REINZ form. To read the opinion - Click here.