In the latest edition, there are a number of important changes that involve additional changes or requirements for: A new requirement means that the 10-day requirement under the Realtors Act (during which the broker deposit must be held) begins as soon as the partner`s commitment is completed. This could mean for sellers that it makes more sense for the seller`s lawyer to keep the down payment. They could then make sure it is available for the bank`s repayment, for example at the time of resolution. Sellers must also ensure that a buyer expressly confirms in writing that there are no requirements to allow the deposit exemption. However, buyers must be aware that in order to terminate the contract according to the wording of the financing condition of the 10th edition, there must be a real lack of instability in order to find the financial resources necessary to conclude the purchase. Under the new provisions, the seller can ask the buyer to prove that the necessary financing could not be contracted or that his loan application was granted, but on conditions unsatisfactory for the buyer. The evidence may include a letter or email from the buyer`s bank confirming that the financing has been refused. If the buyer is unable to provide the necessary evidence, the buyer may be compelled to make the purchase or be subject to any other legal action that may be available to the seller. 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. You all know (hopefully!) that the publication of the 10th edition of the ADLS/REINZ agreement for sale and purchase last year made substantial changes under the terms of the agreement.
As with any agreement, it is essential that sellers and buyers seek legal advice prior to signing, particularly during this transitional period, when the new provisions will be examined and the effects of the new provisions are fully understood. The Auckland District Law Society and the Real Estate Institute of New Zealand have published the 10th edition of the widely held form of the agreement for the sale and purchase of real estate.