The ADLS/REINZ Agreement for Sale & Purchase of Real Estate (Agreement) has become the standard form template used for residential (and often commercial) property transactions in New Zealand.
A new edition of the Agreement was released on 8 February 2022 and this edition contains changes that both vendors and purchasers should be aware of.
- Key changes to the Agreement include (but are not limited to) the following:
- Changes to the claims for compensation provisions;
- Inclusion of a Covid-19 clause;
- Revision of the limitation of liability clause for independent trustees;
- Reformatting of the signing page; and
- New provisions relating to tax purchase price allocation tax.
An overview can also be found on the ADLS website HERE
Although the Agreement is widely used as a template contract, it is important that all prospective vendors and purchasers understand their rights and obligations under the contract. Further, because it is a template, the Agreement will likely need to be drafted and/or amended to meet the particular requirements of the transaction and circumstances of the vendor or purchaser. For these reasons it is always important to obtain legal and technical advice before signing an Agreement.
If you are looking to buy or sell a property, please get in touch with our property team who will be happy to assist with preparation or review of your Agreement.
