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. However, according to REINZ, buyers must now prove, as a result of changes in the financial situation, whether they are unable to find financing. The evidence may include a letter or email from the buyer`s bank confirming that the financing has been refused. In most cases, we will recommend continued use of the ADLS/REINZ 8th Edition Agreement until the provisions of the REINZ agreement are known, interpreted by the courts and well regulated. This can take a considerable amount of time. Therefore, if you plan to buy or sell property in the near future, please contact us for legal advice before signing an agreement. Keep in mind that all agents have access to both forms of agreement, so this should not be a difficulty or delay in the buying and selling process. Please contact our team if you have any further questions about this letter or if you need more detailed information. For more than 20 years, the purchase or sale of real estate in New Zealand has been registered with a standard agreement jointly established by the Auckland District Law Society and the Real Estate Institute of New Zealand. The agreement is now in its eighth year, having been improved in recent years to reflect changes in the way real estate is purchased and sold in New Zealand and to take into account changes to the law during this period.
If you are unable to obtain financing and wish to terminate the contract, you are required to prove the steps you have taken to obtain this financing. You cannot use this condition to cancel if you simply change your mind about the purchase. Toxicology report: It is now possible for a buyer to obtain a toxicology report as a standard condition in the agreement. If this option is selected, the buyer must hire a professional to test the drug`s contamination, primarily methamphetamine. The buyer has 15 working days to organize the test to be performed and to approve the written toxicology report. The construction report must now be written: the buyer now has 15 working days to assign a contractor to inspect the property and write a written report. If you do not approve the report for any reason, you must provide a copy of the report to the seller. Execution time: The date of the financial condition must be indicated on the first page of the agreement.
If you are a first-time home buyer and would like to use kiwiSaver to apply for a KiwiSaver HomeStart grant, we recommend a funding condition of at least 15 to 20 business days. As with any agreement, the seller and buyer should speak with their lawyers before signing an agreement and getting advice. As we move on to the new form, it is wise for real estate agents to highly recommend it to their clients.