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Pre Sale Agreement for New Zealand

Pre Sale Agreement Template for New Zealand

A Pre Sale Agreement is a legally binding document used in New Zealand property transactions to establish the terms and conditions of a property sale before the final sale and purchase agreement is executed. This document, governed by New Zealand law, particularly the Contract and Commercial Law Act 2017 and Property Law Act 2007, outlines essential elements including property details, purchase price, payment terms, conditions precedent, and settlement requirements. It provides protection for both parties by clearly defining their rights and obligations during the pre-sale period while ensuring compliance with New Zealand's property transaction requirements.

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What is a Pre Sale Agreement?

The Pre Sale Agreement serves as a crucial preliminary contract in New Zealand property transactions, establishing legally binding commitments between parties before the final sale. This document is particularly valuable in new developments, off-plan purchases, and complex property transactions where extended settlement periods or specific conditions need to be met before final sale. It includes comprehensive details about the property, payment terms, conditions precedent, and settlement requirements, all aligned with New Zealand's legal framework including the Property Law Act 2007 and Contract and Commercial Law Act 2017. The agreement provides security for both vendors and purchasers by clearly defining obligations, timelines, and conditions while allowing flexibility for due diligence and financing arrangements.

What sections should be included in a Pre Sale Agreement?

1. Parties: Identification and details of the vendor and purchaser, including full legal names, addresses, and company details if applicable

2. Background: Context of the agreement, including property details and purpose of the pre-sale arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules for interpretation

4. Property Details: Comprehensive description of the property including legal description, title details, and any inclusions/exclusions

5. Purchase Price and Payment Terms: Agreed purchase price, deposit amount, payment schedule, and method of payment

6. Conditions Precedent: Conditions that must be satisfied before the agreement becomes unconditional

7. Due Diligence: Terms and timeframes for the purchaser's due diligence investigations

8. Settlement: Settlement date, process, and requirements for completion of the sale

9. Warranties and Representations: Warranties provided by both parties regarding the property and their capacity to enter the agreement

10. Default and Remedies: Consequences of default by either party and available remedies

11. General Provisions: Standard contract clauses including notices, entire agreement, governing law, and dispute resolution

What sections are optional to include in a Pre Sale Agreement?

1. Development Provisions: Required for off-plan purchases or properties under development, including construction specifications and timeframes

2. Body Corporate: Needed for unit title properties, covering body corporate rules and obligations

3. GST Provisions: Required when either party is GST registered or the transaction is subject to GST

4. Overseas Investment Provisions: Required when the purchaser is an overseas person under the Overseas Investment Act

5. Subdivision Provisions: Needed when the property is part of a proposed subdivision

6. Sunset Clause: Optional termination provision if certain conditions are not met within specified timeframes

7. Property Completion Requirements: For properties under construction, detailing required standards and specifications

8. Rental Guarantee: Optional for investment properties, providing guaranteed rental income for a specified period

What schedules should be included in a Pre Sale Agreement?

1. Property Schedule: Detailed description of the property including title details, area, and boundaries

2. Payment Schedule: Detailed breakdown of payment terms, instalments, and due dates

3. Chattels Schedule: List of chattels included or excluded from the sale

4. Due Diligence Checklist: List of items to be investigated during due diligence period

5. Plans and Specifications: For off-plan purchases, detailed plans and specifications of the property

6. Special Conditions: Any special conditions agreed between the parties

7. Prescribed Forms: Standard forms required under New Zealand law for property transactions

8. Title Documents: Copies of relevant title documents and encumbrances

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Document Type

Sales Contract

Sector

Sales

Cost

Free to use
Relevant legal definitions











































Clauses







































Relevant Industries

Real Estate

Property Development

Construction

Legal Services

Financial Services

Banking

Investment

Property Management

Commercial Property

Residential Property

Relevant Teams

Legal

Real Estate Sales

Property Development

Compliance

Risk Management

Operations

Settlements

Conveyancing

Business Development

Investment

Relevant Roles

Real Estate Agent

Property Lawyer

Conveyancing Lawyer

Property Developer

Sales Manager

Legal Counsel

Property Manager

Contracts Manager

Development Manager

Investment Manager

Real Estate Branch Manager

Compliance Officer

Property Consultant

Settlement Officer

Industries








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