The Sale and Purchase Agreement Explained for Canterbury Vendors

The sale and purchase agreement is the legally binding contract that governs your property sale from offer acceptance to settlement. Understanding its key components before you sign - or before you accept an offer on your behalf - is essential for every Canterbury vendor.

What the Agreement Contains

Under New Zealand law, a sale and purchase agreement must include: the names and contact details of the vendor and purchaser; the property address and legal description; the purchase price; the deposit amount and when it is payable; the settlement date; a list of chattels being sold with the property; any conditions and their deadline dates; and the GST status of the transaction. The standard agreement used across Canterbury is the REINZ-ADLS Agreement for Sale and Purchase, which incorporates standard general conditions covering matters such as access rights before settlement, insurance obligations, and what happens if either party defaults.

Conditions - What They Mean and How Long They Last

Conditions are the obligations that must be fulfilled before the agreement becomes unconditional. Common buyer conditions include: finance (the buyer needs formal bank approval for their mortgage); building inspection (the buyer needs a satisfactory building report); LIM (the buyer needs to review the Land Information Memorandum from the council); and subject to sale of the buyer's existing property. Each condition has a deadline date - typically five to fifteen working days from the date of the agreement. If the condition is not satisfied or waived by the deadline, the agreement can be cancelled. Once all conditions are satisfied or waived, the agreement becomes unconditional and neither party can cancel it without serious legal and financial consequences.

Chattels - The Most Common Source of Disputes

Chattels are movable items included in the sale - items that are not permanently fixed to the property. Standard chattels typically listed include stoves, dishwashers, rangehoods, curtains and blinds, carpet, heat pumps, garage door openers, and letterboxes. Under the REINZ-ADLS agreement, listed chattels must be delivered at settlement in reasonable working order. If a chattel is faulty, it should be listed as such in the schedule - for example, adding the words as-is where-is next to an item you know is not fully functional. Failing to disclose a faulty chattel and having the buyer discover it at the pre-settlement inspection can result in a price reduction negotiation immediately before settlement.

Settlement Date

The settlement date is when ownership legally transfers and you receive your sale proceeds. Standard Canterbury settlement periods run three to six weeks after going unconditional, though this is negotiable. Ensure your settlement date is realistic for your own circumstances - particularly if you need to coordinate with purchasing another property or arranging accommodation.

Information from Settled.govt.nz, the Real Estate Authority (REA), LegalVision NZ, and Rainey Collins Lawyers. For general information only - always obtain independent legal advice before signing a sale and purchase agreement.