28 Infinity Drive (Lot 202)Peninsula Bay, Wanaka

auctIon Purchaser forms

Auction Saturday 25th February 2012 at 1pm,

on site at 33 Infinity Drive(unless sold prior)

NOTE: The information contained in this pack is intended to help purchasers with their initial interest. However it is strongly recommended that all parties undertake their own detailed investigations prior to purchase, such as taking independent legal advice prior to the auction.

auctIon Purchaser formsTable of contents

1. Consent by purchaser prior to entry into auction contract form

2. Purchaser registration to bid at auction

3. Bidder details

4. Limited power of attorney - Part 1 & 2

5. REINZ auction code of practice

6. REAA auction fact sheets

7. Trust account details

8. Variation of auction terms & conditions

9. REAA buyers’ guide

I/We as Purchaser(s) of the property located at:- PROPERTY ADDRESS: 28 Infinity Drive, Peninsula Bay, Wanaka (Lot 202) 

Hereby acknowledge that prior to entering into and signing the Auction Agreement that:- 1. I/We have been given a copy of an Approved Guide issued by the Real Estate Agents Authority; and

2. At the time we entered into this Auction Agreement we did so freely and voluntarily, without any influence or duress, and we confirm that we were offered the right of legal advice before entering into the same.  

  FURTHER DISCLOSURE

I/We acknowledge that a copy of the LIM is available upon application to Infinity Investment Group

I/We acknowledge that the following matters ( if any ) were specifically disclosed to us prior to entering into and signing the Auction Agreement

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

SIGNED

Purchaser: Date:   /   /20    at       am/pm

 Purchaser: Date:   /   /20    at       am/pm

 Agent: Date:   /   /20    at       am/pm

consent by purchaser prior to entry into auction contractual document

Property Address: 28 Infinity Drive, Peninsula Bay, Wanaka (Lot 202) For Auction: Saturday 25th February 2012 at 1.00pm, on site at 33 Infinity Drive 1. I/We(name/s) ______________________ hereby register to bid on my/our behalf at the Auction of the above property.

2. If I am/We are the successful Purchaser/s of the property, I/We agree to pay a deposit of 10% of the Purchase Price immediately to Berry & Co Solicitors (Trust account no. 060941 006720702) & sign the Auction Memorandum Recording Sale.

I/We acknowledge that:

3. I/We are in receipt of REINZ Sale of Real Estate by Auction (Third Edition, 2010) Particulars & Conditions of Sale and any addendum applicable thereto including Memorandum Recording Sale and agree to be unconditionally bound by such conditions.

4. I/We have been made aware that I/We can and may need to, and have had a reasonable opportunity to, seek legal, technical and other advice or information and have either obtained that advice or information or decided not to do so of my/our own accord.

5. I/We have been given a copy of the Agent’s in-house complaints and dispute resolution procedures before signing this Acknowledgement and I/We have also been advised that I/We may access the Real Estate Agents Authority’s complaints process and additional information at www.reaa.govt.nz without first using the in-house procedures and that any use of the in-house procedures does not preclude me/us making a complaint to the Authority.

6. I/We have been informed of any significant potential risk in respect of the property as specified below, arising from any hidden or underlying defects, which are known to the sales consultant or which appear likely on the basis of the sales consultant ‘s knowledge and experience of the real estate market, so that expert advice can be sought if I/We so choose:

Disclosed known defects or significant potential risks :

____________________________________________________________________________________ ____________________________________________________________________________________

Signed:

Purchaser Name: Date:

Purchaser registration to Bid at auction

Name(s) ________________________________________________________________________

________________________________________________________________________

Address: ________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

Home phone: ________________________ Daytime: ____________________________

Cellphone: ________________________ Fax: ____________________________

Email: ________________________________________________________________________

Signed: ________________________________________________________________________

Signed: ________________________________________________________________________

Real estate agency: ___________________________________________________________

Contact person: ___________________________________________________________

Bidder details

Be it known

That I/We ___________________________________________________________________________(hereafter known as the Purchaser) Of _________________________________________________________________________________(address)

Home Ph: _____________________________________ Work Ph:______________________________ 

Mobile Ph:_____________________________________

Does hereby irrevocably nominate, constitute and appoint

____________________________________________________________________________________(hereafter known as the Attorney)

Of__________________________________________________________________________________ (address) 

Home Ph: ____________________________________ Work Ph:_______________________________ 

Mobile Ph:_____________________________________

to be my/our true and lawful attorney for the Purchaser for the following specific purposes in respect of the auction /purchase of:

Property Description: 28 Infinity Drive, Peninsula Bay, Wanaka (Lot 202)

a) To sign any auction terms & conditions on my/our behalf;

b) To place bids at the auction on my/our behalf;

c) If successful at the auction to sign and complete the Auction Memorandum Recording Sale which forms part of the Particulars and Conditions of Sale on my/our behalf;

d) If successful at the auction to sign and complete any other documentation required to record the sale and purchase on my/our behalf.

e) If not successfully sold at auction to sign any subsequest sale and purchase agreement on my/ our instructions and with my/our agreement as to terms and conditions

Limited power of attorney to execute documentation to purchase real estate at auction - Part 1

I/we acknowledge that the acceptance of my/our Attorney bid or signing of a sale and purchase agreement is binding upon me/us in terms of the Particulars of Conditions of Sale or agreement in the same manner as if I/we was/were personally present at the auction or had signed myself/ourselves as applicable. I/we confirm that I/we will immediately pay the deposit to be paid upon the acceptance of my/our Attorney bid or as required in the sale and purchase agreement and I/we confirm that I/we will settle the purchase of the property on the applicable date shown in the sale & purchase agreement. I/we also acknowledge that I/we has/have received a copy of New Zealand Residential Property Sale and Purchase Agreement Guide and associated declarations or been referred to and viewed the appropriate sections on the REAA website as required by the REAA and associated REAA Act 2008 prior to the signing of this document.

The giving and granting of the power of attorney to the Attorney is effective immediately. It can be acted upon following instructions being given by the Purchaser to the Attorney. The Attorney faithfully complying with the instructions given to the Attorney .

Upon instructions being given to the Attorney and the faithful execution of those instructions I/We as the Purchaser indemnify the Attorney against any action, liability, claim, loss, damage, proceeding, expense (including legal costs) suffered or incurred arising from, or which is directly or indirectly, related to my/our breach or non-observance of any term of the Sale & Purchase documentation.

The Purchaser shall ratify and confirm whatever the Attorney does in the exercise of the powers and authorities conferred by this power of attorney including anything done between the time of revocation of this power of attorney and the time of such revocation becoming known to the Attorney.

The powers and authorities conferred by this power of attorney on an Attorney may not be revoked or suspended except by written notice by the Purchaser to that Attorney.

 Any person dealing with the Attorney in good faith may rely on a written statement by the Attorney to the effect that the Attorney has no notice of the revocation of suspension of his or her powers and authorities as conclusive evidence of that fact.

The exercise by an Attorney of the powers and authorities conferred by this power of attorney does not involve any assumption by that Attorney, or any firm or person in or by which he or she is a partner or employed, of personal liability in connection with the exercise of the powers and authorities or the consequences of doing so.

The Purchaser shall, if necessary, register this power of attorney whatever required to give effect to its terms. If the Purchaser fails to do so, the Attorney may register this power of attorney and claim reimbursement from the Purchaser of any costs reasonably incurred in doing so.

This power of attorney shall be governed by the laws of New Zealand.

 

Signed this day of __________________________________2012

 

Signed by Purchaser ___________________________________________________________

Signed by Attorney ___________________________________________________________

Limited power of attorney to execute documentation to purchase real estate at auction - Part 2

Code of Practice for the Sale of Real Estate by Auction__________________________________________________________________________________________________1. General 1.1 When conducting the sale of a property by auction, members shall not engage in any conduct which is misleading or deceptive or is likely to mislead or deceive. This principle applies to conduct prior to, at and after the auction. 2. Before the Auction 2.1 Members shall not advertise a property as being for sale by auction unless there is intended to be an auction and unless a written auction authority form has been duly executed by or on behalf of the seller. 2.2 Members shall provide a copy of this Code to prospective sellers prior to having them sign the auction authority. 2.3 Sellers must sign an acknowledgment of acceptance of the terms of this Code, which shall form part of the auction authority. 2.4 Prior to the auction the member shall make available for inspection the terms and conditions under which the sale of the property by auction will be undertaken. 2.5 If applicable the member shall specify in such terms and conditions of sale that the seller reserves the right to bid either personally or through an agent. 2.6 The member shall make this Code available for inspection prior to the auction. 2.7 Members must make reasonable endeavours to inform all interested parties if a property is to be withdrawn from auction or is to be sold prior to auction. 3. At the Auction 3.1 The auctioneer shall conduct the auction at all times with integrity and in compliance with the law of New Zealand and this Code. 3.2 The terms and conditions of sale shall be on display and available for inspection, together with this Code, at the auction. Any portion of the terms and conditions of sale relating to the description of the property will be read aloud by the auctioneer at the commencement of the auction of that property. 3.3 Before commencement of the bidding for a property the auctioneer shall announce whether the seller has set a reserve price. The reserve price, if any, shall not be disclosed to bidders. 3.4 Before commencement of the bidding for a property the auctioneer shall announce whether the seller has reserved the right to bid one or more times at any level below the reserve price at the auction and, if so:(a) Whether the member has been appointed to bid on behalf of the seller and, in such case, that all bids made on behalf of the seller will be made and declared by the auctioneer; or (b) Whether the seller or some other person will be bidding on behalf of the seller and shall identify that person in which case any bid made by that person shall be declared by the auctioneer. Neither the member nor

any salesperson engaged by the member shall make or assist any other person to make any bid on behalf of the seller in contravention of any announcement by the auctioneer pursuant to this clause. The member, or any salesperson engaged by the member, shall immediately advise the auctioneer of any bid which they believe to be made in contravention of this clause. 3.5 Where the seller does not provide the auctioneer with a written reserve prior to the auction, the auctioneer shall announce that the property is to be sold without reserve and no bid shall be made by or on behalf of the seller at the auction. 3.6 In making a bid on behalf of the seller at the auction, the auctioneer shall exercise his/her independent judgement. 3.7 Where in advance of the auction, any contractor/employee of the member or the auctioneer has been requested to bid for a prospective buyer, whether that buyer is present or absent, the auctioneer will announce that fact and identify those contractors/employees who will be so bidding. 3.8 The auctioneer shall ensure that the amount of any bid is clearly stated. 3.9 The auctioneer may refuse any bid. 3.10 The auctioneer shall resolve any disputed bid in accordance with the terms and conditions of sale governing the auction. If such terms and conditions do not specify how disputed bids are to be resolved then the auctioneer shall resolve any disputed bid in accordance with the Particulars and Conditions of Sale by Auction 3rd Edition (or any document approved by the REINZ in substitution thereof). 3.11 Under no circumstances will a bid by or on behalf of the seller be exercised by the auctioneer at or in excess of the seller’s reserve price. 3.12 The auctioneer will always clearly announce if the property is about to be sold under the hammer. 3.13 Subject to the reserve price being reached, the highest bidder shall be the buyer. 3.14 If the seller so instructs, the auctioneer will announce during the course of the auction that in the event of the property being passed in the highest bidder will have the first right of purchase of the property at the seller’s reserve price. 5. General 5.1 Members shall promptly report any alleged breaches of this Code to the Real Estate Institute of New Zealand Inc in writing specifying the particulars of the alleged breach and providing originals or copies of any relevant documents.

Vendor Acknowledgement:

Date:__________________________________________________________________________________________________Real Estate Institute of New Zealand Inc.202 Parnell Rd, PO Box 5663, Auckland 1, New Zealand Ph: 09 356 1755 _ Fax:

09 379 8471 _ e-mail: reinz@reinz.co.nz _ Dx: CP31508 Parnell _ www.reinz.co.nz

Auctions

Fact Sheet

What is an auction?

An auction is an open process at which buyers bid against each other to purchase a property. Once the reserve price

is reached, the highest bidder becomes the successful buyer.

FOR SELLERS

Should I sell my property by auction?

Your agent1 may recommend that you sell your property by auction, rather than on the basis of an advertised or

negotiated price.

Auctions can be seen as the best way to sell quickly or achieve a higher price, as the auction process creates a

sense of urgency and a feeling of competition between potential buyers.

This may or may not be the case and will depend on the property market at the time, how many similar properties are

available to potential buyers and how desirable your own property is. Be aware that an auction does not guarantee

that someone will offer to buy your property.

Can I have more than one agent if I sell by auction?

No. If you intend to sell by auction you will need to appoint a sole agent. You will need to sign an agency agreement

with your agent, and agree on a marketing plan.

For more information on Agency Agreements and Sale and Purchase Agreements visit www.reaa.govt.nz or call

0800forREAA (0800 367 7322)

1 Agent is a general term that refers to an agent, branch manager or salesperson.

Can I sell my property before the auction takes place?

You can do this, but your agent must advertise the fact in their marketing that “Offers will be considered prior to

auction”. If you do not want to consider offers in advance of the auction, the agent will specify in any advertising that

you are “not selling prior”.

There are advantages and disadvantages in either approach. Requiring potential buyers to bid at the auction may

get a better price, and a sale at auction is unconditional. However, the property may not sell on the auction day.

Accepting an offer prior to the auction means you have a sale, but you may settle for less than an auction could

achieve, and the sale may be conditional.

Prior to the auction you will need to establish a reserve price with the auctioneer and your agent. This is the lowest

price that you are willing to accept for your property.

What happens at the auction?

Once bidding passes the reserve price, the property is sold to the highest bidder. You will not have the opportunity to

negotiate further with that person. You therefore need to think carefully and realistically about the reserve price. For

example, you may want to think about the price you would be prepared to accept from a buyer if you were not

auctioning the property. At the same time, you need to avoid setting the reserve price at such a high level that

bidding does not come near it.

If the bidding does not reach the reserve price, the auctioneer will pause the auction and ask you for further

instructions. At that stage you can do a number of things:

If bidding has come close to, but not reached the reserve price, the auctioneer may suggest that you agree

that the property be put on the market. This means that the reserve price no longer applies, and you are

willing to accept the highest bid that is made when the auctioneer resumes, and the last bidder before the

auction was paused will be held to his/her bid. This approach may result in an immediate sale, but it carries

a risk – once you have removed the reserve price and declared the property on the market, you must

accept the highest bid, even if that is below your reserve price. You cannot negotiate on subsequent bids.

You can tell the auctioneer that the property is to be passed in. This means that the auctioneer will tell the

bidders that the auction is concluded, as the reserve price has not been reached. The auctioneer will

usually make an attempt to generate further bids before closing the auction.

If the property is passed in, you can negotiate with the person who made the highest bid, but you should be

aware that the offer may not be an unconditional one. This negotiation will continue, through your agent,

after the auction has closed. You do not have to accept any offer that is made during the subsequent

negotiation, and if you cannot negotiate a price and conditions that are acceptable to you, you can discuss

with your agent other options for marketing your property.

FOR BUYERS

What do I need to do before an auction?

If you are going to bid for a property at auction, you need to be prepared in advance. Remember, if you are the

successful bidder at an auction, you are immediately committed to buy the property. You will not have the

opportunity to take any legal advice, check aspects of the property, arrange a mortgage, or negotiate terms and

conditions once the auction is finished.

Prior to the auction, you can inspect the property either by appointment or by attending an open home. The agent or

salesperson should provide you with a copy of the terms and Contract of Sale, which will set out what chattels are

included with the property, and details such as the amount of deposit to be paid by the successful bidder and when

the balance of the payment is to be made.

You may want to arrange a valuation of the property, a building inspection or obtain a Land Information Memorandum

(LIM) report. You will also want to get your lawyer to check the title of the property and the Contract of Sale. You

need to arrange any finance required in advance. If you are the successful bidder on the day, you will have to pay a

deposit immediately and sign the Contract of Sale.

At the auction

The auctioneer will read aloud the terms and conditions of sale and state whether the seller has set a reserve price.

The auctioneer will not, of course, reveal the actual reserve price.

The auctioneer must also state whether the seller has reserved the right to bid during the auction. You should be

aware that the auctioneer or some other person can bid on behalf of the seller, at any point, provided bidding has not

reached the reserve price. This is known as “vendor bidding” and is sometimes used by the auctioneer as a way of

starting off the bidding or trying to move bidding towards the reserve. The auctioneer has to identify when a vendor

bid is made. If made by the auctioneer, the bid is often identified by saying something like “the bid is with me”.

Bidding will continue until the reserve price is reached or surpassed, at which point the highest bidder will be the

successful buyer.

If the reserve price is not reached, the seller can instruct the auctioneer to conclude the auction without selling.

What happens if the auction is concluded without a sale?

If you are the highest bidder you may be able to negotiate with the seller through the seller’s agent after the auction.

At this point the terms and conditions of the auction no longer apply and you have the opportunity of introducing

different terms and conditions if you wish.

Real Estate Agents Authority

PO Box 25371, Wellington, 6146Phone: 0800forREAA (0800 367 7322)Fax: 04 815 8468Email: info@reaa.govt.nzWebsite: www.reaa.govt.nz

To the best of the Real Estate Agents Authority knowledge, the information in this guide is accurate at the

date shown below. However, the requirements on which this information is based can change at any time

and the most up-to-date information is available at www.reaa.govt.nz [Version 1.0, 17 November 2009].

Please fax the following to 03 443 0089 when sending a deposit payment electronically.

 

 

Property address: _________________________________________________________________

  

Deposit amount: _________________________________________________________________

  

Date transferred: _________________________________________________________________

 

Account name: _________________________________________________________________

 

Bank and branch: _________________________________________________________________

____________________________________________________________________________________

To: Account Name: Berry & Co. Solicitors 

Trust account number: 06 - 0941 - 0067207 - 02

Infinity Investment Group trust account details

PARTIES

Vendor:

Bidder:

DEFINITIONS

Property to be auctioned: 28 infinity Drive, Peninsula Bay, Wanaka (Lot 202)

Date of Auction: Saturday 25th February 2012 at 1.00pm on site at 33 Infinity Drive

BACkGROUND

The Vendor intends to offer the Property for sale by Auction on the Auction Date based on the terms contained in the Real Estate by Auction (Third Edition, 2010) Particulars & Conditions of Sale and any addendum applicable thereto, (“Auction Terms and Conditions”) . The parties have agreed to vary the Auction Terms and Conditions by incorporating the variations contained in this document.

AGREEMENT

1. The Vendor agrees that the Bidder may place bids at the Auction for the Property on the Auction Date on the terms contained in the Auction Terms and Conditions with the following variations:

a. The Possession Date is:

b. ____________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Signed by: As Vendor ________________________________________________________________________

Signed By:

As Bidder ________________________________________________________________________

Variation of auction terms & conditions

New Zealand Residential Property Sale and Purchase

Agreements Guide

www.reaa.govt.nz 0800forREAA (0800 367 7322)

This guide has been prepared and approved by the Real Estate Agents Authority

1

Impo

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to k

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diff

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Intr

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Buyi

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it for

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Aut

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23

Whe

ther

you

are

a b

uyer

or

a se

ller,

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agen

t m

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prov

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you

with

a

copy

of t

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that

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hav

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ou

requ

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ore

info

rmat

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you

can

con

sult

your

law

yer.

Info

rmat

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is a

lso

avai

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the

Rea

l Est

ate

Agen

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utho

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web

site

: ww

w.re

aa.g

ovt.n

z.

Why

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reem

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emen

t to

the

sel

ler

and,

if it

’s a

ccep

ted,

the

se

ller

sign

s it

and

the

agre

emen

t be

com

es b

indi

ng. If

nece

ssar

y, t

he

selle

r an

d bu

yer

can

nego

tiate

, thr

ough

the

age

nt, u

ntil

the

buye

r an

d se

ller

agre

e on

a p

rice

and

any

cond

ition

s.

Wha

t’s im

port

ant?

You

shou

ld h

ave

a w

ritte

n sa

le a

nd p

urch

ase

agre

emen

t.��

Hav

e yo

ur la

wye

r ch

eck

the

sale

and

pur

chas

e ag

reem

ent

befo

re

��

you

sign

it.

The

buye

r an

d se

ller

can

mak

e ch

ange

s to

the

pric

e an

d co

nditi

ons

��

durin

g th

e ne

gotia

tion

proc

ess.

The

sale

and

pur

chas

e ag

reem

ent

A re

al e

stat

e ag

ent

will

pro

babl

y us

e on

e of

tw

o fo

rms

of s

ale

and

purc

hase

agr

eem

ents

:

Auck

land

Dis

tric

t La

w S

ocie

ty a

nd R

eal E

stat

e In

stitu

te

��

of N

ew Z

eala

nd f

orm

(th

e AD

LS f

orm

).

Rea

l Est

ate

Inst

itute

of

New

Zea

land

for

m (

the

REI

NZ

form

).

��

Wha

t’s im

port

ant?

Hav

e yo

ur la

wye

r ch

eck

the

sale

and

pur

chas

e ag

reem

ent

befo

re

��

you

sign

it.

As c

urre

ntly

dra

fted

, the

re a

re s

ome

key

diff

eren

ces

betw

een

the

��

REI

NZ

and

ADLS

sal

e an

d pu

rcha

se f

orm

s of

whi

ch y

ou n

eed

to b

e aw

are.

You

r la

wye

r ca

n ex

plai

n th

e di

ffer

ence

s to

you

and

may

adv

ise

you

to u

se o

ne o

f th

ese

form

s in

pre

fere

nce

to t

he o

ther

.

Your

sal

e an

d pu

rcha

se a

gree

men

t sh

ould

incl

ude

the

follo

win

g:

The

nam

e(s)

of

the

selle

r(s)

and

buy

er(s

).

��

The

addr

ess

of t

he p

rope

rty.

��

The

type

of

title

(fr

eeho

ld, l

ease

hold

etc

).��

The

chat

tels

tha

t ar

e to

be

sold

with

the

pro

pert

y (e

.g.

Whi

tew

are,

��

drap

es, t

elev

isio

n ae

rial).

The

pric

e.

��

The

rate

of

inte

rest

tha

t th

e bu

yer

mus

t pa

y on

any

ove

rdue

pay

men

ts.

��

The

depo

sit

that

the

buy

er m

ust

pay.

��

The

date

on

whi

ch t

he a

gree

men

t w

ill b

ecom

e un

cond

ition

al if

��

ther

e ar

e co

nditi

ons.

The

sett

lem

ent

date

(th

e da

te t

he b

uyer

pay

s th

e re

mai

nder

of

the

��

amou

nt f

or t

he p

rope

rty, u

sual

ly t

he d

ay w

hen

the

buye

r ca

n m

ove

in

to t

he p

rope

rty)

.

Any

cond

ition

s th

e bu

yer

wan

ts f

ulfil

led

befo

re t

he c

ontr

act

is a

gree

d.��

RE

SID

EN

TIA

L P

RO

PE

RT

Y S

AL

E A

ND

PU

RC

HA

SE

AG

RE

EM

EN

TS

GU

IDE

45

Cond

ition

s in

the

doc

umen

t

The

buye

r w

ill u

sual

ly w

ant

to h

ave

som

e or

all

of t

he fol

low

ing

cond

ition

s fu

lfille

d be

fore

the

con

trac

t is

agr

eed.

Title

sea

rch

��

– th

is is

usu

ally

don

e by

the

buy

er’s

law

yer

to c

heck

w

ho t

he le

gal o

wne

r of

the

pro

pert

y is

and

to

see

if an

yone

els

e

has

any

clai

m o

ver

the

prop

erty

.

Fina

nce

��

– th

is r

efer

s to

the

buy

er a

rran

ging

pay

men

t, no

rmal

ly

a lo

an, b

y a

spec

ified

dat

e.

Valu

atio

n re

port

��

– no

rmal

ly r

equi

red

by a

lend

er, t

his

repo

rt is

an

estim

ate

of t

he p

rope

rty’s

wor

th o

n th

e cu

rren

t m

arke

t.

Land

Info

rmat

ion

Mem

oran

dum

(LI

M)

repo

rt

��

– pr

ovid

ed b

y th

e lo

cal

coun

cil,

this

rep

ort

prov

ides

info

rmat

ion

on t

hing

s su

ch a

s ra

tes,

bu

ildin

g pe

rmits

and

con

sent

s, d

rain

age

and

plan

ning

.

Bui

ldin

g In

spec

tion

repo

rt

��

– th

ese

are

beco

min

g m

ore

com

mon

and

hel

p de

term

ine

how

sou

nd th

e bu

ildin

g is

and

wha

t mig

ht n

eed

to b

e re

paire

d.

Engi

neer

’s r

epor

t ��

– si

mila

r to

the

abo

ve b

ut m

ore

focu

sed

on t

he

sect

ion

and

stru

ctur

e of

the

pro

pert

y.

Sal

e of

ano

ther

hom

e ��

– th

e bu

yer

may

nee

d to

sel

l the

ir ho

me

in

ord

er t

o bu

y an

othe

r.

Gen

eral

or

stan

dard

cla

uses

A sa

le a

nd p

urch

ase

agre

emen

t al

so in

clud

es c

laus

es t

hat

set

out

gene

ral o

blig

atio

ns a

nd c

ondi

tions

. It

help

s to

und

erst

and

wha

t th

ese

mea

n as

you

will

nee

d to

com

ply

with

the

m. Ex

ampl

es m

ay in

clud

e:

acce

ss r

ight

s ��

– w

hat

acce

ss t

he b

uyer

can

hav

e to

insp

ect

the

pr

oper

ty b

efor

e se

ttle

men

t.

defa

ult

by b

uyer

��

– th

e bu

yer

may

hav

e to

com

pens

ate

the

selle

r

e.g.

inte

rest

pay

men

ts.

defa

ult

by t

he s

elle

r ��

– th

e se

ller

may

hav

e to

com

pens

ate

the

buye

r e.

g. a

ccom

mod

atio

n co

sts.

insu

ranc

e ��

– en

surin

g th

e pr

oper

ty r

emai

ns in

sure

d un

til t

he s

ettle

men

t da

te a

nd o

utlin

ing

wha

t w

ill h

appe

n if

any

dam

age

does

occ

ur.

Your

law

yer

shou

ld e

xpla

in t

hese

cla

uses

. If

you

wan

t to

mak

e ch

ange

s

to a

ny o

f th

ese

clau

ses,

you

sho

uld

ask

your

law

yer

to d

o th

is b

efor

e

you

sign

the

agr

eem

ent.

Whe

n do

es the

buy

er p

ay the

dep

osit

and

the

fu

ll am

ount

?

Whe

n th

e se

ller

and

buye

r ha

ve a

gree

d on

all

aspe

cts

of t

he s

ale

and

purc

hase

agr

eem

ent,

a de

posi

t (u

sual

ly o

f 5

-10%

of

the

sale

pric

e) is

pa

id t

o th

e re

al e

stat

e ag

ent

by t

he b

uyer

. Th

is m

oney

is in

itial

ly h

eld

in

the

age

nt’s

tru

st a

ccou

nt.

The

agen

t us

ually

tak

es t

heir

com

mis

sion

fro

m t

he d

epos

it w

hen

the

cont

ract

bec

omes

unc

ondi

tiona

l. Th

is is

agr

eed

betw

een

the

selle

r an

d th

e ag

ent

as s

et o

ut in

the

age

ncy

agre

emen

t2.

The

selle

r sh

ould

mak

e su

re t

hat

the

depo

sit

is la

rge

enou

gh t

o co

ver

the

agen

t’s c

omm

issi

on.

The

buye

r pa

ys t

he r

emai

nder

of

the

amou

nt f

or t

he p

rope

rty

on t

he d

ay

of s

ettle

men

t, us

ually

thr

ough

the

ir la

wye

r. Th

e se

ttle

men

t da

y is

usu

ally

th

e da

te w

hen

the

buye

r ca

n m

ove

into

the

pro

pert

y.

Bef

ore

the

sale

and

pur

chas

e ag

reem

ent

beco

mes

unc

ondi

tiona

l and

if

the

sale

doe

sn’t g

o ah

ead

beca

use

som

e of

the

con

ditio

ns h

aven

’t

been

met

, the

buy

er m

ay b

e en

title

d to

hav

e th

e de

posi

t re

fund

ed in

ful

l.

How

ever

, onc

e th

e of

fer

beco

mes

unc

ondi

tiona

l you

won

’t b

e ab

le t

o

get

your

dep

osit

back

if y

ou c

hang

e yo

ur m

ind

for

any

reas

on.

2

Ref

er t

o th

e R

eal E

stat

e Ag

ents

Aut

horit

y’s

New

Zea

land

Res

iden

tial p

rope

rty

agen

cy a

gree

men

t gu

ide.

RE

SID

EN

TIA

L P

RO

PE

RT

Y S

AL

E A

ND

PU

RC

HA

SE

AG

RE

EM

EN

TS

GU

IDE

67

Cond

ition

al��

ref

ers

to t

he s

ale

and

purc

hase

agr

eem

ent

havi

ng a

set

of

cond

ition

s th

at a

re t

o be

met

, suc

h as

the

buy

er’s

cur

rent

hou

se b

eing

so

ld, a

bui

ldin

g in

spec

tion

bein

g ca

rrie

d ou

t, or

fina

nce

bein

g se

cure

d.

Unc

ondi

tiona

l ��

refe

rs t

o w

hen

all c

ondi

tions

in t

he s

ale

and

purc

hase

ag

reem

ent

have

bee

n m

et.

It’s

impo

rtan

t to

und

erst

and

that

whe

n a

sale

and

pur

chas

e ag

reem

ent

beco

mes

unc

ondi

tiona

l it

is le

gally

bi

ndin

g an

d th

e tr

ansf

er o

f ow

ners

hip

mus

t ta

ke p

lace

.

Can

I can

cel t

he a

gree

men

t if

I cha

nge

my

min

d?

You

cann

ot c

ance

l a s

ale

and

purc

hase

agr

eem

ent

just

bec

ause

you

hav

e ha

d se

cond

tho

ught

s ab

out

buyi

ng o

r se

lling

the

pro

pert

y co

ncer

ned.

In g

ener

al, o

nce

you

have

sig

ned

a sa

le a

nd p

urch

ase

agre

emen

t an

d

the

cond

ition

s se

t ou

t in

it h

ave

been

met

, you

will

hav

e to

go

ahea

d w

ith

the

sale

/pur

chas

e of

the

pro

pert

y.

Wha

t if

my

agen

t or

som

eone

rel

ated

to

them

wan

ts

to b

uy the

pro

pert

y?

If yo

ur a

gent

, or

anyo

ne r

elat

ed t

o th

em, w

ants

to

buy

your

pro

pert

y,

by la

w, t

hey

mus

t ge

t yo

ur w

ritte

n co

nsen

t to

do

this

.

Mor

e in

form

atio

n on

thi

s si

tuat

ion

can

be f

ound

in t

he C

onfli

ct o

f In

tere

st F

act

She

et, a

vaila

ble

from

ww

w.rea

a.go

vt.n

z or

by

calli

ng

08

00

forR

EAA

(0

80

0 3

67

73

22

).

Wha

t ca

n I e

xpec

t fr

om a

n ag

ent?

The

agen

t w

orks

for

and

is p

aid

by t

he s

elle

r. Th

e ag

ent

mus

t th

eref

ore

carr

y ou

t th

e se

ller’s

inst

ruct

ions

(as

set

out

in t

he a

genc

y ag

reem

ent)

and

act

in t

he in

tere

sts

of t

he s

elle

r. Ag

ents

als

o ha

ve c

lear

re

spon

sibi

litie

s to

buy

ers

even

tho

ugh

they

are

rep

rese

ntin

g th

e se

ller.

Whe

n yo

u ar

e bu

ying

a p

rope

rty, a

sk t

he a

gent

que

stio

ns.

Be

spec

ific

abou

t w

hat

you

wan

t to

kno

w.

All a

gent

s ar

e bo

und

by t

he C

ode

of P

rofe

ssio

nal C

ondu

ct a

nd C

lient

C

are,

issu

ed b

y th

e R

eal E

stat

e Ag

ents

Aut

horit

y. U

nder

the

Cod

e,

agen

ts h

ave

to d

eal f

airly

and

hon

estly

with

all

part

ies.

The

Cod

e se

ts t

he m

inim

um s

tand

ard

expe

cted

fro

m a

gent

s an

d ac

ts

as a

ref

eren

ce p

oint

for

dis

cipl

ine

thro

ugh

Com

plai

nts

Asse

ssm

ent

Com

mitt

ees

that

the

Aut

horit

y ad

min

iste

rs.

A co

py o

f th

e C

ode

of P

rofe

ssio

nal C

ondu

ct a

nd C

lient

Car

e is

ava

ilabl

e fr

om w

ww

.rea

a.go

vt.n

z or

by

calli

ng 0

80

0fo

rREA

A (0

80

0 3

67

73

22

).

Doe

s a

buye

r ha

ve to

use

an a

gent

to

buy

prop

erty

?

It is

up

to t

he s

elle

r to

dec

ide

if th

ey u

se a

rea

l est

ate

agen

t to

sel

l the

ir pr

oper

ty.

They

may

dec

ide

not

to u

se a

n ag

ent

and

to s

ell p

rivat

ely.

If t

he

selle

r is

usi

ng a

n ag

ent(

s), t

he b

uyer

will

nee

d to

use

the

age

nt(s

) to

buy

th

e pr

oper

ty.

Wha

teve

r yo

u do

, it’s

rea

lly im

port

ant

to u

se y

our

law

yer

at e

ach

step

.

RE

SID

EN

TIA

L P

RO

PE

RT

Y S

AL

E A

ND

PU

RC

HA

SE

AG

RE

EM

EN

TS

GU

IDE

89

Who

pay

s th

e ag

ent?

Rea

l est

ate

agen

ts in

New

Zea

land

wor

k on

beh

alf

of s

elle

rs a

nd it

is t

he

selle

rs w

ho p

ay t

he a

gent

s. A

n ag

ent

who

is m

arke

ting

a pr

oper

ty o

n be

half

of a

sel

ler

cann

ot a

sk a

buy

er t

o pa

y fo

r th

eir

serv

ices

.

Bec

ause

the

age

nt is

eng

aged

and

pai

d by

the

sel

ler,

the

agen

t do

es

not

and

cann

ot h

ave

the

sam

e du

ty t

o a

buye

r as

the

y do

to

the

selle

r.

Wha

t is

a b

uyer

s’ a

gent

?

Buy

ers’

age

nts

are

com

mon

in s

ome

othe

r co

untr

ies.

The

y ar

e ag

ents

w

ho a

re e

mpl

oyed

by

buye

rs t

o lo

cate

pro

pert

ies

and

som

etim

es t

o ne

gotia

te p

urch

ases

on

the

buye

r’s b

ehal

f. If

you

em

ploy

a b

uyer

s’

agen

t yo

u sh

ould

stil

l hav

e a

writ

ten

agen

cy a

gree

men

t an

d w

ill h

ave

to

pay

for

the

ir se

rvic

es.

Mor

e in

form

atio

n on

buy

ers’

age

nts

can

be f

ound

in t

he B

uyer

s’ A

gent

Fa

ct S

heet

, ava

ilabl

e fr

om w

ww

.rea

a.go

vt.n

z or

by

calli

ng 0

80

0fo

rREA

A

(08

00

36

7 7

32

2).

Wha

t if

ther

e’s

a pr

oble

m?

If yo

u ar

e co

ncer

ned

abou

t th

e co

nduc

t of

a r

eal e

stat

e ag

ent,

you

shou

ld

in t

he fi

rst

inst

ance

dis

cuss

any

con

cern

s yo

u ha

ve w

ith t

he a

gent

or

thei

r m

anag

er.

Agen

ts a

re r

equi

red

to h

ave

in-h

ouse

com

plai

nts

reso

lutio

n pr

oced

ures

.

If th

is d

oes

not

wor

k or

if y

ou d

o no

t w

ish

to g

o th

roug

h th

is c

hann

el,

you

can

com

plai

n di

rect

ly t

o th

e R

eal E

stat

e Ag

ents

Aut

horit

y.

Mor

e in

form

atio

n on

the

Aut

horit

y’s

com

plai

nts

proc

ess

can

be f

ound

at

ww

w.rea

a.go

vt.n

z or

by

calli

ng 0

80

0fo

rREA

A (0

80

0 3

67

73

22

) an

d re

ques

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vera

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of

help

an

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can

go

to, i

nclu

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:

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Rea

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has

the

spe

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alin

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s

in r

elat

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to r

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wor

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your

law

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Com

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Con

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ww

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affa

irs.

govt

.nz

NZ

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Soc

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Con

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build

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Real Estate Agents Authority

PO Box 25371, Wellington 6146

Phone: 0800forREAA (0800 367 7322)

Fax: 04 815 8468

Email: info@reaa.govt.nz

Website: www.reaa.govt.nz

To the best of the Real Estate Agents Authority’s knowledge, the information in this guide is accurate at the date shown below. However, the requirements on which this information is based can change at any time and the most up-to-date information is available at www.reaa.govt.nz [Version 1.0, 17 November 2009].

Cert no. SCS-COC-001912