Vendors and purchasers should be aware of the recent changes that have been made to the standard form Agreement for Sale and Purchase of Real Estate (ASP).
In summary the important changes to note are as follows:
- Due to the changes in legislation affecting public holidays, Waitangi Day and ANZAC Day have been Monday-ised. This means they are now recorded as being non-working days in the ASP. This needs to be taken into account when calculating conditional dates/notice periods.
- If the ASP contains a Land Information Memorandum (LIM) condition the parties should be aware that the non-working days in the period from 24 December to 5 January have been extended to 15 January. This is to align with the time allowed to Council for issue of the LIM. Timing should be considered when signing ASPs towards the end of the year.
- Previously the vendor was to make available “keys to all exterior doors”. However, as many doors are now locked by electronic devices rather than by key the ASP has been amended to provide that the vendor make available “keys to all exterior doors that are locked by key” and “electronic door openers to all doors that are opened electronically”.
- Legislation introduced on 1 October 2015, in respect to new tax laws which allow for the collection of information to ensure purchasers and vendors who buy and sell property for profit pay their fair share of tax, require tax statements to be lodged at Land Information New Zealand prior to settlement. The ASP has been amended to include the tax statement definitions and relevant clauses.
- The vendor’s warranty to the purchaser that the chattels are in reasonable working order now includes “all plant, equipment, systems or devices which provide any services or amenities to the property, including, without limitation, security, heating, cooling or air-conditioning”. Vendors should be aware of this as if the warranty is not correct it will need to be amended or deleted.
- Where a unit title property is being purchased, the purchaser now expressly acknowledges when signing the ASP that a pre-contract disclosure statement has been provided to them. If the pre-contract disclosure statement has not been provided to the purchaser then this acknowledgement should be deleted. Vendors should note that the ASP includes a warranty provision from the vendor that the information contained in the pre-contract disclosure statement is correct and complete.
- If Overseas Investment Act (OIA) consent is required then the OIA condition check box on the front page of the ASP must be completed. If the condition box is not completed then the purchaser warrants that the purchaser does not require OIA consent.
If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:
Erin Maher
emaher@farry.co.nz
09 379 0055 or 03 477 8870
The information contained in this publication is intended as a guide only. It does not constitute legal advice and should not be relied upon as such. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.