November 25, 2025
Category:
Articles
More Kiwis are choosing to buy or sell property privately, often to save on commission or simplify the process. Private sales can offer flexibility, but they also come with added responsibility, especially when it comes to the sale and purchase agreement. This is a legally binding contract, and mistakes here can lead to delays, disputes, or financial loss.
Whether you're buying or selling, here are some of the most common contract missteps we see in private property transactions, and how you can avoid them.
One of the most frequent issues is relying on an old or generic contract template found online. The standard ADLS/REINZ Sale and Purchase Agreement is updated regularly to reflect changes in legislation and best practice. Using an outdated version can leave both parties exposed, especially if key clauses around finance, due diligence, or chattels are missing.
What to do: Always use the latest version and have your lawyer review it before signing. This ensures your agreement reflects current law and includes the protections you need.
Conditions are the safety nets of a property contract. Common examples include finance approval, LIM reports, building inspections, and title checks. Without them, you may be legally committed to the sale, even if serious issues arise later.
A purchaser must take all steps reasonably necessary to satisfy their conditions. A finance condition for example is not a “get out of jail free card” – if genuine attempts have not been made to satisfy those conditions, purchasers can be compelled to complete the agreement.
What to do: Be specific. Each condition protects you in a different way. For example, a LIM report reveals council records, while a finance clause gives you time to confirm lending. Your lawyer can help tailor these to your situation and ensure they’re worded clearly.
Disputes often arise over what’s included in the sale, especially when it comes to appliances, curtains, or outdoor features. If it’s not listed in writing, it’s not guaranteed.
What to do: List all inclusions and exclusions clearly. That spa pool might seem obviously included - until you find it’s not!
In private sales, the handling of the deposit can be unclear. Who holds it? When is it paid? What happens if the deal falls through? Without clear terms, there is a risk of delays or disputes, especially if the deposit is paid directly to the vendor rather than held in a solicitor’s trust account.
What to do: Agree in writing that the deposit will be held in a solicitor’s trust account until settlement or until all conditions are met.
Every contract includes key dates, for finance, LIM, settlement, and possession. Missing these can void the agreement or trigger penalties.
What to do: Track all deadlines carefully. Your lawyer can help you manage timeframes and avoid unintended consequences.
Buyers, lawyers, and banks all rely on accurate, timely information. Even small errors (like a misspelled name or incorrect property description) can cause delays or complications.
What to do: Double-check all details and keep communication clear. Your lawyer can coordinate with other parties to keep things moving smoothly.
It’s tempting to sign on the spot to ‘secure the deal’ but contracts are hard to change once signed. We often assist clients who’ve committed too early and missed key protections.
What to do: Get legal advice before signing. A quick review can save you from costly surprises and ensure the contract reflects your intentions.
Private sales can work well when the contract is clear, current, and legally sound. Whether you're buying or selling, early legal advice is the best way to protect your interests and ensure a smooth transaction.
Thinking about a private property sale? Our property team can review your agreement, clarify your conditions, and make sure everything’s covered, so you can move forward with confidence.
