Reading a Sale & Purchase Agreement without the headache.

The Agreement for Sale and Purchase (S&P) is the most important document in any New Zealand property transaction. Yet most sellers sign off on it with little more than a glance at the price and settlement date. Understanding what it actually says — before offers start coming in — can protect you from costly surprises.

What is the Agreement for Sale and Purchase?

The S&P is the legally binding contract between you (the vendor) and the buyer. In New Zealand, the standard form used is published jointly by the Auckland District Law Society (ADLS) and the Real Estate Institute of New Zealand (REINZ). It sets out:

• The agreed purchase price and deposit amount
• Settlement date — when ownership (and money) transfers
• Conditions (finance, building report, LIM, etc.)
• Chattels included in the sale
• Any vendor warranties and disclosure obligations

Once all conditions are satisfied and both parties have signed, the agreement is unconditional and legally binding. Walking away at that point can result in serious financial penalties.

The conditions to watch carefully

Finance condition

The buyer typically has 5–10 working days to obtain finance approval. If they can't, they can cancel under this clause and their deposit is returned. As a vendor, you want this window to be as short as possible while still being realistic. A buyer who hasn't pre-arranged finance before making an offer is a higher risk.

Building inspection condition

The buyer engages a registered building inspector to assess the property. If material defects are found, the buyer can either cancel the agreement or negotiate a reduction in price. As a vendor, consider getting your own building report done before listing — this gives you transparency, allows you to fix minor issues, and removes uncertainty at offer time.

LIM condition

A Land Information Memorandum (LIM) is a report from your local council showing consents, drainage, zoning, and any other known issues with the land. Buyers routinely include a LIM condition. If something unexpected appears, it can derail the sale. Order your own LIM early (around $350–$400 from council) and review it before listing.

Chattels: what stays and what goes

Chattels are items included in the sale — typically fixed floor coverings, window treatments, light fittings, and any appliances specifically listed. The S&P form has a standard chattel list; anything added must be listed, and anything you want to take must be explicitly excluded.

Common disputes arise over: heat pumps, dishwashers, curtains, letterboxes, and garden sheds. The rule of thumb: if it's fixed to the property, it stays unless excluded in writing.

Settlement date

Settlement is when the buyer pays the balance of the purchase price and takes legal possession. In New Zealand, 30–45 days is standard, though buyers sometimes request longer. Your solicitor coordinates with the buyer's solicitor to ensure everything is in order before funds transfer.

You are expected to leave the property in the same condition as when the agreement was signed, fair wear and tear excepted. The buyer has the right to a pre-settlement inspection — typically in the last two working days before settlement — to confirm this.

Get your lawyer involved early

You don't need a lawyer to accept an offer, but you should have one review the agreement before you sign anything. Costs are typically $1,000–$1,800 for vendor conveyancing. This is not optional — a property transaction is one of the largest financial events of your life and a small legal fee is cheap insurance.

Your agent can manage the paperwork process, but they cannot give you legal advice. If you haven't yet chosen an agent, read our guide on how to choose a real estate agent in NZ. That's your solicitor's job.