Buying or Selling - the new REINZ Form

Friday, 11 December 2009 00:00

Recently the Real Estate Institute of New Zealand (“REINZ”) drafted a new standard form Sale and Purchase Agreement. We urge our clients to be cautious when using the new REINZ Agreement and seek advice from us before you sign.

The REINZ Sale and Purchase Agreement attempts to create a plain english agreement which can be more easily understood by the public and real estate agents. Unfortunately the new form has significant differences to the Auckland District Law Society Agreement which has been in use for the past 20 years.

These differences contain serious potential pitfalls for both Vendors and Purchasers.

To avoid being a test case, and achieve a smooth property transaction, we strongly advise that you obtain legal advice before entering into an REINZ Agreement for Sale and Purchase. The property team at Langley Twigg are always available and happy to discuss the pros and cons of this new form in greater detail with you.