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NEWS

Concern about new form of Sale and Purchase Agreement put out by the REINZ

Many of you would by now be aware that there is a new form of Sale and purchase agreement used for selling and buying real estate in New Zealand.  The form has been commisssioned by the Real Estate Institute of New Zealand (REINZ).  There have been a number of negative opinions on the REINZ form and there has been an independent opinion sought by the Auckland District Law Society, (ADLS) who, with the REINZ publish the most recognised form (Current Form) of agrement used in the buying and selling of real estate in New Zealand.  The copyright in the Current Form is held jointly by those institutions.  

Opinion in legal circles tends to be conservative and in the attached link there is the independent opinion commissioned by the ADLS and given by Rod Thomas, an Auckland Barrister, www.adls.org.nz/resources/news-details 

This firm takes the same view as the ADLS and Rod Thomas.  In particular our overriding concern is that while the fact that contracts are drafted by people, will mean that there will always remain uncertainty in the law and therefore with any contract,  the Current Form is tried and tested and there is a significant body of case law already in place in relation to disputes and interpretation on the body of the agremeent.  Would you want to be a test case in relation to a dispute on the new form?  We strongly urge you to use the Current Form if you are undertaking a standard contract in relation to a land purchase.  Also, ask yourself, who benefits from the use of the new form?  Is it you?  What would be the normal risks that you would consider in signing an agreement?  One obvious one is whether it does what it says.  If there is room for interpretation, or more than one view then that is your risk.
 
Naturally, we also recommend that you see us first, and prior to signing anything.
 
Please feel free to contact us.  Our Contact details are above.

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