The Sale and Purchase Agreement Buyers Guide - Conditions

As a buyer you may be unfamiliar with various conditions that can be in a sale and purchase agreement for a property. There are many and that is why you and the seller employ lawyers to look after your interests.

As a buyer you can add certain conditions into any sales agreement to protect you and ensure you are buying what you think you are - a property without legal or building problems. Here are 4 items every buyer and their lawyer should check:

1. Title: In every agreement clause 6.0 allows the purchaser / purchasers lawyer 10 working days after the date of the agreement to check for any problems with the title.
   
2. LIM Report: The LIM (Land Information Memorandum) is a report that is produced by the relevant local council which provides details relating to the property. It covers a whole range of things including any council known problems with the property such as unpermitted (illegal) building work, whether a code of compliance certificate or building permit was granted, drainage information, zoning information and much more. Clause 10.2 of the sale and purchase agreement allows 15 working days after the date of the agreement for the buyer to obtain and approve (or otherwise) the LIM report.
   
3. Building Report: The purchase of a house in New Zealand is a transaction involving hundreds of thousands of dollars and in our major cities often more than a million dollars. You need to ensure what you are buying does not have costly problems you may be unaware of. A Buyer’s Choice Home Inspections report covers all aspects of the house you are buying and is backed up by Building Inspection Professional Indemnity Insurance in the unlikely event that anything is missed. You have NO insurance for your inspection with Builders Insurance.
   OUR INSPECTIONS INCLUDE:
   Roofs, vents, flashing and trim
   Gutters and downpipes
   Eaves, fascia, and soffits
   Skylights, chimneys, and other roof penetrations
   Decks, steps, porches, walkways, and railings
   Slopes and drainage
   Basements, foundations, and crawlspaces
   Exterior cladding
   Retaining walls, fences, and sheds 
   Garage doors, safety sensors and openers
   Heating systems
   Cooling Systems
   Water heating systems
   Moisture testing
   Plumbing fixtures and fittings
   Electrical panels, meter boxes and fuses
   Insulation and ventilation
   Earthing and bonding
   Fireplaces and hearths 
   And much more!
4. Meth or ‘P’ Testing: A buyer cannot “see” if a house has Meth or ’P’ contamination. A contaminated property can cause serious health problems and in cases of higher contamination the building can be declared unfit for habitation. All A Buyer’s Choice Home Inspectors are trained and qualified to test for Meth or ’P’ contamination. As a minimum every sensible buyer should include these 4 conditions in a sale and purchase agreement for their protection.