Selling Your Home in NZ – Jessica and Brian’s Story

Jessica and Brian had lived in their family home for nearly twelve years. It was where their children took their first steps, birthdays were celebrated, and countless dinners shared between friends.

But as the kids grew older and new work opportunities arose in another city, they decided that it was time to sell.

When Should You Call a Lawyer?

They found a real estate agent recommended by their niece, Mary, who had previously helped them purchase their dream home. The agent provided them with a standard agency agreement.

Unsure about the process, Brian asked:

“Do we need a lawyer?”

The real estate agent smiled.

“Yes – your lawyer will guide you through the agency agreement and everything else, from accepting an offer right through to settlement.”

With that in mind, Jessica and Brian contacted Compass Lawyers, who helped explain the agreement’s terms and conditions before they signed.

They then returned the signed agency agreement to the agent, prepared the house for marketing, and soon received an offer from a buyer who loved the home just as much as they once had. The offer came in the form of an Agreement for Sale and Purchase of Real Estate.

Vendor Warranties and Undertakings

Before signing the Agreement, Compass Lawyers also explained somethings many sellers overlook — vendor warranties, undertakings and the chattel list. These are the promises that a seller makes to the buyer about the property.

For example, Jessica and Brian had to confirm that:

• The chattels listed in the Agreement were on the property and in reasonable working order,

• All fixtures and installations were owned by then and free of any charges

• There were no outstanding rates or water charges on the property.

• They had not given any consents or waivers affecting the property since the date of the Agreement

• They had not received any notice or demands relating to the property, and

• There was nothing else that needed to be disclosed

So, when Brian briefly suggested taking the stylish pendant lights to their new home, Jessica reminded him:

“If it’s on the chattel list, it stays”

Understanding their obligations, gave Jessica and Brian the confidence that they were meeting their obligations.

The Deposit

Once the Agreement became unconditional, the buyer paid the deposit — usually 10% of the purchase price. The money was safely held in the real estate agency’s trust account, typically for 10 working days unless an early release was agreed upon.

Compass Lawyers also explained to Jessica and Brian that the deposit forms part of the total purchase price payable on settlement day.

Water and Rates Adjustments

One thing that didn’t surprise Jessica and Brian was that the rates and water fees will be adjusted between the buyer and seller on settlement so that each party only pays their fair share.

Compass Lawyers handled these calculations for Jessica and Brian, including arranging a final water reading. The only thing that Jessica and Brian had to do was to pay the rates as per their normal schedule.

Final Inspection

Before settlement, the vendor is required to let the buyer carry out a final inspection of the property to ensure that:

• The property is in the same condition as when the agreement was signed

• All listed chattels and fixtures that remain at the property are in reasonable working order, and

• All works agreed upon have been carried out.

The inspection went smoothly.

Repayment of Mortgage

Like many homeowners, Jessica and Brian still had a mortgage on the property.

Before settlement, Compass Lawyers helped contact the bank to obtain a repayment figure. So that on settlement day, the sale proceeds are used to pay all outstanding obligations in order to meet the seller’s undertaking and obligations.

Settlement

As settlement approached, Compass Lawyers prepared the final documents Jessica and Brian needed to sign.

On settlement day, the lawyers coordinated with the buyer’s lawyers. Once everything was completed, Compass Lawyers helped confirm settlement with the real estate agent and authorised the release of keys.

Shortly after, the agent called the buyer.

“The keys are ready for collection.”

What Jessica and Brian Learned

Selling a home in New Zealand involves more than simply finding a buyer. It requires a careful handling of a series of legal and financial steps.

From vendor warranties to mortgage repayment and final settlement, each steps ensures that the transfer of ownership happens smoothly and safely.

With the right legal guidance, what originally felt complicated became organised and straightforward.

As they packed their last box and handed over the keys, Brian looked back and smiled.

“Twelve years of memories,” he said.

Jessica nodded.

“And a smooth sale — thanks to getting the lawyer involved early.”

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Disclaimer

Information on this site is for general information only and does not constitute legal advice. Please seek independent legal advice for your specific situation.  Use of this site does not create a solicitor-client relationship.