Articles by Matthew Gilligan
We understand that the agreement will be made available to real estate agents in New Zealand for use over the forthcoming months.
For over twenty years, the buying or selling of property in New Zealand has been recorded using a standard agreement produced jointly by Auckland District Law Society and the Real Estate Institute of New Zealand. The agreement is now in its 8th edition having been improved over the intervening years to take account of changes in the way in which property is bought and sold in New Zealand and to take account of changes in the law over that time.
The ADLS/REINZ 8th edition Agreement is tried and tested. It has been the subject of many court cases in which its provisions have been scrutinised and upheld. It has been taught in our law schools and been the subject of much academic commentary.
The ADLS/REINZ 8th edition Agreement has a proven track record, its provisions are easily understood and it helpfully regulates the way in which practitioners deal with each other and third parties through the course of a sale or purchase of land. It is a “no surprises” agreement.
On the other hand the new REINZ agreement introduces new concepts, rules of interpretation and time frames which may be unexpected, particularly if you have previously bought and sold property using the ADLS/REINZ 8th edition Agreement.
So, if you are planning to either buy or sell property in the near future, please contact us for legal advice prior to signing any agreement.
In most situations, we will advise the continued use of the ADLS/REINZ 8th edition Agreement until such time as the provisions of the REINZ agreement become well known, judicially interpreted and well settled. This may take a considerable period of time.
Don't be persuaded to use the plain English format of the new agreement. Plain English wording can be just as problematic as complex legal wording, particularly where the agreement has not had the benefit of many years of use.
Remember that all agents have access to both forms of agreement so this should not present any difficulty or delay in the buying and selling process.
Please contact our team if you have any further queries about this letter or you require any further detailed information.
Thanks GRA for ALL your help today :) You have such a great way of making your clients feel comfortable with the whole process...even though it sounds so confusing at times to me :( I would have to say that I definitely feel a WHOLE lot better now...and I have a better understanding of what is still needed to be done and what we will have to continue to do... THANK YOU :) THANK YOU :) THANK YOU :) THANK YOU - Annie Illingworth
Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.Learn More