Articles: Residential Property

Has the Sun Set on Sunset Clauses?

‘Off-plan’ sale and purchase agreements are attractive to both vendors and purchasers.

The vendor bears the risk that the cost to complete the project increases after the agreement has been signed, however, by locking in the purchaser to a fixed price, they can predict sales revenue reasonably accurately before development begins, satisfying their funder that it is economically viable and helping them to secure finance.

Although the purchasers bear the risk of the development taking longer to complete than expected, leaving their deposit tied up for this period, it allows them to enter the market at the today’s price with the hope that the property will have increased in value by the time they move in.

These agreements typically include ‘sunset clauses’.


Home Loan Changes: Skip the ‘Avo on Toast’ If You Want a House!

Following the implementation of new responsible lending rules in December, the news has been full of stories about the ways that our updated Credit Contracts and Consumer Finance Act (CCCFA) has impacted ordinary people.

Whether they are spending $187 on Christmas presents at Kmart, too much on a gym membership, or visiting their parents too often, mortgage applicants are being declined from all directions as banks struggle to abide by these new rules. Instead of protecting them from predatory lending, they’re restricting their access to necessary, even urgent, loans.


Buying, Selling & Renting Properties under Red Traffic Light rules

On January 23, 2022, the government announced a nationwide move to the ‘Red’ COVID-19 Traffic Light System.

Open homes and private property viewings can continue under the new system, however there are additional requirements to abide by.


Buying and selling houses during the Covid-19 pandemic

Despite the global pandemic, New Zealand’s property market has been buoyant with house prices continuing to rise. With relatively low interest rates, many New Zealanders are taking the opportunity to cash in or upgrade to a bigger or newer property.

To prevent setbacks, most Agreements for Sale and Purchase contain covid-19 clauses that addresses how conditions and settlement should occur if the alert level changes. But what happens if an Agreement does not include such a clause?


Healthy Homes & Landlord Responsibilities

Winter is here, and so too are the Government’s healthy homes standards, which just hit a major milestone this week. As of the 1st July 2021, landlords must ensure their rental properties meet these standards within 90 days of starting or renewing a new tenancy.