The new version 8 of the ADLS 'Agreement for Sale and Purchase'

A new Version 8 of the ADLS `Agreement for Sale and Purchase has been released. This is what you need to know…

Following the many recent legislative changes in property law, the Auckland District Law Society has released a new version (Version 8) of the Agreement for Sale and Purchase Ninth Edition 2012 (“the Agreement”).

This version incorporates the following recent legislative changes:

• The new Land Transfer Act 2017 (“Land Transfer Act”);
• The amendments to the Anti-Money Laundering and Countering Financing Terrorism Act 2009 (“AML Act”); and
• The amendments to the Overseas Investment Act 2005 (“OIA”).

Land Transfer Act

The Agreement has been amended to use the same terminology as the Land Transfer Act.  By way of example, the front page now provides a space to write the “Record of Title” instead of the “Certificate of Title” identifier.

OIA

A more substantive change has been made to the OIA consent condition contained in clause 10.6 of the Agreement.  This now includes new requirements under the OIA relating to residential land which is now classified as “sensitive” land.

If “yes” is circled on the front page of the Agreement stating that OIA consent is required, and if a date is not inserted as to when this needs to satisfied by, clause 10.6 now provides:

• If the land is residential land (but is not otherwise “sensitive”), a purchaser has 20 working days to confirm that consent has been obtained; and
• If the land is otherwise “sensitive” (as provided under the existing legislation), a purchaser now has 95 working days to confirm that consent has been obtained.  This has been increased from 65 working days under the previous version of the Agreement.

Warnings

The final substantive change is the addition of two warnings on the back page of the Agreement.  These are as follows:

• If a purchaser is not a New Zealand citizen, there are strict controls on the purchase of property in New Zealand; and
• Customer Due Diligence is likely to be required in accordance with the AML Act, and that this should be undertaken prior to the signing of an Agreement.  

We suggest that it is prudent for agents to be aware of these changes, and bring the above warnings to the attention of any vendor or purchaser.