Buying commercial property in New Zealand often involves
a more complex process than buying a residential property. It requires careful due diligence, rather than simply agreeing to a price. While it can be a rewarding investment, not all buyers have the knowledge to navigate the process.

Before you Sign.

It is common practice for the seller’s real estate agent to prepare the Agreement. However, having a lawyer review it before signing can help avoid issues later.

By involving a lawyer early and seeking specialist advice on matters like GST, finance, and insurance, you can avoid costly mistakes and ensure your investment is sound.

Key Considerations.

  1. Form of the Agreement

    Most sales use standard ADLS and REINZ forms, though bespoke agreements may sometimes be used.

  2. Who is the Buyer?

    Choosing the right ownership structure—individual, company, or trust—has legal and tax implications.

  3. GST Considerations

    Most sales are zero-rated for GST, but mixed-use properties may have different implications. We will advise if specialist tax advice is required.

  4. Deposit Requirements

    Clarifying when the deposit is payable, and any conditions attached to it.

  5. Lease

    If the property has an existing lease, ensuring the terms align with what’s in the agreement.

  6. Chattels and Fixtures

    Confirming what items are included in the sale and document them to avoid disputes.

  7. Warranties

    Sellers must provide key assurances, such as building compliance. If inaccurate, buyers may have legal recourse.

  8. Conditions of the Agreement

    Buyers often require conditions like due diligence, finance, insurance, and professional reports before finalising the purchase.

By addressing these factors early, you can ensure a smoother transaction and avoid potential risks. You can learn more about the key considerations here or get in touch with our property team about your situation.

By involving a lawyer early and seeking specialist advice on matters like GST, finance, and insurance, you can avoid costly mistakes and ensure your investment is sound.

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