Legality Barristers & Solicitors

22/09/2026

🏠 SELLING A TENANTED PROPERTY IN NZ? WHAT VENDORS NEED TO KNOW BEFORE SIGNING A SALE AGREEMENT
A question that often comes up for property owners is:
“My property is rented. Can I sell it and simply give the tenant notice to move out?”
The answer is yes, the property can be sold — but whether vacant possession can be given depends very much on the type of tenancy.
🔑 1. PERIODIC TENANCY
If the property is subject to a periodic tenancy, the landlord can generally terminate the tenancy by giving the tenant at least 90 days’ written notice.
There is also an important shorter notice period where the property has already been sold.
If there is an unconditional Agreement for Sale and Purchase and that agreement requires the vendor to give the purchaser vacant possession, the landlord can generally give the tenant at least 42 days’ written notice.
So, if a purchaser wants to move into the property on settlement, the timing of the agreement becoming unconditional, the tenancy notice and the settlement date all need to work together.
⚠️ Signing an agreement requiring vacant possession without first checking whether vacant possession can actually be delivered can create problems for the vendor.
🏡 2. FIXED-TERM TENANCY
A fixed-term tenancy is different.
The fact that the property has been sold does not normally allow the landlord to terminate a fixed-term tenancy early.
For example, if a property is sold in September but the tenant has a fixed-term tenancy running until the following February, the vendor generally cannot simply give 42 or 90 days’ notice and require the tenant to leave before February.
The practical options may instead include:
• selling the property subject to the existing tenancy, with the purchaser becoming the new landlord;
• arranging settlement after the fixed term has properly ended;
• negotiating with the tenant to mutually agree to an earlier termination; or
• making the sale agreement conditional upon an acceptable arrangement being reached with the tenant.
If a fixed-term tenancy of more than 90 days is approaching its expiry and the landlord does not want it to continue as a periodic tenancy, notice generally needs to be given during the statutory notice period — between 90 days and 21 days before expiry.
📄 WHY THIS MATTERS WHEN DRAFTING THE SALE AGREEMENT
Before promising vacant possession in an Agreement for Sale and Purchase, vendors should check:
✅ Is the tenancy periodic or fixed-term?
✅ When does any fixed term expire?
✅ Has the sale agreement become unconditional?
✅ Does the sale agreement actually require vacant possession?
✅ What notice can legally be given to the tenant?
✅ Is there enough time between the agreement becoming unconditional and settlement?
A vendor should not assume that because the property has been sold, the tenant can automatically be required to leave.
Sometimes the better option is to sell the property with the tenancy continuing and allow the purchaser to take over as landlord.
The key is to deal with the tenancy before the sale agreement is drafted or before vacant possession is promised.
⚖️ Property transactions and tenancy arrangements need to be coordinated carefully. A poorly chosen settlement date or vacant-possession clause can leave a vendor contractually obliged to deliver an empty property when the tenancy law does not allow them to do so.
*******NOTE: The above is true as of September 2026 - please check with your lawyer as there could be future legislative changes.****

02/12/2025

https://www.rothbury.co.nz/resources-support/client-newsletters/full-cover-april-2025-domestic/buying-and-insuring-in-a-flood-zone/

Floods are the most frequent natural disaster in New Zealand *. Many properties lie in or near flood zones. Consequently, insurers exercise caution when dealing with flood-risk homes.

19/11/2025

Master Build Guarantee vs. Building Act: Advice for Buyers of New-Build Homes

When purchasing a new-build home directly from a builder or developer in New Zealand, understanding your protections is essential. The Building Act provides statutory warranties, but opting for a Master Build Guarantee (if available) offers additional peace of mind. Here's a comparison of the two and advice for buyers of new-build homes.

Master Build Guarantee
The Master Build Guarantee is a voluntary, third-party warranty that provides protection for up to 10 years. Coverage details can vary depending on the specific guarantee offered by the builder or developer, so it’s essential to review the terms carefully. Typical coverage may include:

Potential Coverage:
1. Protection against structural defects (e.g., foundations, weather-tightness).
2. Defects in materials and workmanship for a defined period (e.g., 1–2 years).
3. Financial protection for loss of deposit or non-completion of work if the builder goes out of business.
3. Temporary accommodation costs during remedial work (if applicable under the terms).

Advantages:
1. Provides protection even if the builder or developer ceases trading.
2. Includes a third-party claims process managed by the guarantee provider.
3. Often transferable to new owners, adding value to the property.
Important Considerations:
- Coverage, limits, and exclusions vary depending on the specific Master Build Guarantee product.
- The builder or developer must properly register the guarantee before construction begins.
- Buyers should confirm with the builder or developer that the guarantee is valid and active before completing the purchase.

Building Act Implied Warranties
The Building Act provides automatic statutory warranties for all residential building work in New Zealand. These warranties last for up to 10 years and apply whether you are building a home yourself or purchasing directly from a builder or developer.
Coverage:
1. Work must comply with the Building Code and be carried out competently using suitable materials.
2. Defects identified within the warranty period must be remedied by the builder.

Advantages:
1. No additional cost to the buyer.
2. Applies automatically to all residential building work.

Limitations:
1. Claims rely on the builder or developer being in business; if they cease trading, enforcement becomes impossible.
2. For unresolved issues, buyers may need to pursue legal action, which can be costly and time-consuming.

Advice for Buyers of New-Build Homes
1. Check for a Master Build Guarantee:
2. Ask your builder or developer whether a Master Build Guarantee is included in your purchase agreement. If it is not offered, inquire about other third-party guarantees they may provide.
3. Review the terms and conditions of any guarantee carefully to understand what is covered and excluded.
4. Verify Registration:
Ensure that the builder or developer has properly registered your property under the guarantee. Without this step, you cannot make a claim later.
5. Inspect Before Settlement:
Before completing your purchase, conduct a thorough inspection of the property to identify any defects or unfinished work. This reduces reliance on post-settlement claims.
6. Understand Your Rights Under the Building Act:
Even without a Master Build Guarantee, you are protected by implied warranties under the Building Act. However, enforcement may require legal action if defects arise after settlement.
7. Plan for Worst-Case Scenarios:
If your builder or developer goes out of business, claims under the Building Act may not be enforceable. A third-party guarantee like a Master Build Guarantee provides additional security in such cases.

Which Should You Rely On?
While statutory protections under the Building Act provide a baseline level of security, they have limitations—particularly if your builder or developer ceases trading. A Master Build Guarantee offers more comprehensive protection and simplifies claims by involving an independent third party. However, it’s crucial to confirm that your new-build home is covered by such a guarantee before completing your purchase.

Conclusion
For buyers of new-build homes, having both statutory protections under the Building Act and a Master Build Guarantee ensures maximum security against construction risks. Always confirm that any guarantees are valid and registered before settlement to avoid future complications. By taking these proactive steps, you can protect yourself from potential financial losses and stress down the line.

23/10/2025

When a New Title Isn’t a New Build
Why Property Files and LIM Reports Don’t Always Tell the Same Story
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Many buyers get excited when they see that a property’s Record of Title was only recently issued. It can feel like reassurance that the home is new, fully Code-compliant, and trouble-free. But a recent due-diligence review in Auckland showed how misleading that assumption can be — and how easily the details in a Property File and a LIM report can be misunderstood.

1. The first impression

The property had a freshly issued unit title and a lengthy Property File — hundreds of pages of Council consents, plans, and correspondence. At first glance, it appeared that a building consent might have been granted for recent construction.

2. The reality

A closer look told a different story.

The Council documents related not to new construction but to the conversion of an existing development into a unit-title scheme. The houses themselves had been built many years earlier. What was new was the subdivision plan, survey certification, and administrative approvals needed to create separate titles for each unit.

The LIM Report showed no building consent, no recent works, and therefore no Code Compliance Certificate to verify.
That raised an important question: were there building works that should have required Building Consent but were carried out without one?

In this case, that is precisely what had occurred.

3. Why discrepancies occur

LIM reports and Property Files are both Council documents, but they serve different purposes.
A LIM summarises the Council’s records about a property, including any consents that exist.
A Property File is a compilation of documents held in the property’s record, and sometimes its internal index can list placeholder entries or filenames that resemble consent references even when no such consent was ever issued.


4. Why this matters for purchasers
Misinterpreting Council records can lead to confusion about:
whether Building Consent and subsequently Code Compliance Certificate was required or was the works undertaken without an application for Building Consent;
whether drainage or stormwater upgrades were part of the development.

The key is to look beyond the paperwork — to check what exists on site and what Council has formally approved.

Hence, when purchasing property, it is important that — before going unconditional — you review both the LIM and the Property File with a lawyer who is experienced and qualified in this area. It is also wise to have a qualified builder you can contact when needed to clarify technical matters, as Councils are not always helpful and their records are not always accurately or consistently maintained.

28/01/2025

Why a LIM Report is Essential – Even for Brand-New Properties

This is to highlight the importance of obtaining a LIM (Land Information Memorandum) report, even if the property is brand new.

Although, in most cases, vendors will not sell a property without a Code Compliance Certificate (CCC), there are rare instances where vendors attempt to sell without one. Sometimes, CCCs have been declined due to the need for rectification work. Additionally, even if a property has been built to standard and a CCC has been issued, administrative issues could arise, potentially causing problems if left unresolved.

For example, the attached LIM report revealed a concerning situation:

1. The property received a CCC on 15 May 2021.

2. The LIM indicated:
a) Three Resource Consents were granted, but the report stated "Construction Monitoring Underway," despite the house being completed and settlement pending.
b) Under Resource Management, the LIM showed: "Outstanding Requirement: Works not started – Letter sent – Outstanding."

Although the property appeared new and had a CCC, the LIM report raised significant questions. These included whether the resource consent financial contributions had been fully paid or whether there was an administrative oversight by the council.

Such issues could pose problems for the purchaser. If financial contributions were unpaid, the new owner would become liable after settlement. Alternatively, if the issue stemmed from council record-keeping errors, it would still need to be resolved, as it could create complications for the owner when selling the property in the future.

After a stressful day of back-and-forth with the council and vendor, the council reviewed the file and confirmed that the error was on their part. They acknowledged that all outstanding issues had been satisfied by the builder but that, due to disruptions during the COVID period, the council had overlooked updating the property file.

The council confirmed they would correct the records, after which we declared the agreement unconditional.

Key Takeaway:
Although this issue was resolved quickly, in some cases, such problems could be far more serious. This situation underscores the critical importance of obtaining a LIM report, even for a brand-new property. A LIM report ensures the property file is accurate and up to date, and it helps uncover any potential issues before settlement.

Remember, if financial contributions are outstanding, the new owner becomes liable once settlement is completed. Always get a LIM report!

Report

05/08/2024

Many people tend to avoid seeking quality legal advice, opting instead for either no advice or inexpensive options that often fail to adequately address their legal issues. This often leads to significant problems arising well after they enter into contracts.

Additionally, most people are primarily focused on successfully completing a settlement rather than minimizing future risks that may arise from the contract.

05/08/2024

https://www.stuff.co.nz/business/300872711/auckland-man-says-627699-fee-for-property-loan-he-didnt-borrow-is-unfair?fbclid=IwY2xjawEeEnRleHRuA2FlbQIxMQABHTUTSKt105k-QpNG4M0rSMnBd87m0idhbL9C_C5fWlNx-Fu34-CXWowlkQ_aem_bQzYodOeZcmbIokNmx7frw

A South Auckland businessman is warning others to read the fine print after being stung with hundreds of thousands in fees for a property loan.

04/01/2024

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11/10/2023

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07/10/2023

https://i.stuff.co.nz/national/133009329/building-dispute-that-ended-friendship-leaves-couple-on-brink-of-bankruptcy?fbclid=IwAR3GsB-nU5l1lRINKwX-R2RvNyzTlFOJbsATQJTFxl8GpUhK-Fe_qDkTxYU

"I could lose my livelihood, my business, my house," says a man who is legally required to pay for work that wasn't completed by builder he trusted.