REA Guides For Buyers
Understanding the Guides Every Buyer Should Read
The Real Estate Authority is the government body that regulates real estate professionals in New Zealand. It publishes aset of plain-English guides explaining how buying property here actually works, what the documents you sign mean, andwhat you are entitled to expect from anyone holding a licence.
We are required to make these guides available to you, and we are glad to. They are genuinely useful, and a buyer whohas read them asks better questions.
REA Guides
What follows is each guide summarised in our own words, with a note on where our work sits alongside it and answers to the questions we are asked most often. The guides themselves live on the Authority’s website, so you are always reading the current version rather than a copy that has quietly gone out of date.
Your Real Estate Buying Journey
Published by the Real Estate Authority via settled.govt.nz
What It Covers
This guide maps the whole process end to end, from the first thought of buying through to the day you move in. It breaks the journey into four stages.
1. Thinking of buying, and finding a property
Agree your goals and budget. Understand what you can genuinely borrow and what the additional costs will be. Build your support crew, meaning a lawyer, an insurer, a bank or mortgage broker, and often a property inspector. Learn the language of methods of sale and ownership types before you start attending open homes.
2. Researching the property
Once you have found somewhere, find out as much as possible before making an offer. Order a record of title, which will show any restrictions over the property. Understand the natural hazards and issues in the area. If another buyer is interested, understand how a multi-offer process works and ask the agent to explain it.
3. Making an offer
The process varies with the method of sale. You can attach conditions to an offer, change it any time before it is accepted, and include an expiry date. You may go through this several times before you succeed. Do not make an offer before seeking legal advice.
4. Settling and moving in
Confirm finance with your lender, who will usually want proof of insurance before settlement. Meet every condition by its date. Plan for settlement day, including the pre-settlement inspection. On the day itself a sequence of things must happen between both lawyers and both banks, so you may not get the keys until late. Plan to move the following day.
Knowing The Method Of Sale
Each method of sale changes what a sensible offer looks like.
- Advertised price. The seller sets a price. You can offer above or below it and negotiate. There is no deadline.
- Deadline sale. The seller sets a date and you can offer at any point before it. They may indicate a price, and you can still offer above or below.
- Negotiation. Used where market value is hard to estimate. Buyers offer what they believe the property is worth, at anytime.
- Tender. A confidential written offer submitted before an end date. The seller does not have to accept the highest offer, or any offer, and you may get no chance to negotiate afterwards, so submit your best offer.
- Tender unless sold prior. The property can sell before the deadline. Register your interest and ask to be told if someone else offers early.
In every case you can attach conditions to your offer, and the seller can attach terms of their own, such as the settlement date. If you cannot meet a condition or need an extension, speak to your lawyer and the agent immediately rather than letting the date pass.
Where We Fit
Most of what this guide describes is work somebody has to do, and for many of our clients that somebody is us. We take on the research, the title and LIM review, the hazard checks and the agent liaison, and we coordinate the lawyers and inspectors rather than leaving you to project-manage a team of specialists around a full-time job.
Reading the method of sale correctly matters just as much. A tender and a deadline sale look similar on a listing and call for completely different approaches. We advise on what to offer, which conditions to attach, how long you genuinely need for finance and due diligence, and when a property is worth walking away from.
Common Questions
Do I need a Buyers Agent if I follow this guide myself?
No. Plenty of people buy well on their own, and the guide exists precisely so that buyers can. What we add is time, market evidence and the experience of having done it many times before, which matters most when a property is competitive or complicated.
How early should I talk to a lawyer?
Before you make any offer, and ideally before you start looking seriously. The Authority is unambiguous on this point.
I am buying from overseas. Does this still apply?
Yes, with additions. People who have recently migrated may not be permitted to buy immediately, or may need consent from the Overseas Investment Office. Talk to us early if that is your situation, because it affects both eligibility and timeframes.
What actually happens on settlement day?
Your lawyer, the seller’s lawyer and both banks work through a sequence of steps before the property becomes yours. It often takes most of the day, which is why the guide suggests planning to move in the day after rather than the day itself.
New Zealand Residential Property Sale and Purchase Agreement Guide
Published by the Real Estate Authority. Read the guide at rea.govt.nz.
What It Covers
The sale and purchase agreement is the contract that actually buys the house. It is legally binding, it must be in writing, and it sets out everything about the sale: the price, the chattels, any conditions, and the settlement date. This guide explains what is in it, what happens once you have signed, and what to do if something goes wrong.
What The Agreement Should Contain
- The names of both parties and the address of the property.
- The type of title, for example freehold or leasehold.
- The price, and any deposit you must pay.
- Any chattels included, such as whiteware or curtains.
- Any specific conditions, and how many working days you have to satisfy them.
- The settlement date, being when you pay the balance and usually when you can move in.
- The interest rate payable on anything overdue.
It also carries general obligations covering access to inspect before settlement, insurance until settlement, what happens if either party defaults, and eligibility to buy property in New Zealand.
One line in the guide is worth reading twice.
In most cases the real estate professional is working for the seller of the property, although they must treat the buyer fairly.
That is the regulator describing the ordinary shape of a property transaction. The agent at the open home is doing their job properly and is required to be fair to you, but they are not there to represent you.
Before You Sign
The Authority requires that you are given a copy of this guide before you sign a sale and purchase agreement, and that you are asked to confirm in writing that you received it. It also advises checking the agreement with a lawyer every time, even when a standard form is being used.
Conditions You May Want To Include
An unconditional offer has nothing left to satisfy. Most buyers include one or more conditions that must be met by a set date. The common ones are:
- Title search. Your lawyer confirms who legally owns the property and whether anything sits over it, such as a caveat or an easement.
- Finance. Arranging payment, usually bank approval for a mortgage.
- Valuation report. An independent view of what the property is worth.
- LIM report. The council’s record of what it knows about the property.
- Building report. A qualified inspection of the condition of the building.
Where We Fit
Because the selling agent acts for the seller, somebody needs to be acting for you. That is the reason this fi rm exists. We are engaged by the buyer and act only for the buyer, so the advice you get on price, conditions and terms is given with your interests as the only consideration.
In practice that means recommending what to offer and why, which conditions genuinely protect you, and how long you realistically need. Your lawyer gives you the legal advice on the contract itself. We make sure the commercial terms going into it are sound before it reaches them.
Common Questions
Can I really negotiate the conditions, or is the form fixed?
You can negotiate. The standard form is a starting point, not a take-it-or-leave-it document, and you can add clauses to cover particular circumstances.
What does unconditional actually mean?
Every condition has been satisfi ed or waived and you are committed to the purchase. It is the point of no return, which iswhy the work before it matters so much.
If the agent has to treat me fairly, is that not enough?
Fair treatment and representation are different things. The agent must not mislead you and must disclose known defects. They are still working to get the best outcome for the seller.
What if I cannot meet a condition in time?
Speak to your lawyer and the agent as soon as you know, not on the day it falls due. Extensions are often possible when asked for early.
New Zealand Residential Property Agency Agreement Guide
Published by the Real Estate Authority. Read the guide at rea.govt.nz.
What It Covers
An agency agreement is the contract between a client and a real estate agency. It sets out what the agency will do and what it will be paid. The Authority’s guide is written for sellers, since listing a property is the more common arrangement, but the principles apply to any agency agreement, including the one you would sign with us.
What it tells you:
- It is a legally binding contract, and diff erent types allow diff erent things.
- What is in it is negotiable, including the timeframe, the fees and any expenses.
- You should read and understand it, and take legal advice, before you sign.
- Your agency must verify your identity to meet obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
- You must be given a copy of the signed agreement within 48 hours.
- Your contract is with the agency, not the individual who signs you up.
Checking Who You Are Dealing With
The guide opens with advice we would repeat to anyone. Check that whoever you are dealing with is licensed, using the public register at rea.govt.nz, and see whether any complaints have been upheld against them in the last three years. Dealing with an unlicensed person makes it considerably harder to get help if something goes wrong.
Before You Sign
As with the sale and purchase guide, your real estate professional is legally obliged to give you a copy of this guide before you sign an agency agreement, and to obtain your written confirmation that you received it.
Where We Fit
When you engage us, you sign a Buyer’s Agency Agreement. It is the mirror image of the arrangement this guide describes, appointing us to act for you as the buyer rather than appointing an agency to sell on your behalf.
Everything in the guide still holds. Our fees and terms are set out in writing before you commit, we will verify your identity as the law requires, and we would far rather you took the agreement to your lawyer than signed it in the room. We are on the public register, and we would encourage you to look us up.
Common Questions
Why am I being given a guide about selling?
Because it is the Authority’s guide to agency agreements generally, and its examples are written for sellers. The rules itdescribes about taking legal advice, negotiating terms and receiving a copy within 48 hours apply equally to the agreementyou sign with us.
Why do you need to see my ID?
The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 requires it of every real estate agency. It is not discretionary and we cannot begin work without it.
Am I contracting with Tamzin, or with the company?
With the company. That is standard for any agency agreement.
Where do I find your fees?
They are set out plainly in our Services and Fees document, which we are happy to provide at any point, and in full in the Buyer’s Agency Agreement itself before anything is signed.
Questions After Reading The Guides?
If you would rather talk something through than work it out on paper, that is what we are here for. Most of our clients come to us somewhere between considering it and already looking, and there is no stage that is too early.
