As Is Where Is Basis Deed Of Sale Template for New Zealand

An As Is Where Is Basis Deed Of Sale is a specialized property transfer document that allows you to purchase property in its current condition without traditional vendor warranties or representations about the property's state. Unlike standard property sales, this deed explicitly excludes most vendor guarantees about the property's condition, structural integrity, or compliance with building standards, placing the risk of undiscovered defects on you as the purchaser.

When do you need this document?

You'll typically encounter this type of sale when purchasing distressed properties, mortgagee sales, or properties sold by liquidators. Following natural disasters like the Christchurch earthquakes, many properties required this sale structure due to uncertain building conditions or earthquake damage. Investment properties requiring significant renovation, heritage buildings with known structural issues, or estate sales where executors want to limit liability also commonly use this deed format. Real estate agents often recommend this structure when properties have obvious defects or when vendors cannot provide standard warranties about the property's condition.

Key legal considerations

The most critical aspect is understanding that you accept all risks associated with the property's condition, including hidden defects, structural problems, or non-compliance with building codes. While vendors cannot completely exclude liability for deliberate misrepresentation under the Fair Trading Act 1986, this deed significantly limits your recourse for condition-related issues. You should conduct thorough due diligence including building inspections, LIM reports, and engineering assessments before signing. The deed must clearly define what "as is where is" means, specify known defects, and outline any limited warranties that remain. Consider professional valuation given the increased risk profile of such purchases.

Legal requirements in New Zealand

Under the Property Law Act 2007, all property transfers must comply with statutory formalities including proper execution and Land Transfer Act 2017 registration requirements. The Contract and Commercial Law Act 2017 governs the underlying sale agreement, while the Fair Trading Act 1986 still requires honest disclosure of known material facts. If real estate agents are involved, they must comply with Real Estate Agents Act 2008 disclosure obligations. The deed must be properly witnessed and signed, include accurate property descriptions matching the certificate of title, and specify GST implications under the Goods and Services Tax Act 1985 if applicable. Despite the "as is" nature, vendors cannot exclude liability for fraudulent misrepresentation or deliberately concealed defects that materially affect the property's value or safety.