Closing Agreement (Real Estate) for New Zealand

Closing Agreement (Real Estate) Template for New Zealand

A Closing Agreement in New Zealand real estate transactions is a crucial legal document that finalizes the property transfer process between the vendor and purchaser. Operating under New Zealand property law, particularly the Property Law Act 2007 and Land Transfer Act 2017, this agreement documents the final terms and conditions of the sale, confirms satisfaction of all conditions precedent, and outlines the specific mechanics of settlement. It serves as the definitive document ensuring all parties understand their obligations and responsibilities during the closing process, including payment arrangements, document exchanges, and post-settlement requirements.

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What is a Closing Agreement (Real Estate)?

The Closing Agreement (Real Estate) is a essential document used in New Zealand property transactions to facilitate the final stage of property transfers. It is typically prepared after the initial sale and purchase agreement has been signed and all conditions have been met, but before the final settlement occurs. This document is crucial in New Zealand's property law framework, as it provides detailed instructions for settlement, confirms the satisfaction of conditions, and outlines the mechanics of closing the transaction. The agreement ensures compliance with New Zealand's property legislation, including the Property Law Act 2007 and Land Transfer Act 2017, while providing clarity on settlement procedures, payment arrangements, and the exchange of necessary documentation. It serves as the final checkpoint before property ownership transfers from vendor to purchaser.

What sections should be included in a Closing Agreement (Real Estate)?

1. Parties: Identifies and provides full legal details of the seller, purchaser, and any other relevant parties

2. Background: Outlines the context of the agreement, including reference to the original sale and purchase agreement

3. Definitions: Defines key terms used throughout the agreement

4. Property Details: Comprehensive description of the property being transferred, including legal description and title references

5. Purchase Price and Payment: Confirms the final purchase price and details of payment arrangements

6. Conditions Precedent Status: Confirms all conditions from the original sale agreement have been satisfied or waived

7. Settlement Details: Specifies the settlement date, time, and location, including mechanics of closing

8. Pre-Settlement Obligations: Lists all requirements to be completed before settlement by each party

9. Settlement Process: Details the sequence of events for settlement day, including document exchanges and payments

10. Post-Settlement Obligations: Outlines any obligations that continue after settlement

11. General Provisions: Standard legal provisions including governing law, notices, and dispute resolution

12. Execution: Signature blocks and execution requirements for all parties

What sections are optional to include in a Closing Agreement (Real Estate)?

1. Tenant Provisions: Required when the property is being sold with existing tenancies

2. GST Provisions: Required when the transaction involves GST considerations

3. Overseas Investment Provisions: Required when the purchaser is an overseas person under the Overseas Investment Act

4. Body Corporate Provisions: Required for unit title properties

5. Remediation Works: Required when there are outstanding works to be completed post-settlement

6. Vendor Finance: Required when the seller is providing any form of finance to the purchaser

7. Chattels: Required when specific chattels are included in the sale requiring special attention at closing

What schedules should be included in a Closing Agreement (Real Estate)?

1. Schedule 1 - Property Details: Detailed property description, including title references, easements, and encumbrances

2. Schedule 2 - Purchase Price Breakdown: Itemized breakdown of the purchase price, including adjustments and apportionments

3. Schedule 3 - Settlement Checklist: Comprehensive list of items to be delivered or completed at settlement

4. Schedule 4 - Required Documents: List of all documents required for settlement from each party

5. Appendix A - Title Documents: Copies of relevant title documents and plans

6. Appendix B - Transfer Documents: Forms and documents required for property transfer

7. Appendix C - Outstanding Conditions Evidence: Documentation proving satisfaction of all conditions precedent

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Development

Legal Services

Banking and Finance

Property Management

Construction

Investment

Commercial Property

Residential Property

Property Investment

Relevant Teams

Legal

Real Estate

Property Management

Conveyancing

Settlements

Compliance

Risk Management

Finance

Investment

Business Development

Relevant Roles

Property Lawyer

Conveyancing Lawyer

Real Estate Agent

Property Manager

Settlement Officer

Legal Executive

Banking Relationship Manager

Property Development Manager

Investment Manager

Compliance Officer

Real Estate Partner

Property Law Associate

Legal Counsel

Transaction Manager

Due Diligence Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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