Document background
The Letter of Agreement Between Buyer and Seller of Land is a fundamental document in New Zealand property transactions, typically used as an initial binding agreement before proceeding to a full sale and purchase agreement. This document is particularly valuable in situations where parties wish to formally document their intentions and key commercial terms while allowing time for due diligence, finance arrangements, and other conditions to be satisfied. The agreement is governed by New Zealand property law and must comply with the Property Law Act 2007, Land Transfer Act 2017, and other relevant legislation. It includes essential elements such as party details, property description, purchase price, deposit arrangements, settlement terms, and any specific conditions that must be met. While not as detailed as a full sale and purchase agreement, this letter of agreement provides legal protection for both parties and serves as a foundation for the final transaction documentation.
