Sold As Is Contract Template for New Zealand

A Sold As Is Contract is a legally binding agreement that transfers ownership of goods or property in their current condition, with limited warranties beyond those mandated by New Zealand law. This contract type explicitly states that you are purchasing an item "as is, where is" with all existing faults, defects, and conditions. While this may seem to place all risk on the buyer, New Zealand consumer protection laws still apply, particularly the Consumer Guarantees Act 1993 for consumer transactions.

When do you need this document?

You need a Sold As Is Contract when selling or purchasing used vehicles, second-hand equipment, estate property, or any goods where the condition may be uncertain or impaired. This document is particularly valuable for private sales between individuals, business liquidations, auction purchases, or when selling inherited property. Real estate transactions often use "as is" clauses when properties require significant repairs or when sellers cannot warrant the condition of building systems. Commercial equipment sales, especially machinery or technology that may have operational issues, frequently employ these contracts to limit the seller's liability while ensuring transparent disclosure.

Key legal considerations

Under New Zealand law, even "as is" sales cannot completely exclude all seller obligations. The Fair Trading Act 1986 prohibits misleading and deceptive conduct, meaning you cannot misrepresent the item's condition or hide known defects. The Consumer Guarantees Act 1993 provides certain non-excludable rights for consumer purchases, including that goods must match their description and be of acceptable quality considering the price and circumstances. Your contract must include clear definitions of what "as is" means, detailed descriptions of the item's current condition, and disclosure of any known defects or issues. The Contract and Commercial Law Act 2017 governs the formation and enforcement of these agreements, requiring clear terms, adequate consideration, and genuine consent from both parties.

Legal requirements in New Zealand

New Zealand law mandates specific disclosures and protections that cannot be contracted away. For consumer transactions, the Consumer Guarantees Act 1993 ensures certain quality guarantees remain enforceable regardless of "as is" clauses. The Property Law Act 2007 governs real estate sales and requires specific disclosure obligations for property defects. Your contract must comply with the Fair Trading Act 1986 by providing honest, accurate descriptions without misleading statements. Documentation should include the parties' full legal names and addresses, comprehensive item descriptions, purchase price, settlement terms, and clear statements about inspection rights and disclosure obligations. For significant transactions, consider including clauses for independent inspections, dispute resolution mechanisms, and compliance with relevant industry standards or regulations.