Off-Plan New Builds NZ: Contract Checks Before You Sign

Start with timing

settled.govt.nz says buying off a plan generally means paying a deposit upfront, with the rest due when the build is complete. It also warns that lenders may place limits on loans for off-plan buyers, and that rates, lending criteria or completion timing can change before settlement. Read its property options guidance.

Read the agreement

A sale and purchase agreement is legally binding. settled.govt.nz says buyers should always get legal advice before signing, and should understand the price, title type, deposit, chattels, conditions, settlement date and default terms. Start with its sale and purchase guide.

1. Finance condition

   Make sure your finance condition matches the off-plan pathway. Ask whether approval must cover the specific development, title timing, body corporate costs, valuation and long settlement.

2. Sunset clause

   Ask who can cancel, when they can cancel, whether extensions are allowed, and what happens to your deposit if the development is delayed, redesigned, sold or not completed.

3. Changes

   Check whether the developer can alter floor area, layout, materials, appliances, landscaping, parking, common areas or finishing standards without your consent.

4. Settlement

   Ask what evidence triggers settlement. That may include title, practical completion, code compliance, insurance, final inspection, body corporate setup or another contract milestone.

Check build evidence

Off-plan buying shifts some due diligence from what you can see today to what the contract promises for completion. Ask for source documents rather than relying only on renders, brochures or verbal summaries.

1. Written contract. Building Performance says residential building work costing $30,000 or more including GST must have a written contract. Read contracts for your building project.
2. Implied terms. Building Performance says implied contract terms apply to residential building work costing $30,000 or more, including oral or incomplete contracts. See implied contract terms.
3. Code compliance. Building Performance says the owner must apply to the building consent authority for a code compliance certificate after consented work is completed. Check the CCC guidance.
4. Warranty trail. Ask for warranties, maintenance manuals, producer statements, records of building work, appliance details and after-handover contact points.
5. Inspection rights. Confirm whether you can inspect before settlement, who fixes defects, and how defects are recorded.

Shared property checks

Many off-plan townhouses and apartments involve shared land, common areas, body corporate rules, residents society rules, easements or maintenance obligations. The cheapest-looking home is not always the cheapest home to own.

1. Ask for the title structure, draft rules and shared-cost schedule.
2. Check parking, storage, bins, access, visitor parking and pets.
3. Ask how insurance, exterior maintenance and common services are paid.
4. Confirm whether levies or residents society fees are estimated or fixed.
5. For rentals, Tenancy Services says landlords and tenants of a unit title property must follow body corporate rules. Check the rights and responsibilities.

Investor checks

Investors should separate marketing yield from tax, lending and tenancy obligations. IRD says that for property sold on or after 1 July 2024, the bright-line test looks at whether the bright-line end date is within two years of the bright-line start date. Start with IRD's bright-line guidance, then get advice for your dates and structure.

1. Tenancy Services says landlords are responsible for meeting and maintaining healthy homes standards. Read its healthy homes guidance.
2. Model rent, vacancy, rates, insurance, levies and management fees.
3. Ask if the lender treats the purchase as investor lending from approval.
4. Check when settlement, tenancy advertising and handover can happen.
5. Keep tax advice separate from developer or supplier marketing.

Contract checklist

1. Get the sale and purchase agreement reviewed before signing.
2. Confirm deposit amount, stakeholder, interest and refund rights.
3. Check finance, valuation, insurance and settlement timing with your lender.
4. Ask for plans, specifications, inclusions, exclusions and variation rights.
5. Understand sunset dates, extension rights and cancellation rights.
6. Ask what completion evidence is required before settlement.
7. Review body corporate, residents society, easement and shared-cost documents.
8. For investors, check tenancy, tax and lending settings independently.