Buying Your First Home? Here’s What You Need to Know About the Sale and Purchase Agreement
Buying your first home is a huge milestone, and the legal paperwork can feel just as big. One of the most important documents you’ll sign is the Sale and Purchase Agreement. This legally binding contract sets out everything you and the seller agree to, and at Goodwill Law, we're here to make sure you understand it.
What is a Sale and Purchase Agreement?
A sale and purchase agreement is the legal contract between a buyer and seller. It confirms the agreed price, what is included in the sale, and when settlement (possession) will take place. Once signed by both parties, it becomes legally binding — so it’s essential to read and understand it first.
You should always check the agreement with a lawyer or conveyancer before signing.
Get legal advice throughout the process, not just at the end.
What’s in a Sale and Purchase Agreement?
Here’s what the agreement typically includes:
Your details and the seller’s
The property address and legal description
Type of ownership (e.g. freehold, leasehold)
Purchase price and deposit amount
Settlement date – when you pay the balance and take possession
Chattels – things like whiteware, curtains, heat pumps
Any conditions (e.g. finance, LIM, building report)
Interest rate on overdue payments
Standard rights and obligations of both parties
Vendor warranties
The seller (vendor) gives certain warranties (legal promises) as part of the agreement. These typically include that:
The chattels listed in the agreement will be in working order on settlement day
The vendor has not done any unconsented building work
The vendor is not aware of any outstanding legal disputes, notices or claims affecting the property
The property will be handed over in the same condition it was in when the agreement was signed (fair wear and tear excepted)
Your lawyer will explain these warranties in detail and can help you raise any concerns or negotiate stronger protections if needed.
There’s no one-size-fits-all agreement. Various real estate agencies may use slightly different forms, but the ADLS/REINZ form is the most common. Regardless of the form, always seek legal advice!
Conditions You Can Include
You can make an unconditional offer, or include conditions that must be satisfied before the sale goes ahead. Some common ones are:
Finance: Getting your home loan approved
LIM Report: Council records of the property
Building Inspection: Ensures the house is structurally sound
Toxicology Report: Often used to rule out meth contamination
Valuation Report: A valuation for your bank or peace of mind
Title Search: Legal checks on the record of title
Engineer or Surveyor’s Report
Sale of another property
These conditions must be fulfilled (or waived) within a set timeframe. Your lawyer will help you negotiate and manage these dates.
Chattels vs Fixtures – What’s Included in the Sale?
Fixtures are part of the property (e.g. decks, wired lights) and stay.
Chattels are moveable items (e.g. curtains, appliances) and only stay if listed in the agreement.
Always check the chattels list, and don’t assume anything. If it’s not written in the agreement, the seller can take it.
Standard chattels may include:
Stove or cooktop
Dishwasher
Curtains or blinds
Light fittings
Fixed floor coverings
Heat pump
Heated towel rails
If something’s important to you, get it in writing.
What Happens After Signing?
It’s not over when you sign — here’s what comes next:
You pay the deposit — usually 10% (but this is negotiable). This may be payable when the agreement is signed, or once it becomes unconditional. If you are relying upon access to your KiwiSaver funds in order to pay the deposit, be sure to contact your lawyer prior to making an offer.
You work through the conditions — with your lawyer’s help. Once all conditions are satisfied, the agreement becomes unconditional. From that point, you are committed to the purchase.
Your lawyer prepares for settlement — checking the title, working with your bank, and confirming final payments.
On settlement day, your lawyer transfers the remaining balance to the seller’s lawyer. You get the keys and take legal possession.
Important Legal Protections
Even though the agent works for the seller, they must:
Deal fairly and honestly with you as the buyer
Disclose any known defects with the property
Provide you with a copy of the REINZ Residential Property Sale and Purchase Agreement Guide before you sign, and obtain written confirmation that you’ve received it
Your lawyer will also ensure the agreement complies with the latest version of the ADLS/REINZ Sale and Purchase Agreement, and that settlement is handled correctly, including funds transfer and registration of title via Landonline.
Buying a Tenanted Property?
If the home is currently rented, your agreement must be clear about possession. If you want to move in, the seller must give the tenants the correct legal notice. You should seek legal advice early, as tenanted properties involve extra steps.
Summary for First-Home Buyers
Review the agreement with your lawyer before signing
Negotiate conditions that protect you (finance, inspections, LIM)
Understand what chattels are included – get it in writing
Know your deposit and settlement responsibilities
Be aware of your legal rights – and obligations
Understand the buyer process by reading this Blog or checking out our Property Guide.
Need an estimate of legal costs?
Goodwill Law offers an online fee calculator , no matter whether you are looking for a simple one-off fee or prefer the fixed fee approach, you can get a quick estimate of your conveyancing costs anytime.
At Goodwill Law, we believe in clear, friendly advice for first-home buyers. We’re here to answer your questions, review your agreement, and make sure your property purchase is stress-free. With over 200 five star reviews across our offices, you know you are in good hands.
Contact our team today to get started.