Technically, no. But it’s strongly recommended! The Sale and Purchase Agreement is the most important document in the whole process — it sets the rules for your deal. Once you sign, it’s legally binding.

• We can make sure the right conditions are included (finance, LIM, building inspection, etc).

• We can check the title for issues (like cross-lease restrictions).

• We can protect you from clauses that may put you at a disadvantage.

👉 Getting us involved before you sign is often the difference between a smooth purchase and costly stress later.

Start with these basics:

• Deposit: Check your KiwiSaver, First Home Grant eligibility, and savings.

• Budget: Factor in not just the price, but ongoing costs (mortgage, insurance, rates, maintenance).

• Pre-approval: A mortgage broker can help you understand your true buying power.

• Team: Line up a lawyer and broker before you go house-hunting so you’re ready to act fast.

Common conditions include:

• Finance approval

• LIM report

• Builder’s inspection

• Solicitor’s approval of the title

• Drug testing

• Due diligence clause

⚠️ Beware: You must use reasonable endeavours to satisfy conditions. You can’t just decide later that you’re not happy. This is one reason why it’s important to have a lawyer check things early.

We recommend most buyers should allow $4,000–$8,000 outside their deposit for LIMs, inspections, valuations, lawyer fees, insurance, and settlement adjustments. For peace of mind, a high-end buffer of $10,000–$14,000 covers most scenarios and possible a couple of attempts at properties.

Some costs are paid upfront, others (lawyer fees and rates apportionment) are due at settlement.

Banks may also offer cashback or credits toward some fees, which may cover or reduce your cash requirements.

Detailed Breakdown

Here’s a realistic guide for NZ buyers as of October 2025:

1. LIM (Land Information Memorandum) – $250–$600

• Paid directly to the council when ordering.

• Standard LIMs take up to 10 working days; urgent LIMs cost more.

2. Building / pre-purchase inspection – $350–$1,200

• Optional, depending on property size, age, or if it’s a new build.

• Includes structural, roof, and general building checks.

3. Meth / environmental testing – $150–$500

• Optional for older homes or rental properties.

4. Bank / lender valuation – $1,300–$1,500

• Banks often require a full registered valuation for mortgage approval.

5. Lawyer – $2,300–$4,000 (including GST)

• Covers reviewing agreements, preparing settlement documents, liaising with the bank, and guiding you through the legal process.

6. Legal disbursements – ~$350+

• LINZ registration fees, Landonline searches, courier costs, etc.

7. Mortgage / lender fees – $0–$500

• Bank establishment or processing fees. Not subject to GST.

8. Home & contents insurance (first year) – $1,000–$3,000+

• Must be in place from settlement day. Cost depends on region, property type, and value.

9. Rates apportionment – $200–$2,000+

• If the vendor prepaid council rates, you reimburse your share on settlement.

A cross-lease means you and the other owners share ownership of the land and then lease your section of it back from the group.

• The lease sets rules about what you can and can’t do. Sometimes, for instance, the rules don’t permit pets.

• Often you’ll need neighbour consent for alterations or external changes.

• Cross-leases are more complicated than freehold titles, and can limit your flexibility.

• These restrictions can also affect resale value.

👉 Always have your lawyer review the lease.

KiwiSaver funds can help you contribute to your property purchase, but there are a few important points to know:

1. Timing matters:

   • Withdrawals can take several weeks to be approved and processed.

   • You can’t always use the funds to pay the deposit under the agreement immediately.

   • If the funds can’t be applied to the deposit, they are applied on settlement to the balance due instead.

2. Using KiwiSaver funds beyond the purchase:

   • You cannot withdraw more than you need for the property purchase.

   • Your lawyer provides an undertaking to your KiwiSaver provider that all withdrawn funds will be applied to the purchase. Any excess must be returned to the provider — you can’t pocket the difference.

Why this matters: Involving a lawyer early ensures the timing of KiwiSaver withdrawals aligns with the contract and that the funds are applied correctly to your purchase price.

Many first-home buyers get confused about the difference between the deposit stated in the Sale & Purchase Agreement and the deposit required by the bank:

• Deposit under the agreement: This is what the contract says you need to pay to secure the property. It might be, say, 5% of the purchase price.

• Deposit required by the bank: Lenders usually want a higher deposit before approving your mortgage. It might be, say, 20% of the purchase price.

Important distinction: The bank’s deposit requirement does not have to be paid as the deposit to the seller. It simply represents your total contribution to the purchase price, alongside the deposit under the agreement. The difference between the two (whether made up of cash or KiwiSaver funds) is typically applied to the balance due on settlement rather than upfront.

This is why it’s crucial to understand how your cash, KiwiSaver, and contractual deposit all fit together.

Your lawyer and broker can help make sure your contributions meet the bank’s requirements while satisfying the contract.

Short answer: In most cases, yes.

Why: A LIM (Land Information Memorandum) tells you things about the property that you can’t see just by looking — such as:

• Whether the house has final code compliance for building work.

• If there are flooding, erosion, or subsidence risks.

• Outstanding rates or council requisitions.

• Zoning and future developments in the area.

👉 Even if you’re buying bare land, a LIM is still important. It can show:

• Flood hazards or instability.

• Council restrictions or resource consents required before you can build.

• Whether essential services (water, sewerage, power) are connected.

A LIM is about peace of mind — helping you avoid expensive surprises.

A Land Information Memorandum (LIM) should reflect all the council-approved features and consents for a property. If something at the property doesn’t appear on the LIM – for example, a deck, garage, or extension – it can mean those works were done without council consent.

This can have important implications:

• Risk of council action: The council could require the works to be removed, altered, or properly consented (which may not always be possible).

• Insurance issues: Unconsented works may not be covered by insurance.

• Finance issues: Your bank may refuse to approve lending on the property if it includes unconsented works.

• Resale problems: Future buyers may be reluctant to purchase a property with unconsented works, limiting your pool of potential buyers or lowering the property’s value.

Sometimes unconsented works are minor and low-risk, but other times they can cause significant problems.

We can help you understand the implications in your situation and discuss your options before you commit to the purchase.

Generally, under the standard agreement:

• The seller has until settlement (the moment the money changes hands) to move out. Often they’re shifting on the day itself.

• They must give you vacant possession — meaning the property is free of people, belongings, and rubbish.

• They don’t have to deep clean. The agreement only requires the property be left “reasonably tidy.”

👉 If you want the house professionally cleaned, you need to have that written as a clause in the agreement.