Information for prospective buyers
The Unit Titles Act 2010 and its Regulations now require sellers to provide a wider range of information to prospective buyers. They also give buyers additional rights if these information requirements are not met.
Pre-contract disclosure statement
Before entering into a sales and purchase agreement, sellers must provide a wider range of information in the pre-contract disclosure statement. This includes financial statements, maintenance, weather tightness and related information, and body corporate general meeting minutes for the last 3 years.
A different set of information is required if the pre-contract disclosure statement relates to an ‘off-the-plans’ sale. (Many pre-contract details are not available at the off-the-plans stage).
The information is listed below in the ‘Pre-settlement disclosure statement’ section.
The body corporate must keep the necessary records to allow for pre-contract and pre-settlement disclosure statements. As most of the information disclosed is held by the body corporate, it is important that these details are readily available to the seller.
If the body corporate does not have some of the required information, the pre-contract disclosure statement should highlight this. It should also note the specific information that is not provided, and the reason the information is not included (for example, that it does not exist, or despite reasonable efforts, cannot be found).
Information required in a pre-contract disclosure statement
Guide to pre-purchase disclosure
Read the new legislation relating to pre-contract disclosure statements(external link) — New Zealand Legislation
Pre-settlement disclosure statement
Additional information is now required once the agreement for sale and purchase has been entered into, and before the settlement of the sale. A seller must provide a pre-settlement disclosure statement after the sale and purchase agreement is entered into, and before settlement. The pre-settlement disclosure statement must be provided at least 5 working days before the settlement date.
New information is required as part of the pre-settlement disclosure statement for an ‘off-the-plans’ purchase:
- the details of any contract that will bind the body corporate or the unit owner after the settlement date
- the details of any obligation arising from the decision of a court or tribunal that will bind the body corporate or the unit owner after the settlement date
- a copy of the long-term maintenance plan
- a copy of the written agreement setting out the body corporate manager’s terms of employment or engagement
- a copy of the body corporate operational rules that apply to the body corporate, including any amendments, revocations, or additions to the rules that have been made by the body corporate but that do not yet have effect
- a copy of the minutes of the most recent general meeting of the body corporate.
The pre-settlement disclosure statement for off-the-plans sales must include this information, where possible (some of the details in the pre-settlement disclosure statement may not be available for new off-the-plans units).
Information required in a pre-settlement disclosure statement
Read the new legislation relating to pre-settlement disclosure statements(external link) — New Zealand Legislation
Ability to cancel an agreement or delay settlement – pre-contract disclosure
The buyer may be able to delay settlement, or cancel the sale and purchase agreement if the pre-contract disclosure statement is late, not provided, is incomplete or inaccurate. Previously there were no statutory consequences for failing to provide complete and accurate pre-contract disclosure. If a seller has not provided a complete and accurate pre-contract disclosure statement 5 working days before settlement, the buyer can give notice to delay settlement until 5 working days after an accurate and complete pre-settlement disclosure statement is provided.
The following resources are provided to help you understand when you can delay settlement or cancel an agreement.
Disclosure statement example scenarios with visual timelines
Pre-contract disclosure flowchart
Read the legislation relating to pre-contract disclosure cancelling an agreement or delaying settlement(external link) — New Zealand Legislation
Ability to cancel an agreement or delay settlement – pre-settlement disclosure
The buyer may be able to delay settlement, or cancel the sale and purchase agreement, if pre-settlement disclosure is late, not provided, is incomplete or inaccurate. If a seller has not provided a complete and accurate pre-settlement disclosure statement 5 working days before settlement, the buyer can delay settlement until 5 working days after an accurate and complete pre-settlement disclosure statement is provided.
The buyer must give the seller notice if they intend to cancel the sale. This notice provides the seller an opportunity to correct the pre-settlement disclosure statement. If the amended pre-settlement ownership and utility interest statement is complete and accurate, the buyer cannot cancel the agreement under this provision.
The following resources are provided to help you understand when you can delay settlement or cancel an agreement.
Disclosure statement example scenarios with visual timelines
Pre-settlement disclosure flowchart
Read the legislation relating to pre-settlement disclosure cancelling an agreement or delaying settlement(external link) — New Zealand Legislation
Access the Pre-contract disclosure statement and the Pre-settlement disclosure statement (standard and Off the plans) please go to ‘Forms and resources’ page.
Last updated: 17 October 2024
