APIA Blog

RSS Feed

Don't take legal advice from RE agents

Thursday, October 15, 2020

Here is a reminder not to allow the property professional you work stray out of his lane: 

An APIA member recently bought a property with a tenant in situ. She did not require vacant possession and was quite prepared to keep the existing tenant on the property. Like most reasonable buyers, this member asked for a copy of the tenancy agreement, rent and management records. Neither the agent nor the vendor could locate any of these documents. The agent, in what we assume to be an attempt to push the deal through, wrote on the sale and purchase agreement the tenant’s name and, next to it, “new tenancy agreement upon settlement”. The agreement is now unconditional.

The buyer now finds herself with an unenforceable clause. 

Tenancy agreements run with the land, not the owner. The new owner and the tenant are both bound by the existing tenancy agreement. Signing a new agreement now could put the APIA member in breach of termination rules, disadvantage her as to her right to increase rent, inspect etc. This is an instance where a real estate agent had given legal advice to a buyer when he is not qualified to do so. 

We recommend all buyers to involve their solicitors throughout the purchasing process include having agreements fully reviewed before signing.



Recent Posts


Tags

sublease financial advisers act data security Question and answer letting fee water bill negotiation Keith Hay Homes interest limitation Case study covid-19 buying rules warm up new zealand Editor's Choice insulation housing package development Q&A partners return investment strategy nzpif interest rates letting election2020 Tribunal case study management gluckman report government short-term rental worksafe extractor fan trespass cat finance debt enforcement Level 4 tenancy issues RBNZ business tenancy tribunal insurance robert kiyosaki advice khh meth contamination asbestos fixed-term tenancy opes partners Zodiak Management Standards New Zealand Holler ask an expert HHS initio quiet enjoyment rent arrears re agent landlord investor Must knows bad tenant cash-flow property short term rental education reserve bank commerce commission rta barfoot and thompson building airbnb Landlording Property (Relationships) Act sale and purchas recycling equity beginner investor ventilation TCIT heater smoke alarm positive cash flow p lab mindset minor dwelling yield house prices early termination personal growth rta reform interest deductibility subdivision bankruptcy inflation brightline CoreLogic property value twg report skill shortage retaliatory notice boarding house rent control tenancy services unitary plan productivity apia winz kiwibuild termination income trademe housing bubble property maintenance property apprentice heating speculator meth cgt warren buffett off the plan wins lvr ring-fencing travel bubble sale and purchase daikin Investment tip scotney williams will equity wealth creation principal and interest clnz rtaa2020 tenant HHGA Gluckman buyer's agent parry v inglis How to mortgage DTI trust structure legal ocr Kris Pedersen Mortgages and Insurance Guest blog lockdown watercare auckland privacy HSWA market interest only debt to income maintenance auckland council property cycle relationship Market report Investor story tax heat pump election 2017 rent rent increase market rent Jeff Bezos bond form television RTAA 2019 LIM Sponsored post ird first home buying CCC rental market rental wof shower dome holiday house property management damage bond shortland chartered accountants anti-social behaviour anz housing affordability Must know inspection buying banking legal cost renovation capital gain

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo