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


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


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
09 360 2376

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 

Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited