The Auckland District Law Society have released a new edition of the Sale and Purchase Agreement for Real Estate. There have been a number of changes to the agreement. Significantly, improvements have been made to the GST schedule and its associated clauses, to better allow for the agreement to cater to a sale where part of the property comprises a principal place of residence such as a farmhouse or an apartment above a shop.

Though the GST treatment of a sale or purchase should be much clearer now there is still the need for care to be taken to prevent potentially costly unexpected GST consequences.

For this reason we always recommend that you have your lawyer or ourselves review the GST implications of the agreement prior to signing. A quick review and confirmation can prevent unexpected costs at time of settlement.

 

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