Important changes to New Zealand law that affect everyone buying or selling property in New Zealand
Thursday 17 January 2019
Over the last 6 months, 2 major law changes have come into effect;
The first being the Overseas Investment Act (OIA), 23rd of October 2018, which in short requires anybody wishing to purchase property in New Zealand to be either a New Zealand Citizen or have an Australian or Singaporean exemption. This does not mean that others from off-shore cannot purchase property in New Zealand, they do, however, have to satisfy the OIA that their intention to purchase meets the requirements of the new Act. The standard ADSL Sales and Purchase Agreement has been amended to reflect this law change.
The second is the Anti Money Laundering Act (AML), taking effect the 1st of January 2019 requiring all real estate agents to collect proof of identity and proof of address when signing an Authority to list a property for sale. The purchaser is also required to provide the same to their solicitor prior to settling on the property. Examples of proof of identity are; a Passport, New Zealand Firearms or Drivers License or embossed Bankcard. Examples of proof of address are; a utility bill or other such invoice or statement addressed to your home address. Trusts will be required to supply a Deed of Trust and Companies will be required to supply details of the company i.e. company’s office printout showing Directors and Shareholders.
Any change can be inconvenient until it becomes ‘the norm’ but rest assured, our team at Summit will advise and help you along the way - we look forward to doing business with you in the future.
Wishing you a happy and prosperous New Year!
