Clause

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Sample Report

See how Clause analyses a real NZ sale and purchase agreement.

MODERATE RISK

Overall Assessment

This appears to be a standard cross-lease property sale in Grey Lynn, Auckland. While the core terms are typical for the Auckland market, the cross-lease title type introduces several complexities that warrant careful review — particularly around the flats plan status, neighbour consent requirements, and restrictions on alterations.

Property Details

Address

14B Hakanoa Street, Grey Lynn, Auckland 1021

Title

NA52B/419

Legal Description

Flat 2 on Flats Plan 89421

Estate Type

Cross-Lease (Freehold)

Vendor

Margaret Anne Thompson & David James Thompson

Vendor Solicitor

Williams & Associates, Ponsonby

Agent

Sarah Chen, Barfoot & Thompson Grey Lynn

Purchase Price

$1,285,000 NZD

Deposit

$128,500 (10%)

Settlement

20 working days from unconditional date

Detailed Findings

Here's what our analysis found in this agreement. Click on any finding to see more detail.

Defective Flats Plan

The registered flats plan (FP89421) appears to date from 1978 and may not reflect subsequent alterations to the property. If the building footprint has changed since the plan was registered — for example, through additions, a new deck, or a conservatory — the flats plan could be considered "defective".

A defective flats plan can affect your ability to sell, refinance, or insure the property. Your conveyancer should verify whether the current building footprint matches the registered plan.

Has the flats plan been updated since 1978? Does the current building match the registered footprint?

Neighbour Consent for Alterations

As a cross-lease property, any external alterations, additions, or changes to the building require the written consent of the other flat owner(s). This includes changes that might seem minor — fencing, landscaping that affects shared areas, or even painting the exterior a different colour.

This is a significant ongoing restriction that does not apply to freehold properties and is important to understand if you have future plans for the property.

Are there any planned alterations that would require neighbour consent? What is the relationship like between the current flat owners?

No Building Report Condition

The agreement does not include a building report condition (clause 9.4 is marked "No"). For a property built in the 1970s, a pre-purchase building inspection is strongly recommended.

Without this condition, you would have no contractual right to withdraw based on building defects discovered after signing. This is a significant risk for older properties.

Would you recommend adding a building report condition before signing? What are the risks of proceeding without one on a 1970s property?

Heritage Overlay Zone

The property appears to fall within the Auckland Unitary Plan's Special Character Area overlay. This may restrict external alterations, demolition, or new building work beyond what the cross-lease already restricts.

Council consent may be required for changes that would otherwise be permitted. This adds another layer of complexity on top of the cross-lease restrictions.

What specific restrictions does the Special Character Area overlay impose? How does this interact with the cross-lease consent requirements?

Deposit and Settlement Terms

The deposit of $128,500 (10% of the purchase price) is standard for the Auckland market. Settlement at 20 working days from the unconditional date is within the typical range.

These terms align with standard NZ property transactions and do not present any unusual risks.

Chattels Included

Standard chattels are included: fixed floor coverings, light fittings, blinds, curtains, range hood, dishwasher, and heat pump. All chattels are warranted as working at the settlement date.

This is a typical chattels package for a residential property sale.

What Appears to Be Missing

These protections are often included in property agreements but are not present in this one.

No LIM Condition

A LIM report from Auckland Council would reveal information about consents, zoning, and any outstanding notices. Without this condition, you rely on the vendor's disclosures.

No Toxicology Report

For a 1970s property, checking for asbestos-containing materials may be prudent. This is not explicitly required by the agreement.

What We Could Not Verify

These items require independent verification from your conveyancer or local council.

  • Whether the registered flats plan matches the current building footprint
  • The condition of the building (no building report condition included)
  • Whether Auckland Council has any outstanding notices on the property
  • Current body corporate or cross-lease operating arrangements
  • Insurance status and whether cross-lease affects coverage

Questions for Your Conveyancer

Here are the key questions we recommend raising with your conveyancer before you sign.

  1. 1"Is the flats plan up to date, or does it need to be updated before settlement?"
  2. 2"What are the specific restrictions on alterations under this cross-lease?"
  3. 3"Should we add a building report condition given the age of the property?"
  4. 4"Does the Special Character Area overlay affect our plans for the property?"
  5. 5"What are the typical costs if the flats plan needs updating?"
  6. 6"How does the cross-lease affect our ability to get insurance and a mortgage?"

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Disclaimer: This is a sample report for illustration only. The findings, property details, and questions shown here are fictional and created to demonstrate the Clause report format and analysis style. Your actual report will analyse your specific agreement and may include different findings based on the actual terms, conditions, and property details in your document. Clause is not a substitute for independent legal advice. We strongly recommend consulting a qualified lawyer or conveyancer before signing any property agreement. Nothing in this report constitutes legal, financial, or investment advice.