Pre Settlement Agreement Template for New Zealand

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Key Requirements PROMPT example:

Pre Settlement Agreement

"I need a Pre Settlement Agreement for a commercial property purchase in Auckland, where we require early access from March 1, 2025, to begin renovation works before the final settlement date of May 15, 2025."

Document background
The Pre Settlement Agreement is a specialized legal document used in New Zealand property transactions to bridge the gap between the initial sale and purchase agreement and the final settlement. This document becomes necessary when parties need to establish clear terms and conditions for the pre-settlement period, particularly in complex property transactions or when early access or specific arrangements are required. It addresses crucial aspects such as payment schedules, property access, risk allocation, and pre-settlement obligations, all within the framework of New Zealand property law. The agreement is especially valuable in situations involving commercial properties, development projects, or transactions with specific conditions that must be met before settlement. It provides legal certainty and protection for all parties involved while ensuring compliance with relevant New Zealand legislation, including the Property Law Act 2007 and the Contract and Commercial Law Act 2017.
Suggested Sections

1. Parties: Identification and details of all parties to the agreement, including full legal names and addresses

2. Background: Context of the agreement, including reference to the sale and purchase agreement and reason for pre-settlement arrangements

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpreting the agreement

4. Agreement to Purchase: Confirmation of the agreement to purchase and key terms from the sale and purchase agreement

5. Pre-Settlement Obligations: Detailed listing of what each party must do before settlement

6. Settlement Date and Time: Specific details about when and where settlement will take place

7. Payment Terms: Details of all payments, including deposits, progress payments, and final settlement amount

8. Property Access: Terms regarding access to the property before settlement

9. Risk and Insurance: Allocation of risk and insurance requirements before settlement

10. Default and Remedies: Consequences of default by either party and available remedies

11. General Provisions: Standard contract clauses including notices, entire agreement, and governing law

Optional Sections

1. Conditions Precedent: Specific conditions that must be met before settlement can proceed, used when there are particular requirements that must be satisfied

2. Tenancy Matters: Provisions relating to existing tenants, required when the property is tenanted

3. Property Maintenance: Specific requirements for maintaining the property before settlement, used when there are concerns about property condition

4. Chattels: Specific provisions about chattels included in the sale, used when there are significant or valuable chattels

5. GST Provisions: Detailed GST terms, required when either party is GST registered or the transaction is subject to GST

6. Development Provisions: Terms relating to ongoing development or construction, used for properties under development

7. Body Corporate Matters: Specific provisions relating to body corporate requirements, used for apartments or units

Suggested Schedules

1. Schedule 1: Property Details: Detailed description of the property including title references and legal description

2. Schedule 2: Payment Schedule: Detailed breakdown of all payments including amounts and due dates

3. Schedule 3: Chattels List: Comprehensive list of all chattels included in the sale

4. Schedule 4: Outstanding Works: List of any works to be completed before settlement

5. Appendix A: Sale and Purchase Agreement: Copy of the original sale and purchase agreement

6. Appendix B: Title Documents: Copies of relevant title documents and encumbrances

7. Appendix C: Property Inspection Reports: Copies of any relevant property inspection reports

8. Appendix D: Insurance Certificates: Copies of insurance certificates and policies

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Real Estate

Property Development

Legal Services

Financial Services

Construction

Property Management

Banking

Insurance

Professional Services

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Risk Management

Operations

Commercial

Settlements

Contracts Administration

Due Diligence

Relevant Roles

Property Lawyer

Real Estate Agent

Property Manager

Conveyancing Lawyer

Legal Counsel

Property Developer

Settlement Agent

Contract Manager

Real Estate Transaction Coordinator

Property Consultant

Commercial Property Manager

Legal Executive

Compliance Officer

Risk Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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