Preliminary Purchase Agreement Template for New Zealand

The Preliminary Purchase Agreement serves as an essential stepping stone in New Zealand property transactions, bridging the gap between initial interest and a final Sale and Purchase Agreement. This document is particularly valuable in complex property transactions where significant due diligence is required or where parties need to establish clear terms before committing to a full purchase agreement. It typically includes provisions for property inspection, title review, and other investigations while protecting both parties' interests during the preliminary phase. The agreement must comply with New Zealand property law, contract law, and relevant regulations, including the Property Law Act 2007 and Contract and Commercial Law Act 2017. A well-drafted Preliminary Purchase Agreement helps prevent misunderstandings and provides a clear framework for progressing toward the final transaction.

1. Parties: Identification of the potential vendor and purchaser, including full legal names and addresses

2. Background: Context of the preliminary agreement, including brief property description and parties' intention to enter into a full sale and purchase agreement

3. Definitions: Key terms used throughout the agreement, including Property, Deposit, Due Diligence Period, and Settlement Date

4. Property Details: Comprehensive description of the property, including legal description, title references, and any inclusions/exclusions

5. Purchase Price: Proposed purchase price and payment terms, including any deposit arrangements

6. Due Diligence: Terms and timeframe for the purchaser to conduct property investigations and due diligence

7. Conditions Precedent: Conditions that must be satisfied before proceeding to a full sale and purchase agreement

8. Timeframes: Key dates and deadlines for various stages of the preliminary agreement

9. Confidentiality: Obligations regarding confidential information shared during the preliminary agreement period

10. Costs: Allocation of costs associated with the preliminary agreement and due diligence process

11. Termination: Circumstances under which either party may terminate the preliminary agreement

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