- By Alistair van Schalkwyk, Franchise Specialist Lawyer at ASCO Legal
In New Zealand, most homes are sold either by auction or by negotiation (“price by negotiation”).
While both methods are common, the legal processes are very different – and understanding them could save you stress, time, and money.
Buying at auction
At auction, the moment the hammer falls, the sale is ‘unconditional’. There are no “subject to” clauses, so all your homework must be done beforehand – finance approval, a building inspection, LIM report, title search, and legal review.
If you’re the winning bidder, you’re locked in. The catch? You’ll often spend money on due diligence without knowing if you’ll actually secure the property.
Buying by negotiation
Negotiation offers more flexibility. You can include conditions such as finance, building inspection, LIM report and approval of the title. These give you time to properly investigate the property after signing.
If your conditions aren’t satisfied, you may be able to withdraw without penalty.
It’s important to talk to your lawyer before signing to ensure the correct conditions are included, otherwise, you could end up trapped in an agreement without a way out if an issue arises.
Why early legal advice matters
The key difference is timing: auctions demand all the legwork upfront, while negotiation gives you breathing room after signing.
In both cases, early legal advice is crucial to avoid costly mistakes.
At ASCO Legal, we review your contract, check the fine print, and guide you through every step – so you can buy with clarity and confidence.
Whether it’s your first home or your next investment, we’ll make sure you know exactly what you’re committing to.
Thinking of buying? Call ASCO Legal before you bid or sign – it could be the smartest move you make.
- ascolegal.co.nz Phone 09 308 8070.
