Authors: Phil Hyde, Jesse Savage 
Published: 17 August 2022
Pages: 78

Introduction

The purpose of this paper is to provide conveyancing practitioners with an understanding of both:

•  the scope of the various warranties and undertakings given by the parties, and
•  the circumstances where a claim for compensation may be made;

under the ADLS/REINZ Agreement for Sale and Purchase of Real Estate (Eleventh edition 2022), referred to in this paper as the Eleventh Edition. A sample copy of the Eleventh Edition is set out in Appendix 1.

The paper will also provide practical advice on how to identify, prevent and handle issues and disputes, before or after they arise. This paper has focused mainly on the warranties that cause the majority of issues in practice.

It is beyond the scope of this paper to cover any vendor warranties regarding unit titles. The writers also wish to extend their thanks to Barbara McDermott and Gill Whinray whose excellent work this book and webinar is in a large part based on.

Content outline

• Notices, demands, consents and waivers
• Knowledge at date of agreement of possibility of proceedings
• Warranty as to chattels
• Electrical and other installations free of charges
• Rates, water rates and charges
• Allowances in settlement statement
• Consents for works
• Building Act compliance schedule warranties
• Consents or waivers since date of agreement
• Notices, demands received after date of agreement
• Vendor’s warranties on or immediately after settlement
• Purchase price allocation
• Zero rating
• Supply of going concern
• Claims for compensation
• Some miscellaneous matters
• Practical steps