New Zealand Law Society - Residential Land Statements now required for every residential S&P agreement

Residential Land Statements now required for every residential S&P agreement

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Since 22 October 2018 every sale of residential property in New Zealand has required completion of a Residential Land Statement.

Introduced as part of the Overseas Investment Act changes but applying to all residential property sales, the statement must be completed by the purchaser and provided to the lawyer or conveyancer acting on their behalf.

The person making the statement must state to the best of their knowledge and belief whether the transaction requires consent under the Overseas Invesgment Act.

Each person acquiring an interest in the residential land must make a statement, except if they are acquiring an interest under an existing security arrangement or an exempted interest. The beneficiaries of a trust or the shareholders of a body corporate or company are not required to make a statement.

Section 51C of the Act says a conveyancer must not lodge, or direct the lodgement of, an instrument recording the acquisition of residential land if they have not obtained the required statement from their client or have reasonable grounds for believing the statement is not correct in a material particular.

The conveyancer must also take reasonable steps to ensure that a copy of the statement is kept for a period of at least 7 years after the date on which the instrument is lodged.

The statement must be made using the approved form "Residential Land Statement". A copy of the form and further information for conveyancers is available on Land Information New Zealand's website under the heading "Residential Land Statement".