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  • Gagandeep Kaur

Conveyancing Requirements

Whether you are selling or purchasing the land, a technical legal requirements of

conveyancing is overwhelming for the first time dealing with the property

transactions. So, I rounded up the most important terms you will be needed to know

when buying or selling the property.

Let’s get started:

Sale and Purchase agreement:

A sale and purchase agreement is a contract of sale. It is a legally binding

agreement between the vendor (the seller) and the purchaser (the buyer). Once

signed and all the conditions met, you cannot back off from the agreement. It

contains terms and conditions, purchase price, which both parties agreed on and

settlement date etc. If you are buying with your partner or brothers or sisters, make

sure to include their names. If not recorded when the contract was signed, you have

to ask your lawyer to prepare the deed of nomination, and it will cost you an extra

legal fee.

Certificate of title:

The certificate of title is also called CT or record of title. It certifies who is the

registered owner of the property. It shows the identifier unique number on top of the

title page. In addition, it records registered covenants, mortgage and encumbrances

and any third party’s interest in the property. When you purchase the property, it is

an essential document; make sure to ask your lawyer to provide you with a new copy

of the title to see your name as a registered owner.


The encumbrances refer to the instruments or agreements which contains limitations

or restrictions on the property. The most common encumbrances are mortgages,

easements and land covenants. The mortgage encumbrance is by the bank from

where you have taken a loan with the promise to repay; when you sell the property,

you need to discharge the mortgage means repay the total amount taken from the

bank; your lawyer can help you with the process.

Profits a prendre or Easement:

An easement is commonly known as the right of way; one property’s owner has the

right of way on another property for a specific purpose. A very widely seen

easements are sewerage and drainage easement. The water authority has the right

to use your land to supply sewerage and drainage services if it is registered on the


Land covenants:

You must have noticed land covenant on the title and must be wondered what it is?

Let me tell you first what is burdened land and benefited land.The burdened land

describes land over which an easement or land covenant is created. The benefited

Land” which receives a benefit from the land covenant.

If you are the owner of burden land (covenantor), it means obligations to do things

are on you. And if you are the owner of benefit land (covenantee), it means you will

receive the benefit from the land covenant.

A land covenant is an agreement between a covenantor and covenantee to do or

refrain from doing something in respect of the land. If you want to know more about

what kind of land covenant is registered on the title, you can get the instruments from

Linz. Below is the link to get the title and instruments.

Search for and order a land record | Toitū Te Whenua Land Information New

Zealand (


A caveat can be lodged against the property if someone has an interest in your

property. A caveat is a legal claim that prevents the owner from selling or transferring

the property until the claim is determined.

Sunset clause:

Off-the-plan dwelling contained a time cap on how long the vendor could take to

complete the property. If the vendor could not complete the home within the agreed

time frame or by a specified date, both buyer and the vendor were at liberty to

terminate the agreement unilaterally. The estimated time was commonly referred to

as the “sunset period”, and the provision in the agreement of sale and purchase

permitting cancellation was referred to as “sunset clause”.

Let us know if you have any questions; we would love to help you.

‘’Good Luck With House Hunting’’


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