Specialist property law

New Build Property Conveyancing

Purchasing a new build property (either "off-the-plan" before construction or a newly finished turnkey package) carries a unique set of legal risks. We check your developer contracts, safeguard your deposit in trust, audit title subdivisions, and negotiate sunset protection clauses.

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Contract Checklist

✔ **Sunset Protections**: Negotiating buyer-only cancellation rights.

✔ **Deposit Security**: Holding funds in solicitor trust accounts.

✔ **Code Compliance**: Settle only *after* Council CCC and title issue.

✔ **Defect Protection**: Activating the statutory 90-day maintenance period.

1. KiwiSaver Withdrawals

We coordinate with your KiwiSaver provider to withdraw funds for your deposit or settlement. We draft the statutory declarations and verify your documents to ensure the funds land in our Trust Account on time.

15-Working-Day Rule applies

2. Kāinga Ora Grants

If you qualify for the Kāinga Ora First Home Grant or First Home Loan, we execute the solicitor certifications and compile compliance documentation to release the subsidy prior to settlement.

Full compliance oversight

3. Family Deposit Gifting

If parents are gifting deposit funds, banks require a formal declaration that the funds are non-repayable. We draft compliant **Deeds of Gift** to prevent bank approval delays.

Bank-approved drafting

Critical Legal Risks in Off-the-Plan Contracts

1. Double-Sided Sunset Clauses

A sunset clause allows a party to cancel the contract and refund the deposit if the build is not completed by a specified date. While designed to protect buyers from indefinite delays, **double-sided sunset clauses allow developers to cancel the contract too**.

VITAL TIP: Never make an offer with a finance or settlement clause under 15 working days if you rely on KiwiSaver. We will review your Sale and Purchase contract *before* you sign to align dates with your provider's windows.

2. Price Escalation Clauses

Developer contracts often contain "escalation clauses" allowing them to increase the purchase price if building material costs rise during construction. We seek to remove or cap these clauses to give you certainty on the total purchase price.

3. Progressive Payment Variations

Variations are changes to the build specifications (materials, layouts, fittings) made after signing. If you request a change, or if a material is unavailable, the builder issues a variation order.

**Legal Rules**: Under the Building Act, variations must be agreed upon in writing and signed off by both parties before the work begins. We ensure variation disputes are managed under clear dispute resolution clauses in the build contract.

4. Transfer of Building Warranties (Master Build)

A new build carries structural warranties. If the builder provides a 10-year Master Build Guarantee or Halo Guarantee, this does not transfer automatically on purchase. We prepare the formal transfer documents and submit them to the Master Builders Association to ensure your warranty coverage starts on settlement day.

Statutory 90-Day Defect Period

Under the New Zealand Building Act 2004, builders are subject to a **mandatory 90-day defect maintenance period** starting from the settlement date. If you notice any defects (cracked plaster, leaking taps, poor paint finish, misaligned doors) within these 90 days, the builder is legally obligated to repair them.

Boutique Contract Check: We insert custom clauses allowing you to withhold a portion of the purchase price (e.g. $5,000 to $10,000) in our trust account as a "retention bond" until the builder satisfies all 90-day defects.

Ensuring Construction Quality

Many buyers assume new builds are flawless. In reality, minor and major construction defects are common. A retention bond gives the developer a financial incentive to return and finish the repairs after settlement.

We negotiate these retention clauses and review your defects warranty conditions to ensure you are fully protected after taking possession.

Instruct Quay Law Before You Sign

Ensure your off-the-plan developer contract has the correct protective sunset and retention clauses. Request a transparent fee quote online before you sign.

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New Build Process FAQs

A CCC is issued by Auckland Council confirming that the finished building matches the approved building consent and complies with the NZ Building Code. You should never settle or pay the balance on a new build until the CCC is issued, as banks will not release mortgage funds without it.

Standard off-the-plan agreements allow developers to substitute materials or fittings if those specified are unavailable, provided the replacements are of "equal or better quality." We check these clauses to ensure you are protected from downgrades in appliances, flooring, or fixtures.

Your deposit must be held in a stakeholder law firm’s trust account in New Zealand. This protects your funds if the developer goes into liquidation or receivership during the build. We verify that the contract explicitly prevents the developer from using your deposit to finance construction.

Discuss Your Residential Transaction

Get in touch with Quay Law to review a Sale and Purchase Agreement, audit a land title, or arrange legal settlement.