RSS Feed

Don't take legal advice from RE agents

Thursday, October 15, 2020

Here is a reminder not to allow the property professional you work stray out of his lane: 

An APIA member recently bought a property with a tenant in situ. She did not require vacant possession and was quite prepared to keep the existing tenant on the property. Like most reasonable buyers, this member asked for a copy of the tenancy agreement, rent and management records. Neither the agent nor the vendor could locate any of these documents. The agent, in what we assume to be an attempt to push the deal through, wrote on the sale and purchase agreement the tenant’s name and, next to it, “new tenancy agreement upon settlement”. The agreement is now unconditional.

The buyer now finds herself with an unenforceable clause. 

Tenancy agreements run with the land, not the owner. The new owner and the tenant are both bound by the existing tenancy agreement. Signing a new agreement now could put the APIA member in breach of termination rules, disadvantage her as to her right to increase rent, inspect etc. This is an instance where a real estate agent had given legal advice to a buyer when he is not qualified to do so. 

We recommend all buyers to involve their solicitors throughout the purchasing process include having agreements fully reviewed before signing.

Recent Posts


interest rates finance initio commerce commission watercare positive cash flow government meth contamination nzpif Market report education skill shortage Level 4 twg report cgt ocr trademe income asbestos HHS Must know extractor fan reserve bank How to building ring-fencing khh advice Guest blog RBNZ anti-social behaviour shower dome Q&A rental market personal growth CoreLogic cat inspection partners early termination tenancy tribunal interest only election 2017 tenancy services robert kiyosaki subdivision LIM insurance warren buffett maintenance recycling equity ventilation Investor story airbnb productivity equity warm up new zealand data security letting fee business yield winz re agent p lab buying rules housing affordability tax rent increase off the plan cash-flow sublease lvr sale and purchase rental wof ird short-term rental beginner investor Holler buyer's agent gluckman report covid-19 Sponsored post banking capital gain TCIT Tribunal case study Must knows boarding house property maintenance Property (Relationships) Act rta negotiation market rta reform scotney williams development property management wealth creation relationship election2020 holiday house debt enforcement investor renovation auckland council legal termination minor dwelling sale and purchas Standards New Zealand ask an expert mortgage principal and interest Question and answer return Kris Pedersen Mortgages and Insurance letting Jeff Bezos fixed-term tenancy housing bubble bond form heater insulation opes partners trust rent rtaa2020 DTI speculator investment strategy Investment tip privacy worksafe tenant property CCC anz barfoot and thompson bond structure unitary plan heating television kiwibuild mindset water bill damage rent arrears Landlording Editor's Choice clnz trespass property value property apprentice HHGA house prices property cycle Gluckman tenancy issues first home buying market rent wins financial advisers act Case study management will HSWA auckland parry v inglis landlord meth smoke alarm RTAA 2019 buying bad tenant


Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 

Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited