See: Rule page
Reference · 63 terms
Glossary of NZ property terms
Plain-language definitions of the NZ real estate, property, and legal terms used across this site. Covers statutes, regulators, methods of sale, commission structures, contract terms, and property title types. Each entry links to the relevant rule page or guide where applicable.
A
- ADLS Agreement for Sale and Purchase (ADLS Agreement, ADLS/REINZ Agreement, S&P)
- The standard New Zealand contract form for residential property sales, jointly published by the Auckland District Law Society (ADLS) and the Real Estate Institute of New Zealand (REINZ). Almost all NZ residential transactions use a version of this form.
- Agency agreement
- The contract between a vendor and a real estate agency authorising the agency to market and sell the property. Can be sole agency (exclusive) or general agency (non-exclusive). See: Guide
- Auction
- A method of sale where interested buyers bid openly on a scheduled date. The vendor sets a private reserve price. A bid above the reserve creates an unconditional binding contract at the fall of the hammer. See: Guide
B
- BBO (Buyer Budget Over)
- A marketing technique used in by-negotiation sales. The property is advertised as seeking offers above a stated buyer-budget figure. Similar to BEO.
- BEO (Buyer Enquiry Over)
- A marketing technique used in by-negotiation sales. The property is advertised with a BEO figure as a price signal, without committing the vendor to accept that price.
- Body corporate
- The legal entity that owns and manages the common property of a unit title development. Every unit owner is automatically a member. Governed by the Unit Titles Act 2010.
- Building consent
- Permission granted by a building consent authority (usually a local council) under the Building Act 2004 to carry out specified building work. Most material alterations and additions require a consent. See: Rule page
- Building inspection (builder's report, pre-purchase inspection, pre-sale inspection)
- A visual, non-invasive assessment of a residential building carried out to NZS 4306:2005. Produces a report identifying significant defects.
- By negotiation
- A method of sale without a fixed deadline. Offers are made and negotiated individually. Commonly marketed with BEO or BBO price signals.
C
- CAC (Complaints Assessment Committee)
- A three-person panel under the Real Estate Agents Act 2008 that assesses complaints against licensees. Composition: one lawyer, one industry representative, one consumer representative.
- Caveat emptor
- Latin, "let the buyer beware." The principle that the buyer bears the risk of discovering defects in the property. NZ residential sales operate largely under this principle, with limited exceptions (unit title statutory disclosures, agent duty to disclose known defects).
- CCC (Code Compliance Certificate)
- A certificate issued by a Building Consent Authority confirming that building work was completed in accordance with the consent and the Building Code. Typically required at the end of consented work. See: Rule page
- Chattels
- Movable items and fixtures specifically listed as included in the sale under the ADLS Agreement. Items not listed are not transferred.
- ComCom (Commerce Commission)
- The New Zealand regulator that enforces the Commerce Act 1986 and the Fair Trading Act 1986.
- Conjunctional sale (conjunctional commission)
- A sale where a buyer is introduced by an agent from a different agency than the listing agency. The commission is split between the two agencies per the agency agreement. Permitted under sole agency.
- CoA (Certificate of Acceptance)
- A retrospective certificate issued under section 96 of the Building Act 2004, accepting work that was carried out without the required building consent. Usually obtained when pre-sale issues are discovered. See: Rule page
- Course of dealing
- A doctrine of NZ contract law: the established practice between parties can supplement or modify the written contract. Relevant where an agency consistently sought approval before acting, then later invokes a clause as pre-authorisation for unilateral action. See: Guide
- Cross lease
- A NZ-specific form of property title where owners hold undivided shares in a common freehold and lease back specific areas of land and buildings. Common in older NZ subdivisions. Changes to the property typically require cross-lease-holder consent.
D
- Deadline sale (deadline treaty)
- A method of sale similar to tender but with more flexibility: the vendor can accept an offer before the deadline. Increasingly common in recent years.
- Disclosure document
- An agent-drafted document listing known issues or matters about the property for prospective purchasers. Not a statutory form for standalone houses (unlike unit title statutory disclosures). The vendor signs; the vendor carries the liability. See: Guide
E
- EQC / NHC (Natural Hazards Commission Toka Tū Ake)
- EQC (Earthquake Commission) was the previous name of the scheme that provides statutory cover for natural-hazard damage to residential property. From 1 July 2024, renamed to Natural Hazards Commission Toka Tū Ake (NHCovers). Older claims are still referred to as EQC claims.
F
- Fee simple
- The most common form of NZ property title. Full ownership of both the land and the buildings on it, subject to any registered encumbrances.
- FMCA 2013 (Financial Markets Conduct Act)
- The NZ statute regulating financial markets and financial advice. Defines where "general information" ends and "regulated financial advice" begins. Content on this site is deliberately non-advisory. See: Rule page
- FSBO (For Sale By Owner)
- A sale where the vendor sells the property privately without engaging a real estate agency. NZ market structure (bank valuation practices, listing-platform dominance) creates friction for FSBO — see the relevant guides.
- FTA 1986 (Fair Trading Act)
- The NZ statute prohibiting misleading or deceptive conduct in trade. Section 9 is the general prohibition; section 13 covers specific false representations. See: Rule page
G
- General agency
- An agency arrangement allowing multiple agencies to market the property simultaneously. Whichever agency introduces the successful buyer earns the commission. Contrasts with sole agency.
- GST (Goods and Services Tax)
- New Zealand's 15% value-added tax. Applies to real estate commissions. Residential property sales by vendors not registered for GST are generally GST-exclusive.
H
- HDCA 2015 (Harmful Digital Communications Act)
- The NZ statute addressing serious digital-communications harms. Relevant in property contexts when photographs or online content about occupants (particularly children) cause harm. See: Rule page
- Healthy Homes Standards
- Minimum standards for heating, insulation, ventilation, moisture, and draught stopping in residential rental properties. Required under the Residential Tenancies Act 1986 (as amended by the 2019 Regulations). Apply to rentals, not owner-occupiers. See: Rule page · Guide for owners
I
- IPP (Information Privacy Principle)
- One of the 13 principles in the Privacy Act 2020 governing the collection, use, and disclosure of personal information. IPP 1 (purpose), IPP 4 (unfair collection), and IPP 11 (disclosure limits) are the most frequently engaged in property contexts. See: Rule page
L
- LBP (Licensed Building Practitioner)
- A credential under the Building Act 2004. LBPs must carry out or supervise restricted building work. The LBP register is public at lbp.govt.nz. See: Rule page
- Leasehold
- A form of NZ property title where the owner holds the building but leases the land from a separate landowner. Ground rent is payable. Common in some Auckland suburbs.
- LIM (Land Information Memorandum)
- A summary document issued by a territorial authority (local council) under section 44A of LGOIMA 1987. Summarises council-held information about a property: consents, rates, zoning, hazards, designations. See: Rule page · Guide for buyers
- Licensee
- Under the Real Estate Agents Act 2008, the statutory umbrella term for agents, branch managers, and salespersons. All three are bound by the same Professional Conduct and Client Care Rules 2012. See: Rule page
- LINZ (Land Information New Zealand)
- The government agency that administers the NZ land title system. Titles are searched through LINZ, not the council. Separate from LIM (council-issued).
- LGOIMA 1987 (Local Government Official Information and Meetings Act)
- The NZ statute governing access to local government information, including the LIM provisions (section 44A). The Local Government Official Information and Meetings Amendment Act 2023 added new sections 44B–44D to strengthen natural-hazard disclosure; the amendments commenced 1 July 2025, with corresponding regulations in effect from 17 October 2025. See: Rule page
N
- NZIBI (New Zealand Institute of Building Inspectors)
- A voluntary industry body for NZ building inspectors. Members adhere to a Code of Ethics and endorse NZS 4306:2005. Membership is voluntary; the building inspection industry in NZ is otherwise unregulated. See: Rule page
- NZS 4306:2005
- The New Zealand Standard for residential property inspection. Defines a competent visual, non-invasive inspection. Voluntary — but functions as the industry benchmark. See: Rule page
O
- OPC (Office of the Privacy Commissioner)
- The regulator that administers the Privacy Act 2020. Handles complaints about privacy breaches. Free to use; non-court process. See: Rule page
P
- PCCC Rules 2012 (Professional Conduct and Client Care Rules 2012, Code of Conduct)
- The rules made under section 14 of the Real Estate Agents Act 2008. Set the day-to-day standards of conduct for licensees. Rule 9.1 (best interests of client) and Rules 6.2/6.4/9.1 together (fiduciary, fair dealing, best interests) — applied to undisclosed referral benefits since PCCC does not contain a specific referral-disclosure rule are frequently cited. See: Rule page
- Property file
- The full set of documents a council holds about a property — consent applications, plans, inspection records, CCCs. Obtained directly from the council under LGOIMA. Complementary to (and more detailed than) the LIM.
- Purchaser
- In NZ real estate and contract language, the buyer. Used interchangeably with "buyer" in plain-language content.
R
- REA (Real Estate Authority)
- The NZ regulator for real estate agents. Legally named Real Estate Agents Authority under the REA Act 2008; commonly branded as Real Estate Authority. Consumer-facing site: settled.govt.nz. Regulator-facing site: rea.govt.nz. See: Rule page
- REA Act 2008 (REAA 2008, Real Estate Agents Act 2008)
- The principal NZ statute governing real estate agency work. Establishes the licensing regime, the complaints process (Part 4), and enables the Professional Conduct Rules 2012. See: Rule page
- REINZ (Real Estate Institute of New Zealand)
- The industry body for NZ real estate. Distinct from the REA (regulator). REINZ publishes training, sales data, and the ADLS/REINZ contract form.
- Rateable Value (RV, CV (Capital Value))
- The valuation of a property for rating (council tax) purposes. Set during each council's three-year revaluation cycle. Not the same as market value. See: Guide
- Reserve
- The minimum price at which the vendor will sell at auction. Set before the auction; not disclosed to bidders. A bid that reaches the reserve "meets the reserve" and the property can be sold.
- RTA 1986 (Residential Tenancies Act)
- The NZ statute governing residential tenancies. The Healthy Homes Standards are regulations made under this Act.
S
- S&P
- Shorthand for Sale and Purchase — the ADLS Agreement for Sale and Purchase of Real Estate.
- Salesperson
- One of the three classes of licensee under the REA Act 2008. Most day-to-day real estate work is carried out by salespersons, supervised by agents and branch managers.
- Set date sale
- A method of sale similar to a deadline sale, with regional and agency variations. Offers due by a specified date.
- Settled.govt.nz
- The Real Estate Authority's consumer-facing information site. Authoritative source for official NZ real estate process information.
- Settlement
- The completion day of a property transaction: title transfers to the purchaser and the balance of the purchase price is paid. The gap between an unconditional contract and settlement is negotiated in the agreement — commonly 4–8 weeks, but anything from a few days to several months is possible depending on what the parties agree.
- Sole agency
- An agency arrangement granting a single agency the exclusive right to market the property for a specified period (typically negotiated between vendor and agency — the commonly offered term is 90 days, but shorter or longer periods are permitted by agreement). Contrasts with general agency.
- Solicitor
- In NZ, a lawyer qualified to carry out conveyancing. The vendor's and purchaser's solicitors handle the legal side of the transaction through to settlement. Not called "attorney" in NZ.
T
- Tender
- A method of sale where interested buyers submit sealed written offers by a specified deadline. Offers are not opened until after the deadline. Tender offers are typically binding for 5 working days after the tender closing date.
- Title (Record of Title, Certificate of Title)
- The legal document confirming property ownership and any registered interests (encumbrances, easements, covenants). Issued and maintained by LINZ. Searched as part of conveyancing due diligence.
- Tribunal (Real Estate Agents Disciplinary Tribunal) (READT)
- The independent statutory body established under the Real Estate Agents Act 2008 to hear serious disciplinary matters referred by Complaints Assessment Committees. Can impose censure, fines, training orders, licence conditions, suspensions, or licence cancellation. Decisions are publicly available. See: Rule page
U
- Unconditional
- A sale and purchase contract with no outstanding conditions. Settlement must proceed on the agreed date. Auction contracts are typically unconditional from the fall of the hammer.
- Unit title
- A NZ form of property title for apartments, townhouses, and similar stratified developments. Each unit is separately titled; shared areas are common property owned by the body corporate. See: Rule page
V
- Vendor
- In NZ real estate and contract language, the seller. Used interchangeably with "seller" in plain-language content.
- Vendor warranties and undertakings
- Written guarantees the vendor gives the purchaser in the ADLS Agreement. Standard warranties cover title, consents, chattels in working order. Added warranties (e.g., commitment to remediate specific items before settlement) can be negotiated. See: Rule page
W
- Weathertightness
- The building's ability to keep water out. A specific NZ concern following the "leaky buildings" crisis of the 1990s–2000s. Relevant in building reports and vendor warranties.