Buying and selling houses in NZ at the same time is one of the most exciting things you'll do, and at Absolut Legal, we aim to make it as straightforward as possible. Two agreements, two sets of conditions, and one very loaded moving day.
With the right legal support, buying and selling a home at the same time is entirely manageable, and we're here to walk you through exactly what to expect.
Get your agreements reviewed before you sign. It's complimentary at Absolut Legal. Reach out to our team today.
Key Takeaways:
- Buying and selling houses in NZ at the same time involves three key stages: the offer stage, due diligence, and the settlement day.
- Both agreements need specific protective conditions. Getting these right from the start is everything.
- Align your settlement dates so both transactions complete on the same day.
- Your purchase is usually confirmed before your sale, but sometimes it all happens on the same day.
- Your property must be fully vacant before your sale can settle, and your purchase can follow.
Can You Really Buy and Sell a Property at the Same Time?
Yes, and plenty of Kiwis do it. Selling and buying a house at the same time in NZ is a perfectly viable path and more common than most people think. It does require careful coordination between your two agreements, clear timeframes, and a property lawyer who knows what to look for before you sign.
The process breaks down into three stages: the offer stage, due diligence, and settlement day. Here's what happens at each one.
Stage One: Getting Your Offers Right
This is where the foundation is set. When buying and selling a home at the same time, the most important thing you can do is get your solicitor to look over both agreements before signing.
At Absolut Legal, that agreement check is complimentary.
What to Include in Your Purchase Agreement
When buying and selling a property simultaneously, we recommend these conditions in your purchase agreement:
- Finance condition: gives your bank time to confirm your mortgage
- LIM condition: allows us to review the Land Information Memorandum from the council
- Building report condition: so you can get a qualified inspector through the property
- Insurance condition: confirms you can obtain suitable cover before going unconditional
We also strongly recommend including a clause that makes your purchase conditional on entering into an unconditional agreement to sell your existing property on or before a specified date. Your bank will typically require this, as they need confirmation that your current home has sold before unconditionally approving your finance.
What to Include in Your Sale Agreement
Your sale agreement also needs a protective clause. It should be conditional on entering into an unconditional agreement to purchase a new property. Without it, you could end up locked into a sale with nowhere to go. This clause allows you to step back if you haven't secured your next home within the agreed timeframe.
Aligning Timeframes and Settlement Dates
Once both agreements are in place, the condition timeframes and settlement dates need to line up. We recommend the same settlement day for both transactions. This avoids temporary accommodation, double moving costs, and short-term storage, and keeps the finances cleaner because your sale proceeds flow directly towards your purchase.
Not sure if your agreements have the right conditions? Reach out to us, and we'll walk you through selling and buying property at the same time.
Stage Two: The Due Diligence Period
Once both agreements are signed, you move into the due diligence phase. This is the period where conditions are being worked through. Your building inspection is booked, your LIM is ordered, and your bank is doing its checks.
In most cases, your purchase will be confirmed “unconditional” before your sale. But it can also happen that both go unconditional on the same day.
If questions come up at any point about the LIM, the building report, or what something in the agreement actually means, don't sit on them. If you need support with answering these questions, speak with Absolut Legal before your agreements go unconditional. We're happy to talk through any queries or concerns you have.
Stage Three: What Actually Happens on Settlement Day
Settlement day is always an exciting one. In most cases, it means moving out and moving in on the same day, and yes, there's a short window where things feel a little in limbo.
Buying and selling a house at the same time means both transactions settle on the same day, anywhere between 11am and 4pm. The key thing to understand is that your sale must settle before your purchase can. Your property needs to be fully vacated before we can complete the sale and receive the funds to settle your purchase.
Most people load their belongings onto the truck, do a final walkthrough, confirm the property is empty, and then wait for the green light. Once we receive confirmation that the property is vacant, we notify the purchaser's lawyer that we're ready to proceed.
At that point, we're waiting on the sale proceeds and your bank funds (if applicable) to arrive. As soon as both are in, we settle your purchase, and you can collect the keys.
Common Questions About Buying and Selling Houses in NZ at the Same Time
Do I need to sell my house before I can buy another one in NZ?
Not necessarily. If you have sufficient equity or cash available, you can purchase another property without selling your existing home first. This is pretty common for property owners. However, if you're relying on a new mortgage, your bank will typically require an unconditional sale agreement on your existing home before approving finance for the new purchase.
The right conditions in both agreements can also allow you to buy and sell simultaneously. If you're unsure about how to structure your agreements or which conditions best protect your interests, a property lawyer like Absolut Legal can provide invaluable guidance.
What happens if my sale falls through, but my purchase is already unconditional?
This is exactly why the "conditional on sale" clause matters. If your purchase contains that clause and the sale doesn't proceed, you're protected. Without it, you're locked into a purchase you don't have the funds to complete.
Do I need bridging finance if I'm settling on the same day?
If both transactions settle on the same day, bridging finance is typically unnecessary. The funds from your sale flow directly towards your purchase. It becomes relevant only if the settlement dates don't align and you need to cover a gap period.
Can I negotiate a longer settlement period to give myself more time?
Yes, and it's worth considering. More time between signing and settlement gives you breathing room to sort your conditions without feeling rushed. Talk to your lawyer about what makes sense for your situation before signing either agreement.
What does "going unconditional" mean?
It means all conditions in your agreement have been satisfied or waived, and the contract is now binding. Both parties are legally committed, and you can't back out without consequences. This is why the due diligence period is so important.
How Absolut Legal Helps You Through the Process
Buying and selling a property at the same time involves many moving parts, and a smooth settlement almost always comes down to how the agreements are set up from the start. For most Kiwis buying and selling houses in NZ simultaneously, getting the conditions right from day one is what makes all the difference.
At Absolut Legal, we offer fixed-fee conveyancing (purchase from $2,400 and sale from $1,680), with no surprises or hidden costs. We offer a complimentary review of your agreements before you sign, and we're available throughout the process if questions come up.
We're based in Sockburn and Kirwee and work with clients across Christchurch and throughout New Zealand. We look forward to supporting you through this exciting time.
Ready to get started? Call us on 027 419 4993, email enquiries@absolutlegal.co.nz, or send us a message, and we'd love to help.
