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Contractor Agreement
I need a contractor agreement for a freelance graphic designer who will work on a project basis for a duration of 6 months, with flexible hours and remote work options. The agreement should include payment terms based on project milestones, confidentiality clauses, and a termination notice period of 2 weeks.
What is a Contract to Sell?
A Contract to Sell is a legally binding agreement where a seller promises to transfer property ownership to a buyer at a future date, once specific conditions are met. Under New Zealand's Property Law Act 2007, this type of contract creates clear obligations while keeping the actual sale separate from the initial agreement.
The key difference from a standard sale agreement is that ownership doesn't transfer immediately. Instead, the seller maintains title until the buyer fulfills certain requirements - typically full payment, property inspections, or securing finance. This arrangement gives both parties time to arrange their affairs while staying legally committed to the transaction.
When should you use a Contract to Sell?
A Contract to Sell proves invaluable when you need to secure a property deal but can't complete the sale immediately. Common scenarios include buying a house while waiting for your mortgage approval, purchasing a business that requires due diligence, or securing commercial property while arranging finance.
This agreement particularly suits complex transactions in New Zealand's property market where buyers need time to arrange funding or sellers must complete specific improvements before transfer. It protects both parties' interests during the interim period - the seller keeps ownership until conditions are met, while the buyer gains legal assurance that the sale will proceed.
What are the different types of Contract to Sell?
- Basic Purchase And Sale Agreement: Standard format for straightforward property transactions with basic conditions
- Vehicle Sale Agreement: Specialized version for motor vehicle transfers with specific registration and inspection clauses
- Stock Sale Contract: Tailored for business share transfers with company-specific conditions
- Simple Sales Contract: Streamlined version for uncomplicated goods transactions
- Simple Consignment Agreement: Modified structure for temporary possession arrangements before final sale
Who should typically use a Contract to Sell?
- Property Sellers: Individuals or companies looking to secure a future sale while maintaining ownership until conditions are met
- Property Buyers: People or businesses needing time to arrange financing or complete due diligence before taking ownership
- Real Estate Agents: Professionals who facilitate the agreement process and help negotiate terms between parties
- Legal Practitioners: Lawyers who draft, review, and ensure compliance with New Zealand property law requirements
- Financial Institutions: Banks and lenders who may be involved in financing arrangements and reviewing contract terms
- Property Developers: Companies using these contracts for off-plan sales or staged development projects
How do you write a Contract to Sell?
- Property Details: Gather complete property descriptions, addresses, and title information from Land Information New Zealand
- Party Information: Collect full legal names, addresses, and company details for all buyers and sellers
- Sale Terms: Document the agreed purchase price, deposit amount, and payment schedule
- Key Dates: Set clear timeframes for conditions, settlement, and possession
- Special Conditions: List any specific requirements like property inspections or finance approval deadlines
- Document Generation: Use our platform to create a legally compliant Contract to Sell that includes all required elements
- Final Review: Check all details match supporting documents and ensure all parties understand their obligations
What should be included in a Contract to Sell?
- Party Details: Full legal names and addresses of both seller and buyer, including company details if applicable
- Property Description: Precise details of the property being sold, including title references and boundaries
- Purchase Price: Clear statement of the agreed price, deposit requirements, and payment terms
- Conditions Precedent: Specific conditions that must be met before the sale completes
- Timeframes: Key dates for condition satisfaction, settlement, and possession
- Default Provisions: Consequences and remedies if either party fails to meet obligations
- Warranties: Seller's guarantees about the property's condition and title
- Execution Block: Signature sections compliant with New Zealand's Property Law Act requirements
What's the difference between a Contract to Sell and a Real Estate Sale Contract?
A Contract to Sell is often confused with a Real Estate Sale Contract, but they serve distinct purposes in New Zealand property transactions. The key differences affect when you should use each type:
- Timing of Transfer: A Contract to Sell delays property transfer until specific conditions are met, while a Real Estate Sale Contract typically completes the transfer immediately upon signing
- Ownership Rights: Under a Contract to Sell, the seller retains title until all conditions are satisfied; a Real Estate Sale Contract transfers ownership rights at settlement
- Payment Structure: Contracts to Sell often involve staged payments or conditions precedent, whereas Real Estate Sale Contracts usually require full payment at settlement
- Risk Transfer: Property risk remains with the seller in a Contract to Sell until conditions are met, but transfers to the buyer at settlement in a Real Estate Sale Contract
- Legal Remedies: Different enforcement options apply if either party defaults, reflecting the distinct stages of property transfer in each agreement type
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