Property Law Archives | Page 2 of 2

Options to buy a property during a cost of living crisis

April 9, 2026

Banking & Finance, Property Law, Relationship Property, Wealth & Asset Planning

While the property market has settled somewhat after the Covid boom, house prices in New Zealand are still high. For many, buying a home on your own is no longer viable. It is becoming necessary to consider alternative structures to help make buying a property more affordable.

Borrowing from parents

It is not a new concept, but the rise of house prices in New Zealand has meant that it is very difficult to buy a home without some extra financial help from mum and dad.

If this seems to be a realistic plan, it is important that both you and your parents get separate advice on how this could be structured.

Loans are an effective way for parents to help their children buy a home, without exposing those funds to relationship property losses. Lenders will often want money from parents to be a gift as part of a purchase. However, careful advice and structuring of money from the bank of mum and dad can mean that parents can provide financial assistance without fear of losing half of their money if a child and their partner separate.

It is possible for parental loans and bank loans to both exist in harmony provided you seek the right advice up front. You want to ensure all parties are protected before taking that first step to buy a property.

Co-ownership

Owning a home with a friend or relative to alleviate the rising costs is becoming a more common way for Kiwis to get onto the property ladder.

An important step to include as part of entering into co-ownership arrangements is to set out and define both parties’ understanding and expectations in respect of the property expenses, each party’s initial contributions and what happens if one of you dies, or wants or needs to sell their share.

These considerations are typically set out in what is called a property sharing agreement. Again, good advice before you buy a property with a friend or family member and a comprehensive property sharing agreement will help both parties understand their own rights and obligations before it is too late. As well, it assists to preserve whatever relationship you have with your co-owner if you do decide to go your separate ways.

Property sharing agreements can cover a range of co-ownership relationships from parent/child, siblings, other more remote family relationships or friends. Co-ownership in a de facto or spousal relationship, however, requires different specialist advice. Before you dive into buying a property with your friend, speak to us about ensuring both parties are protected and go into the venture fully aware of what you are getting into.

Iwi schemes

There are now a range of iwi schemes available for Māori to enter into shared equity ownership with either a scheme provider or their local iwi.

The criteria to qualify for these schemes differs depending on the scheme, but usually these are predominantly based on whether or not your whakapapa to a particular iwi, along with requiring some financial assistance to buy your first home.

The iwi or scheme provider buys a share of the property with you on specifically drafted terms that govern your shared ownership. These also usually include a timeframe in which you are meant to buy out the iwi or scheme provider from the shared equity arrangement, ultimately resulting in you owning your own property.

Other schemes with a wider base or catchment may assist members from a region or iwi or locality.

Understanding the criteria to apply and/or the rules that govern any iwi-based shared equity schemes are important. Be sure to contact us for advice on how the scheme that you qualify for works and what you have to do to keep to your side of the deal.

DISCLAIMER: All the information published in Property Speaking is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are those of individual authors, and do not necessarily reflect the view of Edmonds Judd. Articles appearing in Property Speaking may be reproduced with prior approval from the editor and credit given to the source.
Content Copyright © NZ LAW Limited, 2026. Editor: Adrienne Olsen. E-mail: [email protected] Ph: 029 286 3650

An agreement to lease and a deed of lease

April 9, 2026

Commercial Law, Leasing & Property, Property Law, Real Estate Transactions, Small Business Advice, Uncategorized

How are they different?

An agreement to lease and a deed of lease are two similar, but different, documents. The Law Association of New Zealand (TLANZ), formerly the Auckland District Law Society, provides a ‘standard’ form of both an agreement to lease and a deed of lease. Most commercial leases use this ‘standard’ form of agreement to lease or deed of lease.

Agreement to lease

An agreement to lease sets out the main commercial terms of a lease, such as the term, annual rent and rights of renewal. It can also contain further details regarding the fitout and other alterations which the tenant intends to do to ensure the premises are suitable for its business use. It can also set out how the cost and ownership of the fitout and alterations will be met between landlords and tenants.

Agreements to lease can often be conditional agreements while the tenant works through a due diligence process to ensure the property is suitable for its intended use, or to ensure that it can obtain the necessary territorial authority consents to operate its business.

Once any conditions have been satisfied, the agreement to lease is a binding agreement between the landlord and tenant; it can only be cancelled in accordance with the terms of the agreement. An agreement to lease states that a tenant must enter into a deed of lease on the standard TLANZ form once prepared by the landlord.

Deed of lease

Like an agreement to lease, the deed of lease also sets out the main commercial terms of the lease, such as the term, annual rent and rights of renewal. It goes further than the agreement to lease; it allows a tenant to assign the lease and additional terms set out the position in relation to the day-to-day management of the lease, such as maintenance obligations for both the landlord and the tenant, and what happens at the end of the lease.

Why you should also enter into a deed of lease

An agreement to lease does not allow the tenant to assign its interest in the lease. However, a deed of lease does allow this. If a tenant wishes to sell its business, they will need to enter into a deed of lease to have the benefit of the assignment provisions in the deed of lease. If the tenant wants to obtain bank lending for its business, the lender may want to see the deed of lease, and may require that a deed of lease is entered into as part of its financing approval.

The agreement to lease provides that the parties will enter into a deed of lease on the ‘then current’ form of deed of lease.

Most importantly, the agreement to lease also incorporates all of the terms of the standard deed of lease, so the landlord and tenant are agreeing to be bound by a document they have not seen or signed. In particular, if the parties have not received legal advice before entering into the agreement to lease, they may not have full knowledge of the terms of the deed of lease and what they have agreed to, and may find that the obligations in the deed of lease are not as they expected.

We can help

While agreements to lease can be helpful, we recommend that you enter into a deed of lease shortly after the agreement to lease is unconditional and/or the lease has commenced. This will help ensure that all parties have a full understanding of the terms of the lease and all the benefits (and obligations) offered under the lease.

We can help in advising on the terms of the agreement to lease and the resulting deed of lease prior to execution. We can also assist with documenting the terms of an agreement to lease into a deed of lease.

Considering Retirement Village Living

March 2, 2026

Estate Planning, Legal Guidance, Property Law, Retirement Planning, Succession Planning

A few years on from her decision to take out a reverse equity mortgage, and having enjoyed the benefits of releasing some of the capital tied up in her home, Karen is now feeling less confident about living on her own. Many of her old friends have moved away from her neighbourhood, and she is finding that she would like more support close at hand. She has decided to investigate moving into a retirement village.

This option offers several advantages. Karen would no longer need to worry about home maintenance, security, insurance, or rates. She would have ready access to assistance should she suffer a fall or other medical event. And if she feels like company, there would be plenty of like-minded people nearby.

However, Karen has been warned that there can be significant financial implications when selling a home and buying into a retirement village. To fully understand her position, she meets with her solicitor.

Her solicitor explains that most — though not all — retirement villages operate under Occupation Right Agreements (ORAs). Under an ORA, Karen would pay a capital sum in exchange for the right to live in her chosen unit. She would not own the land or building itself, and her right to occupy the unit would be subject to certain terms and conditions.

These conditions often include payment of a regular weekly fee for as long as the unit is occupied. There is also usually a deferred management fee (sometimes called an exit fee), which is deducted from the original capital sum when Karen leaves the village — whether that is because she chooses to move elsewhere or upon her death. In addition, there will be village rules governing what residents can and cannot do within their units and the wider village.

Karen’s solicitor takes the time to carefully explain the legal and financial implications, including how the move may affect the estate she intends to leave to her family. Once Karen fully understands her options, she is in a position to decide whether a move to a retirement village is the right step for her.

Mandy Rasmussen

Luke & Sally’s First Home Journey

September 16, 2025

Buying with Confidence, First Home Buyers, Inheritance & Property, KiwiSaver & First Home Grant, Legal Guidance for Home Buyers, LIM & Builder’s Reports, Luke & Sally’s Journey, Property Law, Real Estate Transactions, Settlement & Conveyancing

Luke and Sally recently began the exciting adventure of buying their very first home.

This opportunity came about following the sad passing of Steve, from whom they received an inheritance. This opened the door for them to take their first step onto the property ladder something they had long hoped for.

From the very beginning, Luke and Sally involved their lawyer and that made all the difference. Before signing anything, their lawyer carefully reviewed the draft Agreement for Sale and Purchase.

Together, they worked through the terms to ensure Luke and Sally understood them fully, and that the Agreement included all the conditions they needed to protect their interests.

For many first-home buyers, these conditions often include:

Finance approval – making sure lending is in place.
KiwiSaver withdrawal or First Home Grant – ensuring these funds can be used in time.
LIM report – checking council records for any issues.
Builder’s report – confirming the home is sound and safe.
Toxicology report – reassurance that the property isn’t contaminated with any toxic substances such as methamphetamine.
Any other conditions the buyers consider necessary – because every purchase is unique.

Once the Agreement was signed, Luke and Sally’s lawyer continued to guide them through every step of the transaction. They assisted with satisfying each condition, provided clear instructions for paying the deposit, and managed all the details between the Agreement going unconditional and settlement day. From liaising with the bank to preparing loan and mortgage documents, their lawyer ensured nothing was left to chance.

Finally, on settlement day, Luke and Sally received the keys to their new home with peace of mind knowing that every stage of the process had been looked after with care.

At Edmonds Judd, we encourage buyers to involve their lawyer from the very beginning. From reviewing the draft Agreement, through the conditional and unconditional phases of the transaction, to settlement itself — having the right legal guidance makes the journey smoother, safer, and far less stressful.

Here’s to new beginnings and secure decisions.

Rachael Beattie

1 2

Property Law