How to purchase a property in New Zealand? 

Buying a home in an unfamiliar country is not easy, which is why we’ve written this guide to help you understand the process of buying a property in New Zealand. 

The New Zealand real estate market operates in a flow 

The vast majority of people will choose to sell their properties through real estate companies, and only a very small number of people will sell their properties privately. All real estate companies and salespeople hold licenses under the Real Estate Agents Act 2008 and are regulated by the Real Estate Agents Regulatory Authority, a government agency. In order to ensure that industry insiders comply with industry ethics, the Government has also promulgated a Code of Conduct.  

In New Zealand, salespeople represent sellers. As a buyer, you need to get the legal advice and reports you need on your own. 

• Real estate companies promote properties on behalf of sellers and help sellers negotiate with buyers.  
• Sellers are required to pay commissions to the real estate company on a pro-rata basis and at a price.  

1. You will need a New Zealand bank account number and tax id number 

You must provide a New Zealand Tax Number (IRD number) to make the closing and take ownership of the land/property. This applies to all land/property purchases and purchases in New Zealand.   

Overseas buyers or sellers without a New Zealand tax id must open a New Zealand bank account before they can apply for a New Zealand tax number. Overseas buyers or sellers must also provide a tax ID/detailed description in their country of origin.  

How to Apply for a  
 
Tax ID (Non-Resident/Offshore Individual) Applying for a Tax Id For An Offshore Individual means: 

• New Zealand citizens who have lived overseas for the past three years or more, or 
• A person who does not hold a New Zealand residency visa issued by Immigration New Zealand, or 
• A person who holds a New Zealand resident visa and has resided overseas for the past 12 consecutive months 

 
To apply for a tax id, you need to provide a clear copy of the following documents: 

• Photo ID, such as a passport or overseas driver’s license 
• Proof of address you are using now or recently, such as electricity bills, water bills, bank bills, etc 
• Proof of a fully available New Zealand bank account in your own name, such as a new bank in the bank where your account is located, a bank reconciliation with deposit and withdrawal details 
• Your nearest Taxpayer Identification Number (TIN) certificate for your overseas tax country/tax jurisdiction 
• Activities you intend to do in New Zealand.  

The following documents are required for a child under your guardianship to apply for a tax id number: 

You 

• Photo ID 
• Proof of your current or recently used address 

Children 

• Clear copies of proof of your relationship with the child under your guardianship, such as a birth certificate, legal documents showing the names of the child and guardian 
• Proof of a fully available New Zealand bank account in the child’s own name 
• The child’s own nearest Overseas Taxpayer Identification Number (TIN) certificate of the tax jurisdiction 

2. Hire a buyer’s lawyer 

A lawyer is an essential role in the process of buying a home in New Zealand. The pre-transaction lawyer needs to explain the contract to the buyer, explain the main points, and help the buyer understand the rights and obligations. When trading, lawyers need to supervise funds and clarify property rights. Keep the contract after the transaction, ensure property rights, etc. When do you hire a lawyer? If your property is an auction, it is important to find a good lawyer before participating in the auction, because once the auctioneer drops the hammer, it means that the contract will be executed unconditionally. 

3. Obtain pre-approval of loans from local banks 

If you want to take out a loan to buy a home in New Zealand, then first get a pre-approval of a bank loan. After the loan is pre-approved, you can clearly know the amount of your loan, so that you can take a targeted look at the house and buy a house at any time when you look at the house of the central instrument. At present, only a very few banks in New Zealand recognize overseas income, if you do not have local Income in New Zealand and need a loan to buy a house, it is recommended to find a local professional loan intermediary for advice. 

4. check the housing documents 

Before you see a satisfactory house and are ready to make a bid, be sure to carry out the necessary inspections of the house. Be sure to ask the selling agent for a LIM (Land Information Memorandum), a Sales Agreement (Contract for Sale of a House), and a Title (Title). Building Report requires a professional surveyor to inspect. If purchased by negotiation or tender, you can enter into an unconditional or conditional contract. If you buy through an auction, you can only enter into an unconditional contract.  *Important* We recommend that you seek independent legal advice before purchasing a property, and consult or commission a professional body to issue relevant reports, such as valuation reports. Sometimes, you may also need to seek the advice of a registered appraiser, architect, or another real estate professional.  

5. Buy a house 

Once an unconditional contract is signed, neither the buyer nor the seller can change their minds. If the contract is conditional, the buyer is responsible for meeting these conditions before the expiry date.  

The buyer pays a deposit (usually 10% of the total purchase price) to the real estate agent, which is required by law to be held by an audited trust account and appropriated when legally authorized. After agreeing on the delivery date with the seller and the agent, ensure that the full payment is paid on the day of delivery. After signing all the documents for the delivery of the house, the lawyer will also assist you in finally reviewing the various documents and circumstances of the house, on the day of delivery, the lawyer will call the seller with the balance, and after the delivery is completed, the buyer will accept the new property documents. Title deeds are not used in New Zealand to register titles. After the completion of the closing, the lawyer notifies the government to modify the property registration of the computer system.  

Congratulations, you already own a Property in New Zealand.  

Ways to find listings for sale 

HomeSpec has a large number of listings for sale. We add new listings every month, so you’ll find your perfect home here.