Belinda Moffat is the Chief Executive of the Real Estate Authority (REA), the independent government agency that regulates the conduct of real estate professionals in New Zealand. REA produces the website Settled.govt.nz, which is designed to inform and guide consumers through the real estate transaction process from thinking of buying or selling, right through to moving in or out. For information about what to expect when working with a real estate professional, visit rea.govt.nz.

What are the minimum legal requirements sellers need to be aware of when listing their property?

“Buying or selling a home is likely to be one of the biggest financial transactions most people will make in their lifetime. There is a significant legal component to the process, and it’s important to understand your rights and obligations.

“REA recommends engaging a lawyer or conveyancer early in the sale process. They’ll help with preparing and reviewing agreements, handling the transfer of funds, and advising through the sale. Every home and every transaction is different, which is one reason professional advice is so important. However, here are a few of the legal basics you should know:

  • You should disclose any known issues that could affect the buyer, which may include things like weather‑tightness problems or other property defects, unconsented alterations, issues with the property title or planned developments nearby that might affect views or access. You don’t need to advertise these defects, but if you fail to make the proper disclosures to the ultimate buyer before you sign a sale and purchase agreement, you could put the sale in jeopardy and potentially face costly legal issues.
  • If you use a real estate agency to help sell your home, you’ll need to sign an agency agreement, which is a binding contract between you. This should be reviewed carefully, with the help of your lawyer or conveyancer, before signing. The agency agreement will include information such as accurate property details, including chattels and defects, the type of agency (sole or general) and its duration, plus commission rates and any fees (e.g. for marketing & advertising), broken down clearly. You can negotiate what’s in an agency agreement before you sign.

Licensed real estate professionals are legally obliged to disclose known defects to buyers. If you instruct them not to disclose a serious issue, under the Code of Conduct overseen by the Real Estate Authority, they’re required to terminate their agency agreement with you.

  • As part of the process, you will need to sign a sale and purchase agreement. This document places a number of legal responsibilities on you, such as vendor warranties, the date on which you must settle the transaction, and the provision of the keys. It is important that you read this document carefully and obtain legal advice on it before you sign.
  • All property transactions in New Zealand are undertaken in accordance with the Land Transfer Act, and the Property Law Act may also apply. This governs how the title in the property is transferred to another person. As we have said, it is important to engage your lawyer or conveyancing professional early so that they can guide you through the process.”

What are your recommendations when it comes to decluttering or depersonalising a space before viewings?

 “You will want to present your property in its best light, in a way that people can see themselves living in it. We recommend decluttering, cleaning and ensuring that everything is in good working order. If it is not, then you will need to disclose this to potential buyers.  Whether you choose to fix all issues or sell on an ‘as-is where-is’ basis is something you should discuss with your real estate professional and lawyer.

“Removing clutter can make your home look larger and potentially more appealing.  For storing items you want to keep but are adding clutter, consider a storage unit or organised boxes in the garage. Remember to declutter cupboards too – buyers will check storage during open homes. Tidy, organised cupboards suggest that the rest of the house is well looked after.

“Once decluttered, a thorough cleaning of every room will help your home look its best for photos and open homes. You may want to look at steam-cleaning carpets or hiring professional cleaners. It’s also a good time to take care of little things you may have been putting off, like leaking taps, broken drains, sticking doors, tired and light switches.

“It is also important to ensure that anything of financial or sentimental value is carefully packed away. During the sale process, you may have open homes and many people in and out of your house. You might want to take valuable items such as jewellery or technology items with you during open homes.”

Should sellers invest in renovations before listing their property for sale? How far should they go?

“When it comes to major renovations pre-sale, it’s important for sellers to think carefully about cost and whether they will recoup the investment. With big jobs like modernising a kitchen or bathroom, sellers should budget carefully to manage costs. A real estate professional or valuer may be able to give you advice on what renovations are likely to improve your return. Make sure you’re fully aware of the consent and compliance requirements in your area for any major renovation work you undertake and that you obtain the proper documentation to demonstrate that compliance to potential buyers.”

How important is the first impression when it comes to buyers, and what key elements influence that?

“First impressions matter to buyers, and that starts with the exterior of the home. 

Mow lawns, sweep paths, weed gardens, and mulch for neatness. Wash exteriors and windows; ensure fences, gates, and letterboxes are clean and functional. Something as simple as a fresh coat of paint on the front door, a new doormat, or a pot plant can make the entrance inviting and have potential buyers in a positive frame of mind before they walk through your door.”

Is there an ideal time of year to sell a home in New Zealand, or does it depend more on property type and location?

“Many people choose to sell their homes in spring and summer when there is good light and the property is at its best, and people are more likely to be out and about. Prospective buyers may have a little more time over the summer to go to open homes and do their research, and it is said that good weather can put people in a good mood, which may help motivate buyers. But ultimately, vendors will choose when it is right for them, and that is often dictated by life events and the reason for the sale.”

How does staging impact the success of a sale, and is it always necessary?

“Staging your home is an option to consider. It can be useful if your furniture is looking a little tired or dated. Staging can make your home look well styled and appealing, and it also de-personalises the property (by removing personal photos and ‘lived-in’ items), which can help prospective buyers picture themselves as owners. Bear in mind what staging will cost, noting that you may need to hire a storage unit for anything you’re removing from the home.

Increasingly, we are seeing the use of AI-generated staging in marketing materials.  We have recently issued guidance to real estate professionals, reminding them of the care that needs to be taken when using AI tools. The AI-enhanced photo needs to be a true representation of the actual home, and ought to also state whether or not the photos are AI-generated.  To avoid any issues, we encourage all buyers to personally inspect the property, or for someone they trust to do so. This ensures there are no surprises on settlement day.”