I've been given a Auckland Law society Sale and Purchase agreement with clause 6.2 crossed out barr the first sentence.

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Customer: Hi Pearl, I've been given a Auckland Law society Sale and Purchase agreement with clause 6.2 crossed out barr the first sentence. It relates to title and boundary and I would like to know the worst case scenario of signing with this clause removed. Thank you
JA: What state are you in? It matters because laws vary by location.
Customer: Gisborne, New Zealand
JA: What steps have you taken so far?
Customer: I had discussed it with my lawyer originally over a year ago and he had advised caution but I didnt really get a clear understanding of why and what the ramifications could be.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: Originally when I questioned the removal of the clause with the owner and said I wanted to get some legal advise, the owners went could on the sale stating to much to and fro with lawyers and he chose to cancel the sale. The property has just be offered to the tenant again so before I made an approach I just would like to get clarity on this clause.
Answered by Chris The Lawyer in 5 mins 1 year ago
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Chris The Lawyer
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Chris The Lawyer, Expert

Hi
I am a New Zealand lawyer based in Wellington and will help you with your question today. Please give me a minute to read the question

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Chris The Lawyer, Expert

I would be very cautious about issues in relation to title and boundary. It can depend on the nature of the property, but if this is rural property then it could be difficult unless you had a survey to check against the title so that you knew exactly where the boundaries were. As for the title, you can get this properly checked through Landonline, and your solicitor could do that. It is unusual to delete this clause, and I would be curious why the owner has done this

Customer
Thanks Chris. It is a commercial premises. There is a right of way behind the building, but also the neighbouring building had a party wall. That building has now been demolished, I had originally suspected it may have had something to do with it? And because of the party wall they had preferred to delete the clause? Is that a potential reason? I guess if I re-approach them and ask whether now that the building is gone, would they reinstate the clause?
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Chris The Lawyer, Expert

Those issues will certainly complicate the title as there may be an easement about the party wall which needs to to be removed from the title, and there may be an effect on the ROW. So the title may need some changes which will come at a cost to the new owner if they will not do the changes

Customer
Great info thanks Chris you've been very helpful.
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Chris The Lawyer, Expert

Glad to help

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