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Option To Buy Land Agreement Template for New Zealand

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Key Requirements PROMPT example:

Option To Buy Land Agreement

"I need an Option to Buy Land Agreement for a 5-hectare commercial property in Auckland, with a 12-month option period starting March 2025, including specific conditions for obtaining resource consent for a retail development."

Document background
The Option to Buy Land Agreement is a crucial document in New Zealand real estate transactions, used when a potential buyer needs to secure the right to purchase property while conducting due diligence, arranging financing, or obtaining necessary approvals. This agreement type is particularly valuable in property development scenarios, allowing developers to secure future development sites while managing risk. The document must comply with New Zealand's property law framework, including the Property Law Act 2007, Land Transfer Act 2017, and where applicable, Te Ture Whenua Maori Act 1993. It typically includes detailed terms about the option period, purchase price, exercise mechanisms, due diligence rights, and conditions precedent to exercise. The agreement is especially relevant when dealing with complex land transactions requiring resource consents, overseas investment approval, or extensive due diligence investigations.
Suggested Sections

1. Parties: Identification of the Grantor (landowner) and Grantee (option holder), including full legal names and addresses

2. Background: Context of the agreement, including brief description of the property and parties' intentions

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpretation

4. Grant of Option: Core terms of the option grant, including exclusivity and duration

5. Option Fee: Details of the option fee, payment terms, and whether it's refundable or forms part of the purchase price

6. Exercise of Option: Process and requirements for exercising the option, including notice requirements

7. Purchase Price: Specified purchase price or mechanism for determining it

8. Deposit: Requirements for deposit payment upon exercise of the option

9. Settlement: Timeline and requirements for completing the purchase after option exercise

10. Title and Property Investigations: Rights regarding title review and property investigations during the option period

11. Warranties: Standard warranties from both parties regarding authority, title, and property condition

12. Default and Termination: Consequences of default and circumstances for termination

13. Notices: Process for giving formal notices under the agreement

14. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and assignment

Optional Sections

1. Due Diligence Conditions: Used when the grantee requires specific due diligence rights during the option period

2. Resource Consent Conditions: Required when the option is conditional on obtaining specific planning or resource consents

3. MÄori Land Provisions: Required when the land includes or affects MÄori land interests

4. Development Conditions: Used when the option is linked to specific development proposals or requirements

5. Overseas Investment Approval: Required when the grantee is an overseas person requiring OIO approval

6. GST Provisions: Detailed GST treatment when either party is GST-registered or the transaction has GST implications

7. Lease Provisions: Required when the property is subject to existing leases that need to be addressed

8. Subdivision Provisions: Used when the option relates to land that requires subdivision

9. Environmental Provisions: Required when there are specific environmental concerns or requirements

Suggested Schedules

1. Schedule 1 - Property Description: Detailed legal description of the land, including title references and area

2. Schedule 2 - Option Terms: Key commercial terms including option period, fee, and purchase price

3. Schedule 3 - Form of Exercise Notice: Template notice for exercising the option

4. Schedule 4 - Special Conditions: Any special conditions specific to the property or arrangement

5. Schedule 5 - Plan of Land: Survey plan or diagram of the property

6. Appendix A - Certificate of Title: Copy of the current title for the property

7. Appendix B - LIM Report: Land Information Memorandum report if already obtained

8. Appendix C - Due Diligence Information: List of documents and information provided for due diligence

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





























Clauses

































Relevant Industries

Real Estate

Property Development

Construction

Agriculture

Commercial Property

Residential Development

Infrastructure

Tourism

Retail

Industrial Development

Urban Planning

Land Banking

Environmental Services

Relevant Teams

Legal

Real Estate

Property Development

Investment

Commercial

Acquisitions

Planning and Environment

Project Management

Risk Management

Finance

Relevant Roles

Property Lawyer

Real Estate Development Manager

Land Acquisition Manager

Property Investment Manager

Real Estate Agent

Property Developer

Commercial Director

Legal Counsel

Property Portfolio Manager

Development Director

Urban Planner

Project Manager

Chief Investment Officer

Land Surveyor

Resource Management Consultant

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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