The Buying Process

Making an Offer: How NZ Property Offers, Auctions, and Tenders Work

Quick Answer

New Zealand property is sold by four main methods: private treaty (conditional offer with negotiation), auction (unconditional on the day), tender (sealed bids by a deadline), and deadline sale (offers accepted up to a set date). Conditional offers let you include conditions like finance, LIM, and building inspection. Auction and tender offers are typically unconditional, so due diligence must be completed beforehand.

Private Treaty (Conditional Offer)

The most common method for standard residential sales. You submit a written offer on a sale and purchase agreement, which can include conditions such as: subject to finance approval, subject to LIM report, subject to building inspection, subject to the sale of your existing property, or subject to OIO consent. The seller can accept, reject, or counter your offer. Once both parties sign and all conditions are satisfied or waived, the agreement becomes unconditional.

Auction

At auction, the property is sold to the highest bidder on the day. Auction offers are unconditional — there are no conditions, and the successful bidder pays the deposit (usually 10 percent) immediately. You must complete all due diligence before the auction date. Set a firm maximum bid and stick to it. Auctions can move quickly, and it is easy to get caught up in the moment. Your lawyer should review the auction terms beforehand.

Tender

A tender is a sealed-bid process. You submit your best offer in writing by a specified deadline. All offers are opened by the seller (and their agent) after the tender closes. Tenders are typically unconditional, though conditional tenders are sometimes accepted. The seller chooses the best offer — which may not be the highest, as terms and conditions also matter. You usually have one chance to put your best offer forward.

Deadline Sale (Also Called Deadline Private Treaty)

A deadline sale is a hybrid method. The property is marketed with a set deadline by which offers must be submitted. Unlike a tender, offers can be conditional, and the seller can negotiate with any buyer before the deadline. This gives you more flexibility than a tender while still creating urgency. If your offer is accepted before the deadline, the sale proceeds.

Common Conditions to Include

If you are making a conditional offer, consider including: subject to finance (gives you time to confirm mortgage approval), subject to LIM report, subject to building inspection, subject to title search, subject to the sale of your existing property, and (for overseas buyers) subject to OIO consent. Each condition has a specified date by which it must be satisfied or waived. Your lawyer will help you draft appropriate conditions.

The Sale and Purchase Agreement

The sale and purchase agreement is the legal contract between buyer and seller. It is typically based on the standard ADLS (Auckland District Law Society) form, which your lawyer will review. It includes the purchase price, deposit amount, settlement date, chattels included (curtains, light fittings, appliances), and any conditions. Never sign an agreement without your lawyer reviewing it first — even if the agent says it is standard.

Your Next Step

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