We help buyers to understand and comply with all legislation that affects New Zealand property. Two recent changes are amendments to the Overseas Investment Act 2005 and the Anti Money Laundering / Counter Terrorism Financing Act 2009, both of which require real estate agents to collect extra information about buyers and sellers of New Zealand residential property.
We will explain what information you need to provide when we start working together.
Overseas Investment Amendment Act 2018
All purchasers of residential land (including New Zealanders) need to complete a statement confirming whether this Act applies. Solicitors and conveyancers cannot lodge land transfer documents without this statement.
Residential land has been added as a new category of sensitive land that requires Overseas Investment Office (OIO) approval. The residential land definition captures residential and lifestyle land and includes bare land, apartments, and some mixed-use properties.
Any overseas person who wishes to buy residential or lifestyle land, must apply to the OIO for consent. An overseas person cannot purchase residential land solely for the purpose of holding it as an investment property. For more information go to www.linz.govt.nz
Anti-Money Laundering and Countering Financing of Terrorism Act 2009
The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the AML/CFT Act) now includes real estate agents. Customer Due Diligence (CDD) must be conducted by Real Estate Agents and requires us to obtain and verify the identity of the client. We take copies of all relevant documents.
We must obtain sufficient information to determine whether enhanced CDD needs to be conducted on the client. We must take reasonable steps to ensure that the information we gather is correct.
If we are not able to complete CDD on the client, we must not carry out a transaction for them or establish a business relationship with them. This applies to all circumstances where a client fails or refuses to provide information or documents that we have requested. This also applies if the information, data or documents that the client provides are inadequate. For further information visit www.justice.govt.nz