Further Terms of Sale

1. Interpretation

1.1 In this Agreement, unless the context otherwise requires:

"Head Title" means Certificates of Title CB 699165;
"Plan" means the plan titled "Proposed Sub-division of Lot 3, DP74753, a copy of which is attached; and
"Relevant Authority"means any government, local, statutory or non-statutory authority or body having jurisdiction over the land comprised in the Head Titles.

2. Conditions

2.1 This Agreement is subject to and conditional upon the Vendor obtaining:

2.1.1 All necessary consents and approvals for the sub-division of the land comprised in the Head Title(s) to create a separate fee simple title for the property by 31 October 2014; and

2.1.2 The issue of a separate certificate of title for the property by 31 October 2015;

In each case on terms and conditions which are entirely acceptable to the Vendor in all respects.

2.2 The Vendor may in its sole discretion extend the time provided herein by notice in writing to the Purchaser for a period not exceeding three (3) calendar months. Such notice to be given on or before one month prior to the dates referred to in Clause 2.1.1. This condition is inserted for the sole benefit of the Vendor.

3. Sub-division

3.1 The Purchaser acknowledges that:

3.1.1 The Plan is conceptual only and sub-division consent has not yet issued. Areas and descriptions are subject to final survey; and

3.1.2 A separate certificate of title has not yet issued for the property and a sub-division plan will need to be deposited to allow such issue.

3.1.3 They shall, at their cost, install a vehicle crossing at the road frontage to gain access to the property in compliance with the standards required by the Selwyn District Council.

3.2 The Vendor shall at the Vendor’s expense:

3.2.1 Subdivide the land comprised in the Head Title generally in accordance with the Plan and Resource Consent; and

3.2.2 Obtain a separate certificate of title for an estate in fee simple for the property.

3.3 All measurements and areas are subject to any variation which may be found necessary upon final checking by the Vendor, the Selwyn District Council, Land Information New Zealand, or any other Relevant Authority and the Purchaser shall not be entitled to make any objection or requisition or claim for compensation in respect of any such variation.

If the area of any allotment shall change by more than 5% of the area shown on the plan, then the Purchaser shall have the option to cancel this contract within 5 working days of being notified of any change in area.

3.4 The Vendor at all times reserves the right to grant or receive the benefit of any easements, rights, restrictions, and other encumbrances, rights and obligations which:

3.4.1 Are required in order to satisfy any conditions or any consent or permit, or requirement of any Relevant Authority;

3.4.2 In the sole discretion of the Vendor are deemed to be necessary or desirable in respect of the development of the land comprised in the Head Titles provided that:

3.4.2.1 In the opinion of the Vendor, such matter will substantially and materially affect the Purchaser’s use or enjoyment of the property; and

3.4.2.2 Such matter does not reduce the value of the property or impose any unreasonable obligation or burden on the Purchaser or unreasonably limit the Purchaser’s use and enjoyment of the property.

3.4.2.3 The Vendor shall inform the Purchaser in writing of the requirement for such right as provided for in Clause 3.4.

3.4.3 The Purchaser accordingly must:

3.4.3.1 Take title to the property subject to, and with the benefit of, any such easements, rights, restrictions and other encumbrances, rights and obligations; and

3.4.3.2 Sign all documents (which will include any terms considered reasonably desirable by the Vendor’s solicitors) and do such acts and things as may be required to obtain the deposit of a subdivision plan, and the establishment/registration of any such easements, rights, restrictions, and other encumbrances, rights and obligations as above.

4. Covenants

4.1 The Purchaser acknowledges that the title to the property shall be subject to Covenants generally in the form attached hereto ("the Covenants") and the Purchaser agrees to be bound by the Covenants. The Vendor may make alterations to the Covenants provided that the Purchaser shall not be bound to accept any such alteration which, in the reasonable opinion of the Purchaser, has a significant detrimental effect upon the Purchaser. The Vendor shall be entitled to register the Covenants prior to settlement.

5. No Caveat

5.1 The Purchaser agrees that it will not lodge a caveat against the Head Title prior to the survey plan being deposited at Land Information New Zealand and the issue of separate Certificate of Title for the Property. In the event of the Purchaser lodging a caveatagainst either the Head Title or any other title which is not part of the Property, the Vendor may forthwith take all necessary steps at the Purchaser’s expense to secure the immediate removal of such caveat and the Purchaser agrees that the production of this Agreement to the District Land Registrar at Christchurch shall entitle the District Land Registrar to remove the caveat from the title(s). If the Purchaser lodges any caveat or procures the lodgement of any caveat in contravention of this clause, the Purchaser shall pay to the Vendor liquidated damages of $1,000.00 (one thousand dollars) per day for so long as such caveat remains registered.

6. By-Laws

6.1 The Purchaser acknowledges receipt of a copy of the sub-division By-Laws attached to this Agreement ("the By-Laws") and agrees to comply with the By-Laws and ensure that all contractors, sub-contractors or workmen employed or working on the property comply with the By-Laws. The Vendor may make alterations to the By-Laws from time to time provided that the Purchaser shall not be bound to accept any such alteration which has a significant detrimental effect upon the Purchaser.

The Purchaser shall be liable for costs of any non-compliance as detailed in Clause 13 of the By-Laws.

7. Accrual Clause

7.1 For the purposes of the financial arrangements rules in the Income Tax Act 2007, the parties agree that the Purchase Price is the lowest price the parties would have agreed for the sale and purchase of the property, on the date this agreement was entered into, if payment was required in full at the time the first right in the contracted property was transferred.

8. Damage Remediation Bond

8.1 On settlement or earlier possession of the Property (if applicable), the Purchaser shall pay to the Vendor a Bond of $2,500 ("the Bond") which the Vendor is entitled to apply towards repair or reinstatement of any damage caused to the infrastructure of the sub-division or to any neighbouring lots during the course of construction of the dwelling.  The procedure for the refund or retention of the Bond shall be as follows.

8.2 At any time up to six months after the issue of a Code of Compliance Certificate for the first dwelling built on the Property, the Purchaser shall be entitled to apply to the Vendor for the refund of the Bond.  The application shall be in writing and must be accompanied by a copy of the Code of Compliance Certificate for the dwelling.

8.3 As soon as practicable after receipt of the Purchaser's application, a representative of the Vendor will inspect the Property, the Infrastructure of the sub-division, and the neighbouring Lots to determine if there has been any damage caused to the infrastructure of the sub-division (roads, footpaths, berms, kerbs, trees, irrigation and street furniture) or to any fences of neighbouring lots during the course of construction of the dwelling.

8.4 If, in the opinion of the Vendor, there has been damage caused, the Vendor shall notify the Purchaser in writing of the particulars of the damage and will specify a reasonable time within which repairs or reinstatement of the damaged parts must be completed by the Purchaser.

8.5 If at the expiry of the period referred to in Clause 8.4 above (or such later date as the Vendor may agree in writing), the Purchaser has not repaired or reinstated the damage, the Vendor will be entitled to apply the Bond in meeting the costs of repair or reinstatement, and any amount remaining after the repair or reinstatement shall be refunded to the Purchaser.  Any repair or reinstatement costs in excess of the Bond amount shall be payable by the Purchaser and/or the current owner of the property (as applicable).

8.6 If in the opinion of the Vendor after carrying out the inspection in Clause 8.3 there has been no outstanding damage caused, the Vendor shall refund the Bond to the Purchaser.

8.7 The Vendor is not obliged to hold the Bond in a separate account, nor to account to the Purchaser for any interest earned on the Bond.

8.8 If the Purchaser does not apply in writing for the refund of the Bond within six months of the issue of a Code of Compliance Certificate for the dwelling, the Vendor shall be entitled to permanently retain the Bond.

8.9 In the event that the Purchaser sells the Property without building on it, the Vendor shall continue to hold the Bond on the terms set out above and will make any refund of the Bond to the owner of the Property at the time the dwelling is built.  It is recommended that the Purchaser make provision in any agreement to sell the Property for the party purchasing to refund the Bond to the Purchaser direct.