Healthy home standards compliance from 1 July 2025
First introduced in 2019, healthy home standards are the minimum legal standards expected of rental properties in New Zealand. These include:
- Heating (provision of functioning and fixed (not portable), heaters in the main living room)
- Ceiling and underfloor insulation, and
- Adequate ventilation (functioning doors and windows, and extractor fans in the kitchen and bathrooms).
From 1 July 2025, all landlords are responsible for ensuring their rental properties comply with healthy homes standards (and continue to comply with them over time). Landlords who do not comply will be in breach of the Residential Tenancies Act 1986 and can be penalised up to $7,200 per breach. Landlords who are ignorant of these changes or disorganised will not be excused.
Landlords in new or renewed tenancy agreements must include a signed statement detailing the property’s compliance with the standards. Failing to do so can result in a penalty. There are also penalties to the landlord if they provide misleading information in compliance statements.
If you are a tenant and you are concerned that your rental property does not comply with healthy homes standards, we recommend having a friendly chat to your landlord first. Failing that, please contact us and we can help you explore your options.
On the other hand, if you are a landlord and are concerned about your obligations under the healthy homes standards, please come and see us for advice.
Sunset clauses – the new bill introduced into Parliament
The Property Law (Sunset Clauses) Amendment Bill was introduced to Parliament on 9 April 2025 and is tracking towards its first reading. The bill is aimed at restricting sellers developing vacant plots of land from using ‘sunset clauses’ to cancel sale and purchase agreements. It also provides an extra layer of protection to buyers who, in good faith, have made the commitment to purchase the property.
In this context, a ‘sunset clause’ is a provision added to an agreement for the sale and purchase of a plot of land in development which allows the seller or buyer the option to cancel the agreement if the development is not complete by the specified date.
There have previously been situations in which sellers have used these clauses to cancel an agreement, where there have been delays in development, only to then go and list the property at a higher price.
This legislation would require the seller to obtain the buyer’s written consent to cancel the agreement under a sunset clause. There would also be the requirement to give sufficient notice of, and reasons for, the proposed cancellation to the buyer in advance. This is the extra layer of protection given to the buyer.
If the buyer does not consent to the agreement being cancelled, the seller would need to apply to the High Court for an order permitting the cancellation. On the seller’s application, the court would only make the order if it is satisfied that its making would be ‘just and equitable in all the circumstances.’ The court would consider various factors including whether the seller has acted unreasonably or in bad faith, the reason for the delay in completing the development, whether the land has increased in value and the effect of the cancellation on the buyer.
If this law is passed and you are a seller or buyer who seeks to activate a sunset clause, please get in touch with us – we would be happy to assist you.
Real estate agent commission – claim or not to claim?
Before a real estate agent lists a seller’s property, the parties enter into a ‘listing agreement’ or ‘agency agreement,’ authorising the agent to sell the property on the seller’s behalf.
The real estate agent receives a commission (a percentage of the sale proceeds) for introducing the buyer to the property. The real estate agent usually takes their commission out of the deposit the buyer pays when the agreement for sale and purchase becomes unconditional.
However, there are some situations in which an agent is not entitled to be paid their commission:
- Where there is no listing agreement in place
- If an agreement for sale and purchase does not become unconditional and is cancelled, and
- If the property is pulled from the market and the seller cancels the listing agreement (but note that the agent may still charge a fee).
If you are considering selling your property and have any questions about entering into a listing agreement, please come and see us for advice first.