What you need to know when selling

You’ll need to:

• find a lawyer
• select a licensed real estate agent (or know how to sell the property yourself)
• decide on a selling price
• know how to deal with offers
• understand how to complete the transaction.

Setting a price for your house

Preparing to sell

You may need your tax details

You may need to give your tax details (for example, your New Zealand IRD number and taxpayer identification number) to your property lawyer or the person doing your conveyancing.

New Zealand IRD number

Selling property

You do not need to provide these details if you’re an NZ citizen (or have an NZ residence visa) and you’re:

• selling your main home, and
• living in NZ now.

What’s your main home?

Residential property tax rules

You may need to pay tax on any profit you make

You may need to pay tax on any profit you make on a property’s value when you sell it. It depends if you bought the house:

• from 29 March 2018 and you sell it within 5 years of buying it
• from 1 October 2015 to 28 March 2018 and you sell it within 2 years of buying it.

You will not need to pay tax if:

• the house is your main home
• you’ve inherited the house, or
• you now own it because of a relationship break-up.

Selling property

Leaky home claims when you sell

Your claim ends when you sell your house, but the new owners may be able to make their own claim.

Leaky homes

Selling a property after a natural disaster

Understand your rights and obligations when selling your damaged property after a natural disaster.

Selling property damaged in a natural disaster

Ways to sell property

You can sell your house yourself or use a real estate agent.

Selling your house privately

Selling with an agent

You can sell by auction, tender or at an advertised price.

Understanding the methods of sale

Using a real estate agent

An estate agent may help attract buyers to your property.

Find a licensed real estate agent

What to expect from your agent

Real estate agents have to follow a code of conduct, which sets out how they must behave and act.

Selling with an agent

If you have any problems with an agent, contact the Real Estate Authority (REA). They’re an independent government body that regulates the real estate industry.

Make a complaint about an agent

Receiving and making counter offers

At some stage of the sale process, you will hopefully receive one or more offers for your property. You have a number of options to consider.

Receiving and making counter offers

The sale and purchase agreement sets out what you’ve agreed with the buyer about the house sale, for example the price, chattels to be included and settlement date.

Understanding the sale and purchase agreement when selling

If your property is rented

If your property is rented, you must let your tenants know you’re selling. You must also get their permission if you need to enter the house to take photographs or show people the property.

You may need to transfer the tenancy and the bond to the new owner or give your tenants notice to leave.

Sale of a rented property

Depreciation on rental property

If you’ve claimed depreciation on your rental property in the past, you’ll need to take it into account when you sell your property and include it in your tax return (IR3).

Including depreciation in your tax return