The New 11th Edition ADLS Agreement provides a Covid Clause which deals with settlements in the event that either the country, or the region in which the property is located, go into lockdown so that people are unable to move houses. This scenario is becoming less and less likely given the Government’s new traffic light settings as even the red traffic light setting allows people to relocate anyway in NZ. The standard ADLS clause does not however deal with how settlements would progress in the event that the vendor or purchaser is either Covid positive or a household contact and is isolating.
We have sought guidance from the Property Law Section in relation to this issue, and their advice is that this situation would need to be dealt with on a case by case basis. The Government’s current guidance requires Covid cases and their household contacts to isolate in place, and only leave their home for very specific reasons which don’t include moving house. Parties may however be able to agree to delay settlement until an infected party is better and asymptomatic. As always, in these uncertain times it is important for all involved to remain reasonable and considerate of the other party’s position. If you need assistance with drafting a bespoke clause for this scenario, please don’t hesitate to get in touch.
If you have any questions please do not hesitate to get in touch.
Receive email updates as we regularly share our expertise on hot legal topics and key industry updates.