The solicitor’s approval clause is often misunderstood. It is sometimes used as a selling point to encourage buyers to sign a Sale and Purchase Agreement quickly, but it does not act as a safety net that allows you to walk away if you change your mind or later discover issues with the property. In New Zealand property transactions, it is common to see a solicitor’s approval clause included in a Sale and Purchase Agreement. Many first home buyers assume this clause gives them the right to review the contract with a lawyer and cancel the transaction if anything is not right after the fact. However, that is not how it works in practice! What the solicitor’s approval clause is actually for The solicitor’s approval clause is generally very limited in scope. Its purpose is to allow your lawyer to check the agreement for legal accuracy and make minor corrections if needed. This might include things like: correcting incorrect names or details fixing settlement dates or key dates that are clearly wrong confirming the deposit details or payment instructions making minor administrative or technical amendments It is essentially there to tidy up errors in the document, not to give you a broad escape route from the contract. The common misunderstanding A common misconception is that if something goes wrong, or if you later discover an issue with the property, your lawyer can use the solicitor’s clause to get out of the agreement. For example, buyers sometimes believe they can rely on this clause if: they realise the property is not insurable the bank declines finance they forgot to include a key condition like a building report they simply change their mind after signing Unfortunately, the solicitor’s approval clause does not operate as a general “get out of contract free” condition. Once the agreement is signed by both parties, you are legally bound to complete the transaction, unless there is a specific condition in the contract that allows you to cancel. Why it is sometimes used in practice In some cases, agents may mention the solicitor’s approval clause as a way to reassure buyers and encourage them to sign quickly, or buyers may include it themselves thinking it will protect them until they can engage a lawyer. While it does allow a lawyer to review the contract after it has been signed, it should not be relied upon as a substitute for proper legal advice before signing. The important thing to know is that it is not designed to protect you from missing important due diligence. That protection needs to come from properly drafted conditions in the agreement before it is signed, which is why you should talk to a lawyer first. If you are buying a property, the safest approach is to speak with your lawyer before signing the Sale and Purchase Agreement. That way, your lawyer can help ensure the right conditions are included from the start, rather than trying to rely on a clause that was never designed to get you out of a bad deal. Talk to our team today, and we’ll make sure you’re protected from the beginning.
