Extra Clauses – Protection vs Practicality

This Week’s Tip: Extra Clauses – Protection vs Practicality

When a property has an issue that needs to be disclosed, many owners naturally ask their lawyer to include an extra clause in the sale and purchase agreement.

That is often the right starting point. However, the strongest legal protection doesn’t always create the smoothest transaction.

Over the years, we’ve seen situations where an extra clause gave excellent protection to the vendor but created difficulties for the buyer’s bank. The bank may require additional approvals, ask more questions, or simply take longer to assess the application. In today’s market, where many buyers have low equity and stricter lending criteria, even a small delay can affect the outcome of a sale.

Every situation is different.

Sometimes the best solution isn’t adding another clause. It may be removing an unconsented structure, capping off an unused bathroom, or resolving the issue before the property goes to market. In other cases, the work may fall under an exemption from building consent requirements, meaning the concern isn’t as significant as first thought.

Over the past 16 years, we’ve dealt with countless situations involving decks, pergolas, additional bathrooms, tiled showers, unconsented alterations and questions around defective title. The right solution is rarely one-size-fits-all.

That’s why I always recommend discussing these matters early with your real estate agent, your lawyer and, where appropriate, your lender. A practical conversation between all parties often leads to a better outcome than relying on one perspective alone.

The goal isn’t simply to maximise protection. It’s to achieve the right balance between protecting your interests and keeping the sale moving forward.