In the New Zealand property market, purchasers are often surprised to learn that homes sold by a deceased estate typically come with no vendor warranties. These properties are almost always offered on an “as is, where is” basis, and the responsibility for understanding the property’s condition shifts squarely to the buyer.

This approach is not a loophole or an aggressive vendor strategy—it reflects long-standing legal and commercial realities underpinning estate administration. Understanding this dynamic enables purchasers to approach estate sales with clarity, confidence, and an appropriate due diligence framework.

Executors Cannot Give Statements Or Verify

Under the standard ADLS Sale and Purchase Agreement, vendors usually provide a series of warranties—confirming matters such as unconsented works, weathertightness, neighbourhood disputes, and the working order of chattels.

In an estate sale, however, the executors or trustees:

• did not live at the property,
• have no first-hand knowledge of historic alterations or issues, and
• cannot reliably confirm the accuracy of the standard warranties.

Providing warranties without personal knowledge exposes the executors to legal and fiduciary risk. As a result, non-title warranties are routinely deleted during the drafting process.

Protecting The Estate From Liability

Executors have strict fiduciary duties. They must preserve the assets of the estate, minimise liability risks, and distribute the estate in accordance with the will or Administration Act. If they were to give warranties that later prove incorrect, the estate—and potentially the executors personally—could be exposed to claims for breach.

Such claims can:

• delay the administration of the estate,
• reduce the value available for beneficiaries, and
• result in complex and costly litigation.

Removing warranties ensures the estate can be wound up efficiently and without lingering risk.

Estate Transactions Are Designed To Be Low-Risk For The Vendor

An estate is not an ongoing commercial entity. It has a defined purpose and a finite life: to collect assets, settle debts, and distribute funds. Taking on future contingent liabilities undermines that purpose.

This is why executors rarely agree to:

• warranties,
• undertakings about the property's condition,
• representations about works carried out by the deceased, or
• assurances regarding chattels or defects.

The market accepts this risk allocation and adjusts expectations accordingly.

Purchasers Still Receive Good Title

Although warranties regarding property condition are disclaimed, the estate must still provide what the law requires:

• good and marketable title,
• correct legal descriptions,
• proper authority to transfer, and
• compliance with the statutory framework for estate administration.

These obligations cannot be contracted out of and remain fully intact.

What Purchasers Should Do

Given the absence of vendor warranties, buyers need to undertake a robust, front-loaded due diligence process. This includes:

• a full LIM review,
• a council file inspection,
• builder’s and plumbing reports,
• checking for unconsented works,
• reviewing the title and registered interests, and
• confirming insurance and finance positions early.

In an estate sale, due diligence is not optional; it is critical.

Key Takeaway

Deceased estate sales operate under a different risk profile. The absence of warranties reflects the executors’ lack of personal knowledge and their obligation to protect the estate from avoidable liability. For purchasers, this means approaching the transaction with a heightened focus on independent investigations and professional advice.

If you would like us to review an estate property, NZ Legal can provide comprehensive due diligence, highlight areas of risk, and ensure you proceed on a fully informed basis.

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