REA research shows home buyers less likely to obtain property documents and legal advice

The Real Estate Authority (REA) is reminding potential home buyers of the importance of thorough pre-purchase due diligence, as REA's 2026 research indicates a drop in the proportion of real estate consumers obtaining critical property documentation and seeking legal advice.

In REA’s 2026 Consumer and Public Perceptions Research [PDF, 1.7 MB] released this week buyers and prospective buyers reported being less likely than in the previous year to have obtained a Land Information Memorandum (LIM), title search, or property files before purchasing a property, and were significantly less likely to have consulted a lawyer/conveyancer.

REA Chief Executive Belinda Moffat says it is critical that consumers learn everything they can about a property before committing to a purchase.

“Buying a home is often the most financially significant purchase a consumer will ever make. Obtaining key property information documents is fundamental due diligence that a responsible buyer should always undertake.

”With first home buyers accounting for a substantial proportion of purchases during the period our research looked at [1], the results indicate how important it is for those who are new to real estate transactions to carefully research the property they hope to buy and take time to learn about the real estate transaction process.” 

A land information memorandum (LIM) provides a summary of property information held by the local council. It will show the consents granted for any work on the property and information such as the flood risk for the area and the rates. The property file at the council may contain relevant information that isn’t on the LIM such as a site plan and the original plans of the house. The property title has a record of legal rights and restrictions that can impact what you can do with the property and any access you need to provide to others.

“REA strongly recommends consumers engage a property lawyer or conveyancer early in the home buying process, as they can give advice on technical property documents and highlight important risks and issues. REA’s 2026 consumer research suggests fewer prospective home buyers are seeking legal advice before buying a home.  This is concerning given the complexity and risk involved in real estate transactions. While legal fees will be a consideration, the downstream costs that may be incurred if an important issue with a property is not identified before making an offer can be very high.

“It can be easy to fall in love with a home at first sight and want to act quickly to secure a bargain or to save costs or time by avoiding professional advice. However, we strongly recommend buyers take the time to do their due diligence and take advice to properly understand what they might be buying before making a commitment,” Ms Moffat says.

Those relatively new to the market, including first home buyers and those who have recently moved to New Zealand, are also encouraged to learn about the processes involved in buying and selling a home in New Zealand before they begin their home buying journey. REA’s consumer website Settled.govt.nz is a key resource full of information about buying and selling residential real estate.

“Only 48% of all real estate consumers in our survey reported that they had good knowledge of the end-to-end transaction process. Given these are people who had been involved in a transaction during the preceding 12 months, that level of understanding is concerning. Pleasingly, 61% of those who had interacted with REA’s consumer information website Settled.govt.nz, which is designed to provide information to people on the real estate transaction process, rated their knowledge highly.”

REA’s approved guides to the residential Agency Agreement and Sale & Purchase Agreement are also available in seven languages on rea.govt.nz and Settled.govt.nz, with around 95% of consumers who obtained the guides finding them useful.

 

Ends

1. Cotality First Home Buyers (FHB) report “In Q1 2026, [FHBs] accounted for 27.5% of property purchases across NZ, just short of the record high of 28.2% set in the final three months of last year.”; “Over the past 12 months, FHBs have purchased around 24,800 properties, the highest annual total since Q3 2021”

Research reports:

Annual Consumer Perceptions Research 2026[PDF, 1.7 MB](external link)

Annual General Public Perceptions Research 2026[PDF, 1.1 MB](external link)

Notes to research results cited in release

Q. Which, if any, of the following, did you obtain before purchasing the property?

Base: Buyers / prospective buyers

	LIM	A title search	Property files	A lawyer/ Conveyance
2026	33%	28%	26%	49%
2025	37%	34%	33%	59%

Q. Do you consider you have enough knowledge and understanding of the end-to-end process with respect to real estate transactions?

Base: All respondents

Consumer segment	% rating their knowledge 4 or 5 out of 5 (5= very knowledgeable)
Overall	48%
First home buyers	42%
Not aware of settled.govt.nz	39%
Interacted with settled.govt.nz	61%

 

Q. Did you find the guide useful?

Base: Consumers who received the guide

Guide	Rated 'Somewhat useful' to 'very useful'
Agency Agreement Guide	96%
Sale and Purchase Agreement Guide	94%

 About REA

The Real Estate Authority (REA) is the independent government agency that regulates the conduct of licensed real estate professionals in New Zealand. We license people and companies working in real estate, provide oversight of the code of conduct, oversee the complaints and disciplinary process for poor conduct by licensees, provide education and guidance to licensees to assist them to meet their regulatory obligations, and provide information to consumers about the real estate transaction process. REA is governed by a Board. The Chair is Rachael Dean. REA Chief Executive is Belinda Moffat.

People who have concerns about the conduct of a real estate professional can contact the Real Estate Authority (REA) – visit rea.govt.nz or call 0800 367 732. Consumers seeking independent information about buying and selling property can visit REA’s consumer website settled.govt.nz(external link).

About the research

The latest Annual Perceptions Research was conducted by NielsenIQ on behalf of the Real Estate Authority. The survey was carried out in two parts. Part one was in field between 27 April to 20 May 2026 and had 744 respondents. Part one of the survey consisted of people who bought, sold, put an offer or received an offer on a property in the last 12 months using a licensed real estate professional (referred to as ‘consumers’). Part two surveyed 744 people of the New Zealand general public. The fieldwork for part two of the survey took place between 27 April to 7 May 2026. All REA claims are based on research conducted by NielsenIQ reported to us on 26 June 2026. A full copy of the report can be made available on request.

For more information contact Aaron Alexander, REA Communications and Engagement Manager on 027 237 7196 or via media@rea.govt.nz