Document background
The Gap Indemnity Agreement serves as a critical risk management tool in New Zealand property transactions. It is typically required when there is a time difference between the settlement of a property transaction and the registration of title transfer in the land registry system. This document becomes particularly relevant in situations involving complex property transfers, multiple parties, or when immediate registration is not possible. The agreement details the indemnifier's obligations to protect against risks during this period, the scope of coverage, and claim procedures. It operates within the framework of New Zealand property law and financial regulations, providing security to both purchasers and lenders. The Gap Indemnity Agreement has become increasingly important in modern property transactions where electronic settlements are common but registration gaps still exist.
