Read Time: 4-5 minutes.
Every mortgage advisor has seen this condition on the front page of an agreement.
But how does it actually work?
Here’s a case where we used it.... and it saved the deal in less than a day.
My client had New Zealand Permanent Residency but had just returned from a 10-year stint in Amsterdam.
They were ready to buy.
Pre-approval done.
KiwiSaver lined up.
Offer prepared.
But there was one catch:
They hadn’t been physically present in NZ long enough to meet the 183-day rule.
Under the Overseas Investment Act (OIA), Permanent Residents can only buy residential land if they’ve spent at least 183 days in NZ in the past 12 months.
This client had only been back for a few weeks. So, they weren’t eligible — yet.
But the fix was fast: tick the OIA clause, apply for consent, and buy some time.
If the client had signed an agreement without ticking the OIA consent box, they would have been warranting that consent wasn’t required.
If they were wrong? They’d be in breach of the agreement — and the deal could collapse.
To legally buy residential land, a buyer must:
1. ✅ Be a New Zealand tax resident
2. ✅ Hold New Zealand Permanent Residency
3. ✅ Have been physically present in NZ for 183+ days in the past 12 months
If they fail point 3, they need OIA consent — but they can still buy.
In the Conditions section of the agreement, tick Yes beside OIA consent required.
Set an OIA condition date (we used 10 working days).
This activates clause 9.6(1), making the agreement conditional on consent.
Our client applied at 10am and was approved that same afternoon.
The deal stayed on track.
Everyone was relieved.
OIA consent lasts for 12 months from approval.
So, even if your client doesn’t meet the 183-day test today, they likely will within that window — and won’t need to reapply if a later deal falls through.
This test only applies to one purchaser.
If your client has a de facto partner who qualifies (as a citizen or eligible Permanent Resident), they can use their partner’s status under Regulation 45.
They don’t need to meet any of the eligibility tests themselves.
This exemption is powerful — especially when one partner is new to NZ.
Know an advisor working with returning residents or mixed-status couples?
Send this their way before someone ticks the wrong box.
