The Power of the Nominee: How to Hand Off a Deal

In the New Zealand property market, you’ll often see the words "and/or nominee" on the front page of a Sale and Purchase Agreement. Most people leave it there because their lawyer told them to.

A professional trader leaves it there because it is an exit ramp.

Nomination is the process of signing a contract in your name (or your company's name) and then "nominating" a different person or entity to actually take the title at settlement.

Why Nomination is Not a Trade

In a Contemporaneous Trade, you are buying and then selling. There are two prices and two settlements. In a Nomination, there is only one settlement. You are essentially stepping aside and letting someone else take your place at the closing table for the original price.