Property Transactions Tips

Here are some issues that may need attention:

• Builders’ or engineer’s reports. It may be necessary to insert a condition in the contract making the purchase subject to the purchaser being satisfied with the results of these reports.
• Should you get a Land Information Management (LIM) report? This is provided by the local authority and will give information on zoning and all matters over which it has jurisdiction, including building consents that have been obtained for any additions, alterations, or installations.
• Issues around title, such as freehold, cross-lease, and unit title, which may involve owners in rights and obligations on which we can advise.

• Clients contemplating purchasing an apartment in a complex need to get legal advice before committing unconditionally to an agreement to purchase.
• Correctly specifying chattels in the agreement for sale and purchase — failure to include a chattel can result in dispute. It is important to check that chattels are not the subject of a hire purchase agreement or other security.
• If there is more than one purchaser, we can advise about various joint ownership issues including the implications of ownership as joint tenants or as tenants in common. It is especially important to seek advice in the case of de facto relationships concerning issues which may arise under the Property Act.
• Tenanted properties raise a number of issues, e.g. where the tenancy is unexpired but the purchaser wants to move into the house on settlement.

 

Pre-Approved Finance

Sort out your finances before you start looking. A pre-approval certificate can often be obtained from your Lender. Advice from mortgage brokers can be valuable because of their independence. A broker can often get you a more favourable finance package. Having finance pre-approved means you know exactly what you can spend. Don't set yourself a budget that will mean you are unable to address emergencies. Interest rates go up and down. Be able to accommodate interest rate increases.

Use an open home checklist

Going to open homes can be overwhelming. After visiting a number of homes you won't remember important things about individual properties. Use a checklist such as Consumers Magazine House Inspection Checklist to record the details of each home you visit. This checklist will be an invaluable tool to help you remember the property and the state it was in at the time you inspected it.

Check chattels carefully

Always check chattels such as ovens, heaters and dishwashers to ensure they are in working order prior to signing an Agreement. Don't be afraid to flush the toilet, turn on the shower or taps to check water pressure. Ensure all the chattels you are expecting to purchase are listed on the Agreement. Some items that you may be expecting to purchase may not be fixtures. Err on the safe side and include everything that you are expecting to receive e.g. large potted plants, heated towel rails, heaters.

Ask questions

Ask the agent questions about the property. Why is it on the market? Depending on the age of the property, has it been rewired or repiled? Are there any issues with dampness or leaks? It is in your interests to ask as many questions as you can. In particular ask the agent "is there anything about this property that you are aware of that might impact on my decision to purchase?"

Visit the property more than once

Check the property out on different days and at different times of day. Go on a weekday to see what the traffic or noise is like. Go around in the afternoon to see how long the sun lasts for. Visit the property at night. Check the neighbours.

Contract preparation

It is customary for real estate agents to prepare the Agreement. There is a standard form which virtually everyone uses. Conditions, however, need to be drafted and included. The wording of conditions can be significant. Our HomeLegal team lawyers are happy to review and confirm appropriate wording over the phone. They all have cellphones (see the Our People page for their cellphone numbers). Feel free to ring them or have the agent ring them at any time.