Purchasing and Selling a Property

23 Jun 2017
Author: Hayley Willers

There has been a lot happening in the property market in Raglan recently, and with the Rangatahi development across the causeway there is sure to be more to come. Owning your own home is an exciting step to make, but the process of getting there can be stressful and potentially risky if you are not well-informed and do not understand what is required of you. Similarly, selling your home requires an understanding of the steps you will need to avoid any possible legal complications.

The following is a simple guide of what you can do to avoid stress, minimise cost and prevent costly legal complications.

Your lawyer will play a large part in the process and will advise you throughout all stages. Their knowledge and experience in this area is abundant, and they know how to pre-empt problems, assist with the due diligence and help coordinate any finance required. Regardless of the type of property you are looking to buy or sell, your lawyer’s job is to protect you against risk and assist you in making informed decisions while minimising stress. Your lawyer needs to be one of the first professionals you contact to provide initial guidance on the process.

Purchasing a Property

When looking to purchase a property a prudent purchaser should:

  • Determine how much you can afford to borrow and set a price range. Talk to your mortgage broker or bank early to assist you with this decision.
  • Find a property but do not sign the Sale and Purchase Agreement before discussing the transaction with your lawyer.
  • Consider finance, building report, LIM and Methamphetamine report conditions.
  • Investigate insurance for the property.
  • Sign the Sale and Purchase Agreement. Once signed by both parties the agreement is legally binding.
  • Start your Kiwisaver and home start application (if applicable). Your Lawyer can assist with this.
  • Your lawyer will review the title, and any matters affecting the property will need to be explained to you.
  • In some cases, valuation and accounting advice may be required.
  • Your lawyer will assist with any conditions in the agreement.
  • Your lawyer will be required to advise you on the financing and will prepare any required bank security once the purchase is unconditional.
  • On the day of settlement your lawyer will do all things to enable the property to be legally transferred into your name.

Selling a Property

  • Discuss and finalise what you want from the sale, including the prices you are willing to accept, choice of agent and selling methods.
  • It is important that you identify any issues that must be legally disclosed to a potential purchaser. If you are unsure, discuss it with your lawyer.
  • In some cases, advice from your accountant may be required.
  • Your lawyer should review the agreement prior to signing to make sure it reflects your intentions and you are adequately protected, particularly with any warranties contained in the agreement.
  • Your lawyer will assist with any contract conditions and preparation of documentation for settlement.
  • On the settlement day your lawyer will receive the purchase funds from the purchaser, repay any outstanding loans to your bank, arrange the release of any mortgage and transfer the property to the purchaser.

The above are some of the basic steps to set you up for a successful purchase or sale of a residential property. Each property transaction is not the same and in many cases there are additional legal issues that must be considered. This is where good legal advice is essential.

DTI Lawyers are skilled in property matters and can assist you throughout the process.

This article was written by Hayley Willers, Associate and Property Law Specialist, DTI Lawyers. The article was first published in the Raglan Chronicle, 25 May 2017

Purchasing and Selling a Property
About the Author
Hayley Willers
Hayley Willers is a Managing Director at DTI Lawyers. She is a highly experienced property and commercial lawyer who deals with a wide range of commercial and private property matters including Property Development and Relationship Property. You can contact Hayley at hayley@dtilawyers.co.nz