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It is common practice in this Real Estate Market for Vendors to sell their properties by Auction. A sale by Auction is another method to reach an Agreement for Sale and Purchase. The Vendor appoints an Auctioneer to act as their Agent in carrying out the sale.

The Auctioneer will call for bids from prospective Purchasers. Acceptance of a Purchasers bid for the property falls on the Auctioneers hammer. It is important that as a Purchaser you understand that once your bid is accepted the Contract is made and it is not possible to introduce terms and conditions in relation to the property purchase.

The Purchaser is also required to pay the deposit on the fall of the Auctioneers hammer.

If you are considering purchasing a property at an Auction you must complete your due diligence in relation to the property purchase. Some Real Estate Agents have information brochures about the property which may include a copy of the property Title Search together with the encumbrances which are registered on the Title and or a Land Information Memorandum.

If this information is not made available by the Real Estate Agent then you should arrange for your Conveyancing Practitioner to undertake the relevant searches in relation to the property.

There can be dangers in purchasing a property at Auction as you do not have the opportunity of obtaining a Builders or Engineers Report which would otherwise disclose any defects, structural issues, water tightness problems or issues in relation to the land itself.

Also note purchasing at Auction is entering into a cash offer. Even though you as a Purchaser may have a pre-approval of Finance from a Lender or Bank it does constitute an unconditional Finance Approval. You still need to make formal application for Finance.

If you are unsure of the actual Auction procedure we would recommend you attend a few to see how things go or if you would like further information do not hesitate to email Kim directly @ kim@propertyconveyancingservices.com

: Property Conveyancing News

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How To Protect Your Deposit In A Property Conveyancing Transaction

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January 18, 2012

How To Protect Your Deposit In A Property Conveyancing Transaction

In a Property Conveyancing Transaction a deposit of either 5 or 10% of the purchase price is paid upon the Agreement for Sale and Purchase being confirmed unconditional to the Real Estate Agents Trust Account.

After the statutory 10 working days the deposit is released, the Real Estate Agent is paid their commission and the balance of the property deposit is paid to the Vendor’s Conveyancers Trust Account.

In this current property market it is imperative that prior to the release of any your deposit that the Conveyancing Practitioner acting for a Purchaser checks with the Vendors Conveyancer that there is sufficient funds from the sales proceeds to repay any mortgage which maybe registered on the Title.

We are seeing a regular occurrence where deposits have been released and there is not sufficient funds to repay the Lender. In these circumstances the Mortgagee being Discharged would need to approval the terms and conditions of the Sales and Purchase Agreement together with the price the property is being sold for as there will be a shortfall. They may also require the Vendor to obtain a current registered valuation on the property.

As a Property Purchaser you do not want to be in a position where you are having to take legal action to try and recover your deposit.

More for information on how to protect your Property Transfer deposit contact the New Zealand Property Conveyancing Experts on 0800 2 87878 option 1.

Cheers Kim