Tag: Cross Lease

Property Conveyancing Terminology continued

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September 28, 2011

Property Conveyancing Terminology continued

 

Mortgage:  When you obtain your Finance from your Lender and have signed the Loan Agreements, the Bank will require you to provide security which is in the form of  a mortgage to be registered against the Title to protect their interest. Furthermore when you sell the property the Bank will require the loan to be repaid, and in return they will provide your Conveyancing Pracititioner with a Discharge of Mortgage.

Possession: This should be stipulated in the property transfer Agreement for Sale and Purchase. This is date upon which the Purchaser (Buyer) would take possession of the property being transferred from the Vendor (Seller).

Principal: This is the amount of funds you have borrowed from your Bank or Lender. i.e. $150,000 in addition to this would be the interest calculated on a daily basis on the principal amount you have borrowed.

Settlement: This should also be stated in the Agreement for Sale and Purchase. It is the date upon which the Purchaser pays the balance of funds to the Vendor to complete the property transfer. It generally is the same as the possession date. But not always!

Term of Loan: This is the period upon which the Purchasers loan is for. i.e. Amount borrowed $150,000 over a period of 25 years.

Title: The Certificate of Title is the register which is held at Land Information New Zealand. The Title to the property will hold the legal description to the land, together with any encumbrances which affect the use of the land. In New Zealand the types of Titles are Fee Simple, Cross Lease, Maori Land, Unit Title and Stratum Title together with Leasehold.

Valuation: Local Councils in New Zealand use Government Valuations to determine the rates to be set for the rating year. If you wanted an Valuation Report condition to be included in your Sales and Purchase Agreement you would need to instruct a Registered Valuer to provide you with the Report to determine the market value of the property.

Vendor: This is the person who is registered owner of the property on the Certificate of Title and who has the legal right to sell or dispose of the property.

I hope I have provided you with some basic Property Conveyancing Terminology to help you understand the common language used. If you require any further help please visit me @ https:www.propertyconveyancingservices.com

Cheers Kim :)

 

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Property Conveyancing Terminology

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September 25, 2011

Property Conveyancing Terminology

 

In todays blog I thought I’d outline some of the common Property Conveyancing Terminology used by our Profession so you maybe better informed when talking with your Property Conveyancing Practitioner:

  • Agreement or Contract: In New Zealand the Contract is prepared by the Real Estate Agent, Conveyancing Practitioner or Solicitor in a Private Treaty. This is document prepared when the Purchaser (Buyer) is ready to present an offer detailing the terms and conditions to the Vendor (Seller) on a property transfer. The document used in New Zealand is the Agreement for Sale and Purchase.
  • Chattels: These are the moveable objects to be left at the house and property when settlement has been completed. Generally being Carpets, Curtains, Drapes, Blinds, Light fittings, Dishwasher, Stove, Oven or what ever else has been agreed between the parties. It is very important to have every thing listed in the Agreement, so there is no confusion at settlement.
  • Conditional Agreement: This is the Agreement prepared between the parties but is subject to either the Vendor or the Purchaser completing and satisfying certain conditions within a specified time frame. Such as Finance Approval, Builders Report, Valuations, Approval of Title or a Land Information Memorandum, or whatever has been agreed.
  • Cross Lease Title: This type of Title is quite common in New Zealand, even though they can be a nightmare to deal with. This is when there is more than one dwelling (or Flat) on a Title. The owners of each property co-own the land, and each leases their own property which forms the Cross Lease Title.
  • Deposit: A percentage of the purchase price to be paid by the Purchaser will need to be paid as a deposit, this is generally either 5 or 10%, or what has been negotiated. This can be due and payable upon signing of the Agreement or upon the Agreement being confirmed unconditional. It is always in your best interest to have this paid upon unconditional.

It is always in your best interest to have your Conveyancing Practitioner check your Agreement prior to you signing.

Stay posted for an update on the terms used by the Conveyancing Profession and if you would like some more advice or help then please visit https://www.propertyconveyancingservices.com

Cheers Kim :)

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Protecting Your Property Transfer Investment

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September 7, 2011

Protecting Your Property Transfer Investment

 

Have you considered the necessary steps and due diligence you can undertake to protect your Property Transfer Investment, whether it is your First Home Purchase, Second Property Purchase, or if you are a regular Property Investor?

We are going to outline over a series of our blogs. – We want to make sure you have everything covered when investing hundreds of thousand of dollars in your Property Investment!

Today we are going to cover Step 1.

STEP 1

Once you have found the property that fits your needs and requirements, the Real Estate Agent will prepare the Sale and Purchase Agreement with your specified conditions and arrange negotiation with the Vendor directly.

 This will not be the case if you are purchasing Privately.

 The Contract may go backwards and forwards between the parties until agreement is met on the terms and conditions together with the agreed price.

 You should have your Agreement checked thoroughly prior to signing to make sure the conditions have been worded correctly and protect your interests.

 More importantly the conditions should cover the 6 “W” s.

v   What needs to be done?

v    Who’s going to do it?

v    Who is going to pay for it?

v    When does it need to be done by?

v    What is going to happen if something is discovered?

v    Who is going to pay to fix it and by when?

 OUR RECOMMENDED CONDITIONS

  1. Conditional upon you obtaining and being satisfied with a Registered Valuation Report.
  2. Conditional upon you obtaining and being satisfied with a Builders Report.
  3. Conditional upon you inspecting and being satisfied with the property file held at the local  Council.
  4. Conditional upon your Conveyancing Practitioners approval of the Title and encumbrances. This is especially important when purchasing a property that is a Cross Lease Title. We need to make sure the Flat Plans shows the correct dimensions of the dwelling and also that there have been no alterations that would change the dimensions.
  5.  You can even order a Title Search from us directly online.               http://www.propertyconveyancingservices.com/online-title-      search-request-form.html
  6. Conditional upon you obtaining and being satisfied with a Land Information Memorandum.
  7. Conditional upon the sale of the property (address) for an amount and on terms and conditions satisfactory to you.
  8. Conditional upon you obtaining Finance Approval sufficient to complete the purchase and on  terms and conditions satisfactory you.
  9. The Vendor will at his cost arrange for a  commercial cleaner to clean the interior of the house  and have the carpets commercially cleaned prior to settlement date.
  10. A warranty from the Vendor that the dwelling and property including the lawns, gardens and  surrounds will be left neat and tidy at settlement.
  11. Details from the Managing Agent of the Tenant so we can make provision for adjustment of  any rent on settlement and transfer of bond.

Time frames will need to be specified – it may be best to have all conditions due on the same date. But sometimes it may not work out that way.

 There are many other conditions available and if you need more information email kim@propertyconveyancingservices.com.

 ENSURE ANY DEPOSIT THAT IS TO BE PAID IS UPON THE AGREEMENT BECOMING UNCONDITIONAL.

 Stay posted for Step 2

Cheers Kim :)

 

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THE IMPORTANCE OF OBTAINING A TITLE SEARCH PRIOR TO COMPLETING YOUR PROPERTY TRANSFER

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September 1, 2011

THE IMPORTANCE OF OBTAINING A TITLE SEARCH PRIOR TO COMPLETING YOUR PROPERTY TRANSFER

Would you ask is it important to complete a Title Search on a property transfer and purchase prior to entering into an Agreement to purchase? I definitely hope you would and the answer is YES!

 

So why is it so important?

 

  1. It identifies the legal registered owner of the property and who has the right to sell.
  2. It identifies the correct legal description of the property to be noted on the Agreement or Contract.
  3. It identifies the area/size of the land.
  4. A search of the Title Plan will identify the boundaries of the property.
  5. It identifies the encumbrances to be discharged from the Title.
  6. It identifies the encumbrances and interests which will remain on the Title.
  7. It identifies what type of title i.e. fee simple, leasehold, cross lease, Maori land or strata title. Each of these titles has different estates.
  8. It ensures the correct property is being transferred. You need to always identify the Title and Plan to the property.
  9. It identifies any building restrictions or resumptions.
  10. It identifies the use of the land.

 

In essence make sure you order all necessary searches and read them carefully. If you don’t understand the searches check with your Registered Conveyancing Practitioner.

 

We have search requests available online Title Search. The importance of a little homework and due diligence can go a long way to protect one of the most important investments you will be undertaking in your property transfer and purchase.

 

Best wishes Kim :)

 

 

 

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Real Solutions for Real Estate Professionals

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July 28, 2010

Property Conveyancing Servicesn

Contract Writing

Welcome to our latest newsletter, firstly the shortest day is behind us and spring is not to far away. All White did us proud and the All Blacks are back in form. Let’s see how they go against the Aussie.

 

Contract writing and conditions; The conditions in an Agreement for Sale and Purchase when written correctly create an obligation for the parties to use all reasonable endeavours to fulfil the condition.

 

Lets look at the Finance condition – this condition should be written to note who the Lender is, how much is required and the date for satisfaction. Example we are acting for the Vendor and receive notification the Agreement is cancelled as the Purchaser has not been able to obtain Finance. In this situation we would require evidence in writing confirming the Finance could not be obtained prior to acceptance of cancellation. Again we would require such evidence if we were acting for the Purchaser.

 

When writing a condition keep the following in mind -

 

1. What needs to be done?

2. Who is going to do it?

3. Who is going to pay for it?

4. When does it need to be done by?

5. What is going to happen if something is discovered?

6. Who is going to pay to fix it?

 

For any help please remember we are just a phone call away :)
 

 

Title Searches
How much are you paying to get your Title Searches completed? We can undertake your searches for $7 per document. If you would like us to complete your searches please email kim@propertyconveyancingservices.com

 

Cross Lease Titles and Improvements

It is a well known fact that Cross Lease Titles provide quite a number of headaches in particular this is when the owner has made improvements to the existing dwelling which are enclosed and have not been noted on the Flats Plan. So how can we overcome this:

 

1. Search the Certificate of Title, Flats Plan and Lease at the time of listing.

2. Check with the Vendor in advance and ask the right question? Have you made any improvements to the property which are not noted on the Flats Plan. Also do the improvements have the necessary Council Approval.

3. If the answer is yes then you can discuss further with your client and us as to what are the best options to resolve the problem.

 

If you find out later you then have the problem of disclosure.

 

If you have any topic which you would like us to cover please email kim@propertyconveyancingservices.com

 

Real Solutions for Real Estate People

 

Best wishes the team at Property Conveyancing Services
 

 

PO Box 12084 Rotorua/PO Box 3220 Greerton Tauranga

0800 2 87878

www.propertyconveyancingservices.com
 
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