Tag: Due Diligence

Property Transfer – Conveyancing Services Leaky Homes New Zealand

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October 30, 2011

Property Transfer – Conveyancing Services Leaky Homes New Zealand

 

There are literally thousands of home owners across New Zealand who are affected with Leaky Homes.

Sadly many have suffered huge financial losses from the sale of their properties, and incurred huge legal fees in trying to get Local Councils and Builders to rectify the issues with their properties.

 Basically the homes that were built during the periods between 1990 and early 2000 were built using materials, designs and structures which do not handle the wet conditions in New Zealand.

 If you are Property Purchaser you need to protect your property transfer by completing your due diligence in checking whether the property is a Leaky Home.

 You must ensure the Agreement for Sale and Purchase has a condition worded correctly such as:

 “This Agreement is conditional upon the Purchaser obtaining a report on the general condition of the buildings on the property including but not limited to weather and water tightness and structural integrity. The Report must be obtained from a qualified Building or Professional appointed by the Purchaser. Should the report disclose any weather, water tightness or structural issues the Purchaser can cancel this Agreement by giving notice in writing to the Vendor”

 You should always get your Agreement for Sale and Purchase checked by your Conveyancing Practitioner or Conveyancing Lawyer prior to you signing so we can check all the conditions in the Sales and Purchase Agreement.

 Unfortunately many Property Purchasers do not get the Agreement checked and then it is very difficult for us to vary any terms and conditions agreed between the Vendor and Purchaser.

 For more information please contact us directly.

 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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Conditional Agreements

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April 14, 2010

Property is being purchased and sold on a daily basis. Unfortunately many people do not understand the legal terminology used when a Contract is being drawn up on their behalf. In this article we are going to explain in plain English the legal terminology of what a Conditional Agreement is.

Conditional

When you enter into an Agreement for Sale and Purchase is will be made subject to certain conditions which need to be satisfied by either the Vendor or the Purchaser.

Examples of these conditions are

1.Subject to the Purchaser obtaining Finance on terms and conditions acceptable to the Purchaser. This may also include the amount of funds and the name of the Lender.
2.The sale of another property.
3.A Valuation Report.
4.A Builders Report.
5.Land Information Memorandum or
6.The Vendor obtaining a Code of Compliance for an illegal structure.

These are but to name a few.

The emphasis is that both parties will have a legal obligation to take all necessary steps to ensure their conditions can be met and confirmed making the Contract conditional upon the terms specified.

If for any reason either party were not in a position to satisfy any of the conditions there is generally a provision allowing either party to cancel the Agreement or negotiate on further terms.

Ensure you read the fine print in the Agreement as these also form part of your obligations. It is highly recommended you consult with a Conveyancing Practitioner prior to signing any Agreement to ensure your interests are protected. This is part of your own due diligence.

It always pays to be safe rather than sorry later.

Again we would love your feed back and let us know if the information we are providing is of value or if there is a topic you wish us to cover. :)

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Buying a Business

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November 12, 2009

The last blog on this matter:

If there are licences to operate, or possibly a government consent involved the Agreement should provide provision for the licence to be current and transferred upon settlement so you as the Purchaser can continue to trade.

You should also ensure the Agreement provides provision for the Vendor to remain for a period after settlement to ensure  smooth transition, and gain some practical tips and experience from the Vendor.

Seek the advice of your Accountant around any matters regarding GST. In particular if you as the Purchaser are registered for GST this will make the transaction zero rated for this purpose.

Seek advice as to whether the business should be purchased in your dividual names or the name of a Company.

Furthermore I can not stress the importance of you completing your full due diligence before entering into any Agreement to purchase a business or franchise.

Warm regards Kim

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