Tag: Finance

Property Conveyancing – Buying A Property At Auction

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January 23, 2012

Property Conveyancing – Buying A Property At Auction

 

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

 

 

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Does a Pre-Approval of Finance constitute an Unconditional Finance Approval?

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September 16, 2011

“Does a Pre-Approval of Finance constitute an Unconditional Finance Approval?”

It is not uncommon for Property Purchasers to obtain a  Pre-Approval of Finance from a Mortgage Broker or Bank prior to embarking on the search for their property purchase. But does a Pre-Approval of Finance actually qualify as what in the Conveyancing Industry is considered Unconditional Finance Approval? No definitely not.

I have a file at present that I am working on where my Property Purchasers are actually First Home Buyers and found the property of their dream. Upon receiving the Sales and Purchase Agreement from the Real Estate Agent I discovered that there was no Finance condition in the Contract fatally entering my clients into a cash offer – danger, danger, danger.

My Property Purchasers did advise the Real Estate Agent they had a Pre-Approval of Finance which only means they may qualify for Finance Approval upon completing an Application to the Bank or Lender. If they meet the criteria set by the Bank or Lender they may get Finance to complete their property transfer.

The Agent should have included a Condition in the Sales and Purchase Agreement along the lines of:

This Agreement for Sale and Purchase is conditional upon the Purchasers obtaining Finance on terms and conditions satisfactory to them to complete the purchase.

In the event they were not successful in obtaining Finance the Agreement would be cancelled and any deposit if paid would be refunded without penalty.

In order to protect my clients I requested the additional Finance condition be inserted into the Agreement.

The moral of the story is to always where possible have your Agreement for Sale and Purchase checked by your Conveyancing Practitioner so we can ensure your Property Transfer is protected. It’s what we are qualified to do.

For more information you can always reach Kim on kim@propertyconveyancingservices.com. It does not matter where you are located in New Zealand with our Online Conveyancing Services we have your property investment covered.

Feel free to visit our website for further tips on how to protect your Property Transfers and Sales.

http://www.propertyconveyancingservices.com

Cheers Kim :)

 

 

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First Home Buyers Guide To Your Property Purchase

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April 26, 2011

Preparation Work Is Never Fun But Can Save You Time, Stress and Money

There are a few things you can do as a First Home Buyer to save you time, stress and money when purchasing your first property. We have outlined our 6 step process as a guide to help you:

1.  Speak to a Finance Broker or Banker to establish what property price bracket you can purchase in, the deposit required to be paid upon the Agreement for Sale and Purchase becoming unconditional together with the repayments of the mortgage you can afford. But remember when the Real Estate Agent prepares your Agreement for Sale and Purchase you make it subject to you getting Finance on terms and conditions satisfactory to you. This is important as a Pre-Approval of Finance does not constitute an unconditional Finance Approval.

2.  Now is the time to start shopping for your Dream Home. Stick to your price range, Think of the type of home you are looking for, the location and amenities required by you and your family.

3.  Once you have found your Dream Home, ensure that the Agreement prepared by the Real Estate Agent is checked by your Conveyancing Practitioner to ensure the conditions protect your interest prior to you signing.

4.  Your Conveyancing Practitioner will hold your hand throughout the process from conditional, unconditional, settlement and possession and after settlement.

5.  Once settlement has been completed have a moving checklist made to cover contents and insurance, redirectional on mail, transfer of phone, power and gas, together with other contacts.

6.  Following settlement your Conveyancing Practitioner will provide you with a copy of the Title together with the Mortgage Instrument showing the property registered in your name, final settlement statement and tax invoice, plus Notice of Sale to the relevant Council with rates paid.

For our detailed guide please visit http://www.propertyconveyancingservices.com/home-buyers-guide.html or contact Kim or Wendy on 0800 2 87878 Cheers Kim :)

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Conditions in Your Sales and Purchase Agreement

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March 29, 2011

When you are Selling or Purchasing a Property is it important that the Conditions in your Sales and Purchase Agreement are worded correctly.

If the Conditions are not worded correctly huge problems can arise. In particular the Conditions should contain the following elements:

  • What needs to be done?

  • Who’s going to do it?

  • Who is going to pay for it?

  • When does it need to be done?

  • What is going to happen if something is discovered?

  • Who is going to pay to fix it?

    • Stay posted for more specific wording relating to the Finance, Land Information Memorandum, Approval of Title, Builders Reports, Valuations, Good Working Order and Warranties together with the Sale of another Property.

    Cheers Kim :)

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    How To Make Your Conveyancing Transaction Proceed Smoothly

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    February 22, 2011

    What you can do to assist your settlement to proceed with the maximum efficiency?

    Communication

    Please provide your Conveyancing Practitioner with any information or pertinent facts which you believe may be relevant to your property settlement. Early advice is excellent to avoid any delays in settlement.

    General

    * It is important you attend to signing any documents as requested by your Conveyancer as soon as possible and return them quickly. This is particularly important if the time frame for settlement is short or if you are going away. Please ensure that you return your Appointment to Act together with photo identification immediately.

    * Attend to any conditions noted on the Sales and Purchase Agreement which need to be satisfied, if the responsibility is yours.

    * Ensure payment of any funds ie deposit or balance of settlement proceeds is made by the date set out in the Agreement.

    * Don’t forget to take into account additional expenses such as insurance, moving costs, rates and connection of power, gas and phone.

    Finance

    * If your Agreement for Sale and Purchase is subject to you obtaining Finance Approval by a specified date, please ensure you take immediate steps to obtain the Loan.

    * If you are utilizing the services of a Finance Broker/Lending Institution, please provide the name and contact details to your Conveyancer.

    * Your Conveyancer will be in contact with your Finance Broker/ Lender and will receive the Loan Agreements once your Agreement for Sale and Purchase is unconditional. Once received your Conveyancer will make an appointment for you to sign documentation. It is wise to allow at least 30 minutes to go through the documents so they can be explained in full.

    * The Lenders fees may or may not be included in your Statement you receive from your Conveyancer. They maybe deducted from the Loan advance therefore increasing your contribution. Your Conveyancer will confirm this for you.

    * If your Bank requires a Guarantor you may need to obtain independent legal advice, but the option is yours.

    * Your Conveyancer will prepare the Transfer, preliminary settlement statement and attend to the adjustment of council rates and water rates if applicable. If you receive any rates notice following settlement check with your Conveyancer before payment as this may have happened during the settlement.

    Building Licenses

    * It is recommended you visit the Local Council and check that all Buildings and Renovations have been issued with a Permit or Code Compliance Certificate. If you require assistance contact your Conveyancer.

    Final Inspection of the Property

    Under the terms of the Agreement for Sale and Purchase you are entitled to complete a Final Inspection of the property on one occasion prior to settlement. You will need to contact the Real Estate Agent to arrange this at least one day prior to settlement to ensure the property is in the same condition as the day you signed the Agreement. Advise your Conveyancer if there are any problems.

    Keys

    Your Conveyancer will notify you once settlement has taken place, at which time you should contact the Real Estate Agent or Conveyancer to arrange collection of keys and security devices. This can only take place once the Vendor’s Conveyancer has authorised release of keys. If you have purchased a property which has been tenanted, our recommendation is to change the locks.

    After Settlement

    You should be provided with a copy of the Title once documents have been registered showing the property has been transferred into your name. The Local Council will be notified of the change of ownership.

    Things you should do

    * Make arrangement for connection of electricity, gas and telephone services. Also a redirectional on your mail is a good idea.

    * You may wish to obtain quotes and book a removalist prior to settlement date. But do remember settlement can take place anywhere between 9-4.30 on the day.

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