Tag: Information Memorandum

Are You Purchasing A Property @ Auction? If So What You Need To Know!

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October 20, 2011

Are You Purchasing A Property @ Auction? If So What You Need To Know!

 

Many Property Transfer Purchasers are purchasing properties @ auction in New Zealand.

When you purchase a property @ auction you are basically entering into a cash transaction with the property owner.

Here are a few tips to help safe guard your property transfer investment prior to the time of auction:

1. Pre approval from your Lender if you are not a cash property purchaser.

2. 10% of the purchase price being paid as your deposit. This will be payable on the fall of the auctioneers hammer.

3. A search of the Certificate of Title, and make sure it is an up to date Title Search. You can get one from http://www.propertyconveyancingservices.com/43.html.

4. Copy of the Land Information Memorandum from the Local Council. This should be given to all potential property purchasers by the Agent who is marketing the property.

5. Any other Disclosure documents if purchasing a Unit Title, together with other Disclosure documents as required under the Real Estate Agents Act.

6. Getting the Auction Agreement checked by your Registered Conveyancing Practitioner prior to the Auction. This is so important.

7. Obtaining a quote of the total cost of Conveyancing Fees up front. So you can factor this into to your over all costs together with any rates to be adjusted at the property transfer conveyancing and settlement date.

http://www.propertyconveyancingservices.com/free-property-conveyancing-quote.html

8. List of questions you have regarding the property to be answered by the Agent.

The more due diligence you complete at the beginning of the process will ensure no hidden surprises at the end.

For more information on what you can do to safe guard your property purchase @ auction.

Ring Kim 0800 2 87878 option 1 :)

: Property Conveyancing News
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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 :)

: Property Conveyancing News
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Selling Or Purchasing Property – What is a Land Information Memorandum?

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August 26, 2011

Selling Or Purchasing Property – What is a Land Information Memorandum?

 

A Land Information Memorandum (LIM) Report is a report prepared by local Councils upon a request being made by a Property Seller or Property Purchaser. It provides information from the Council Records on matters which affect a property.

  • If buying a property,  a LIM Report may answer some important questions which need to be asked about the land or any buildings on the property.
  • A LIM Report will tell you what the Council knows about the property or any issues which may affect it. Knowledge of this information may be vital prior to a property sale being finalised.
  • When you are a property seller you have a responsibility to disclose important information about the property.
  • If you are a Professional assisting a property seller or property buyer, you have a responsibility to be aware of information in the memorandum when providing advice.

What information is included in the Property Transfer LIM Report?

 

  • Any special features of the land known to the Council including potential erosioon, falling debris, sinking, slipping, silting or build up of land, flooding or likely hazardous pollutants.
  • Private and public stormwater, water and sewerage drains.
  • Government valuatioon of the property and rates levied for the current year, including water rates where applicable and the amount of any rates owing.
  • Zoning of the property, a copy of the planning rules relating to that zone, advising how the land can be used and conditions of that use. Also designated land use which may affect the property.
  • Any information which has been submitted to Council by a statutory organisation or network utility operator (ie suppliers of gas and power) relating to the site.
  • Any certificates issued by a builder certifier.
  • Drinking water supply informaton.
  • Other information concerning the land which the Council considers relevant.

You can see that if you are a Property Seller or Property Purchaser obtaining a LIM Report hold valuable information about a property transfer. So if you would like us to request a LIM Report on your behalf contact us @ https://www.propertyconveyancingservices.com

: Property Conveyancing News
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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 :)

    : Property Conveyancing News
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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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