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Tag: Purchase Agreement

Conditions in Your Sales and Purchase Agreement

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

: Auto, Cheers, Conditions, Draft, Finance, Information Memorandum, land, Land Information, property, Purchase Agreement, valuations, wording

Final Inspection tips

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December 2, 2010

When purchasing property in NZ is it very important to have the Sales and Purchase Agreement checked by your Conveyancing Practitioner prior to you signing. There are several very important reasons why and one in particular is in relation to the wording on the chattels, the state of the property internally and externally.

As an example:

1. You should have a condition which states: The Vendor warrants that all electrical, gas and plumbing fixtures and fittings together with chattels (including swimming pool/spa equipment and/or reticulation if included with the sale) will be in good working order at settlement. At settlement date should any repairs be required to rectify any matter in this condition then the Vendor will be responsible for such repairs at their expense. If the repairs can not be completed prior to settlement the Vendor authorises funds to be retained in their Conveyancers trust account to remedy same.

2. Do you require the carpets to be cleaned prior to settlement? If so, this needs to be inserted as a condition in the Contract.

3. Do you want the property left clean inclusive of all rubbish being removed? Lawns mowed and garden beds weeded? The internal of the property being professionally cleaned? If so, this needs to be inserted as a condition in the Contract.

If what you want is not clearly outlined as a condition in the Sales and Purchase Agreement we are not in a position to request it to be completed prior to or after settlement.

Our tips:

1. Take a hair dryer with you when you complete your final inspection and check all the power points are working.

2. Turn on the waste disposal unit, gas elements, oven, extractors, light switches, hot water taps, heat pumps and anything else to make sure they are workings.

The best advice is to speak to your Conveyancer prior to signing the Agreement and have it checked to ensure your interests are protected.

We would love to have your feed back and comments.

Early Release of Deposit

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November 14, 2010

We are all aware of the requirement under the Terms of the Sales and Purchase Agreement is for the deposit to held in the Trust Account of the Real Estate Agent for a statutory 10 working days before it can be released. Given the current market in New Zealand both a Solicitor or Conveyancing Practitioner acting for a Purchaser first must obtain consent from the Purchaser for early release of the deposit, and secondly ensure they obtain the appropriate undertaking from the Vendor’s Solictor or Conveyancing Practitioner that the Vendor has sufficient funds to repay any debt to a mortgagee, outstanding rates or any other debt payable at settlement. Being proactive is the key. We look forward to any posts or comments you have.

: Uncategorized

: Current Market, New Zealand, Proactive, Purchase Agreement, Purchaser, Real Estate Agent, Solicitor, Solictor, Trust Account, Undertaking

Final Inspection Tip

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September 6, 2010

Your Sales and Purchase Agreement should have a good working order condition:

This Agreement is subject to all gas, electrical and plumbing fixtures and fittings being in good working order at settlement. If none of the fixtures and fittings are not in good working order the Vendor agrees to remedy in a tradesman like manner at the Vendors expense.

Have you ever thought of taking a hair dryer on you final inspection to check the powerpoints are working?

Please leave your comments and feedback. We look forward to hearing from you.

Have a great day

: Uncategorized

: Hair Dryer, Plumbing Fixtures, Powerpoints, Purchase Agreement, Tradesman

Buying a Property

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April 21, 2010

Most people find the process of purchasing a property a daunting and scary experience, but rest assured it can be one of the most fantastic experiences. The first step to undertaking a property purchase is research and understanding what it is you need to be looking for. This blog is designed to give you some useful tools to help you.

Step 1. Understanding the market and area in which you want to purchase a property. There is lots of information available on line today.

Some of the resources you could use would be the local property press, quotable value, real estate agents property advertisers, estate agents or statistics from the Real Estate Institute of NZ to name a few.

Step 2. Speak with a professional Mortgage Broker to assess your ability to borrow funds and how much deposit you will be required to pay once the Agreement is confirmed unconditional. They will also look at the best loan structure to suit your needs.

This will also help you guage the price market in which you can buy.

Step 3. Check with the local council as to what the annual rates are. Is there any water charges applicable? How much will the insurance cost? What are your Conveyancing and Settlement fees? These costs will also need to be factored into your budget.

Step 4. Make a wish list of what it is you are looking for in the house in your market price.

Some things to consider :

- Schools.
- Public transport.
- Library.
- Shopping Centres.
- Sports and Recreation facilities.
- Banks.
- Post offices.
- These are but to name a few.

Step 5. Take your time and visit open homes to see what you get for your investment. Never buy on emotion. I have personally been guilty of this and it can be costly.

Step 6. Prior to entering into any Sale and Purchase Agreement make a trip to the local Council and check the property file. You will find a lot of information about the property you are intending to purchase.

Step 7. Once you have found your dream home contact your Conveyancing Practitioner to get the appropriate advice about what conditions should be included in your Sale and Purchase Agreement. They can also conduct a Title Search to see what encumbrances are registered as there could be some which affect the use of the land.

Above all enjoy the experience. When you engage the right Professionals the process will be hassle free.

If there is any further information you need please contact us, or is there anything in particular you would like to know?

Please leave your comments and feed back below we would love to hear from you Kim

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