Tag: Purchaser

Banks

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December 10, 2010

It is me or is everyone getting frustrated with Banks?  We need clarification when dealing with Conveyancing Practitioners.

The Conveyancing Industry in New Zealand has been in effect for 2 years. In Australia the Conveyancing Industry has existed for over 30 years.

In New Zealand the Solicitors also represent the Banks in either a sale or purchase settlement and the Bank pays no representation fee. The fee is incorporated in the fee charged by the Solicitor to the Vendor or Purchaser. Conflict of interest in my opinion.

Anyway the Banks who will allow Conveyancing Practitioners to act are Bank of New Zealand, New Zealand Home Loans, TSB Bank and Kiwibank. It is long overdue the other Banks – ASB, Westpac, and ANZ National Bank of NZ get with the program.

Furthermore it is the choice of the Vendor or Purchaser to use a Conveyancing Practitioner not the Bank to advise who must represent them.

Any opinions, comments or feedback greatly appreciated. :)

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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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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. :)

: Property Conveyancing News, Uncategorized
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Caveats and Registration

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March 29, 2010

The Land Transfer Act 1952 in New Zealand provides for 5 types of Caveats.
A caveat is a warning to anyone to be aware. A Caveat is a notice which is registered against a title for any party to be aware that a claim is being made and sought. Caveats do not create new rights, they are used to protect existing ones. The person lodging a caveat must have reasonable grounds to register a caveat. If they don’t then they may be liable to compensate anyone who suffers a loss as a result of the registration.

The different types of Caveats are:
1. A caveat against bringing land under the Act.
2. A caveat against dealing with land.
3. A caveat against an application for prescriptive title.
4. A caveat as notice of interest in respect of compulsory registration of title.
5. A caveat to forbid issue of an ordinary certificate of title to replace a certificate limited by parcels.

Other types of Caveats can be registered by other statutes. As an example Section 42 Property Relationship Act 1976, where a spouse is claiming an interest in the other spouse’s property.

Or

Section 6 of the Joint Family Homes Act 1964 which allows a creditor to possibily lodge a caveat claiming an interest in the land due to debt.

The most common caveat we come across is the caveat against dealings. Generally a caveat is used by a person who wishes to protect an interest in land by preventing the registered proprietor from disposing of the land or dealing with it in a way that would affect the caveators rights and interests.

Caveats can be registered to protect a Purchaser under a long term Agreement for Sale and Purchase, or the Caveator is a lessess under an Agreement to Lease, or the Caveator is a mortgage under an agreement or unregistered mortgage, or the Caveator holds an option to purchase, or if the Caveator is a beneficiary under a Trust.

We would love to hear your comments and feedback :)

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