With the introduction of the new Real Estate Agent Authority it would be good advice to keep file notes on conversations between yourself and either the Vendor or Purchaser. By keeping simply file notes it can save the he said, she said, they said or you told me. Being proactive and not deactive is so important with the introduction of the new legislation affecting Real Estate Agents in New Zealand. It can also safe guard you from any claims against your Professional Indemnity Insurance. It is a practice in our office to keep file notes on all conversations. 
Tag: Purchaser
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
During the course of contractural negotiations a Vendor/Purchaser or Agent may make statements about the property being offered for sale. Misrepresentation could be made verbally, in marketing or advertising material, or in writing. Generally speaking a misrepresentation is a false statement relating to present or past fact. The Agent and Vendor must be very careful about claims they make about a property. This is going to be more important than ever under the new Real Estate Agents Act, as accountability is going to be high on the Agenda for the new Board.
Here are but a few examples:
1. A statement to a Purchaser that the government valuation of a property was $21,000 where infact is was $15,500
2. A Vendor who covered up defects in the foundations of a property by filling in and papering over cracks was misrepresenting the state of the property.
Common sense must prevail, and a Purchaser should also make all due enquiries prior to entering into any Agreement for Sale and Purchase.
Cheers Kim
Lets break it down in bit by bit:
Recently the Real Estate Institute of New Zealand released a plain English version of a new Agreement for Sale and Purchase. This Agreement has not been received well by the Real Estate Industry. It would appear the majority of Agents will stick with the Auckland District Law Society Eighth edition (2006) (2).
The transaction begins with the negotiations between the Vendor and Purchaser, when both parties are satsified the Agreement for Sale and Purchase is completed with the terms and conditions which require satisfaction prior to the Agreement being confirmed unconditional. The Agreement for Sale and Purchase represents the contractual obligations of the parties.
Front Page:
The date of the Agreement should always be the date at which the last party signed.
Vendor; The Vendor’s names as shown on the Certificate of Title.
Purchaser; The names of all person who at the end of the transaction will be registered on the Title. To take it further the names should be as described on Driver’s License or Passports.
Address; The address for which the transaction is in relation too.
Estate and legal description; This should be exactly as described as per the Certificate of Title. Delete the estates which are not applicable.
Purchase price; The price will be inclusive of GST (if any) unless the appropriate deletion is made.
Deposit; The amount of the deposit is often 10%, note the parties can agree to a different amount or even no deposit at all.
Payment of purchase price; There are two options, one which must be deleted. Cleared funds is the first option, this simply means cash, bank cheque or electronic transfer. The settlement date needs to be inserted and the second option deleted. The second option would be used in payment was to be made by instalments or if vendors finance was involved.
Possession date; This is the date the Purchaser will take possession. This is generally the same as the settlement date.
Stay posted for further information around the Agreement for Sale and Purchase. Regards Kim
: Auckland District Law Society, Bank Cheque, Bit By Bit, Certificate Of Title, Contractual Obligations, Eighth Edition, Electronic Transfer, First Option, Front Page, Gst, Instalments, Legal Description, Negotiations, Passports, Possession, Purchaser, Real Estate Institute Of New Zealand, Satisfaction, Settlement Date, Vendors Finance
As a Purchaser is it very important to complete a search of the Property file held by the Council. Each file may contain different information. Here are a few of the common items found on the property file.
1. Building Permits/Consents and associated Plans.
2. Project Information Memorandums.
3. Code of Compliance Certificates.
4. Subdivision Consents.
5. Resource Consents.
6. Drainage Plans.
7. Building Warrants of Fitness.
8. Hazard, Caution and Information Notices.
9. Planning Restrictions.
10 Planning Certificates of Compliance.
If you need any assistance to obtain a copy of the Property File do not hesitate to contact us and we will help you. Warm Regards Kim
