Tag: Real Estate Agent

Property Conveyancing – Buying A Property At Auction

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

: Property Conveyancing News

: Auction, Auto, Buying, Draft, Finance, information, Property Purchase, prospective Purchasers, Purchasers, Real Estate Agent, Real Estate Market

How To Protect Your Deposit In A Property Conveyancing Transaction

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January 18, 2012

How To Protect Your Deposit In A Property Conveyancing Transaction

In a Property Conveyancing Transaction a deposit of either 5 or 10% of the purchase price is paid upon the Agreement for Sale and Purchase being confirmed unconditional to the Real Estate Agents Trust Account.

After the statutory 10 working days the deposit is released, the Real Estate Agent is paid their commission and the balance of the property deposit is paid to the Vendor’s Conveyancers Trust Account.

In this current property market it is imperative that prior to the release of any your deposit that the Conveyancing Practitioner acting for a Purchaser checks with the Vendors Conveyancer that there is sufficient funds from the sales proceeds to repay any mortgage which maybe registered on the Title.

We are seeing a regular occurrence where deposits have been released and there is not sufficient funds to repay the Lender. In these circumstances the Mortgagee being Discharged would need to approval the terms and conditions of the Sales and Purchase Agreement together with the price the property is being sold for as there will be a shortfall. They may also require the Vendor to obtain a current registered valuation on the property.

As a Property Purchaser you do not want to be in a position where you are having to take legal action to try and recover your deposit.

More for information on how to protect your Property Transfer deposit contact the New Zealand Property Conveyancing Experts on 0800 2 87878 option 1.

Cheers Kim

https://www.propertyconveyancingservices.com

: Property Conveyancing News

: Account, Conveyancers Trust Account, property, Property Conveyancing, property deposit, Protect, Purchase, Real Estate Agent, Real Estate Agents Trust Account, transaction

“Protecting Your Property Transfer Investment Part 2″

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September 9, 2011

“Protecting Your Property Transfer Investment Part 2″

Following on from our previous blog here are further steps involved in the process to ensure your Conveyancing Property Transfer is protected and secure:

STEP 2

Once we are in receipt of your Sales and Purchase Agreement from the Real Estate Agent or you directly we will communicate with you regarding the conditions and the obligation to satisfy them by either party by the due date.

Communication is the key . We will take the stress out of the process for you!!!!!!!!

Step 3

Congratulations. Once all conditions have been satisfied to your requirement we will seek your instructions to confirm the Agreement unconditional and communicate this to all interested parties.

It is at this point that the deposit will need to be paid. Generally it will be either 5 or 10% of the purchase price, or what you have available.

Payment is made directly to the Real Estate Agent who will hold this in their trust account for the Statutory 10 working days.

It is not uncommon for the Real Estate Agent to request early release of the deposit as they are paid upon the Agreement becoming unconditional. Instructions will need to be obtained from you directly prior to this being confirmed.

If the deposit amount is incorporated in the Finance you will need to make arrangements with your Lender to see if a temporary overdraft is available.

Step 4

The process now begins with preparation for the settlement process. We will communicate with all other parties involved in the transaction.

This will include the Real Estate Agent, Broker, together with the other parties Conveyancing Practitioners or Solicitor.

Vendor

Request the Discharge Instructions from your Lender.
Request the Rates Information from the Council.
Provide a Settlement Statement to the Purchasers Representative.
Forward you the Authority and Instruction form (Electronically) to sign and return with your Photo Identification.
Certify and sign the edealing on your behalf.
Provide the necessary undertakings to the Purchasers Representative.
Receive the Settlement Funds from the Purchasers Representative.
Repay the Lender, Balance of Commission to Real Estate Agent if applicable together with any outstanding rates and final rates. reading.
Deposit the balance directly into your Bank Account.
Forward the Sales Notice to the Council providing details of the new owner.
Authorise release of the keys to the Real Estate Agent.
Provide you with final correspondence including receipt of funds deposited, settlement statement and tax invoice.

To Your Property Success and Security Kim

: Property Conveyancing News

: Agent, Auto, deposit, discharge instructions, Draft, Overdraft, Protecting, Purchasers, Real Estate Agent, settlement, settlement statement, Trust Account

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

Urgent Notice of Scam to all Real Estate Agents

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September 11, 2010

Hi everyone the Real Estate and Business Advisory Board in Western Australia has been notified of a scam whereby a resident in South Africa who owns property in WA has had two properties sold without his knowledge.

The Real Estate Agent who conducted the sales received an email supposedly from the Vendor claiming he was desperate to sell the properties on account of financial hardship. The Agency claims they had previously dealt with the Vendor using the same email account. It is now believed that the email originated from Nigeria.

The Agency acted upon this and contacted the purported Vendor on the telephone number provided in the email, where it was found that the person was well-informed of the details of the first property to be put on the market. The Agent listed the properties, with one being sold in June 2010 and the second currently being prepared for settlement.

The case is currently under investigation. If it can happen in Australia it certainly can happen in NZ. How could it have been prevented?

Stay posted for the update. Please leave your comments and feedback cheers Kim

: Uncategorized

: Business Advisory Board, Cheers, Email Account, Financial Hardship, Knowledge, Nigeria, Real Estate Agent, Real Estate Agents, South Africa, Telephone Number, Urgent Notice, Western Australia

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Tag: Real Estate Agent