Tag: Settlement Date

Property Purchase – Pre Settlement Inspection

February 7, 2012

Property Purchase – Pre Settlement Inspection

When you are a Purchaser in a Property Conveyancing Transaction you are entitled to complete a Pre-Settlement Inspection prior to your Conveyancing Settlement being finalised. The property must be in the same state and condition as at the date you entered into the Agreement for Sale and Purchase.

We encounter many problems prior to settlement when our Purchasers have completed their final property inspection who raise concerns with some of the following matters:

1. The lawns and gardens have been left untidy.

2. The house and carpet have not been professionally cleaned.

3. The is extensive rubbish which has been left at the property.

4. Light bulbs are missing.

5. Electricial fixtures and fittings are not working.

6. The pool has been left unclean or the equipment is not working.

These are just to name a few. The biggest problem from a Property Conveyancers point of view is establishing if the issues raised were factual at the date the Agreement for Sale and Purchase were entered into.

The best way to avoid any issues at a Pre-Settlement Property Inspection is to have relevant clauses and conditions in the Agreement at the time it is being prepared. Here are some of the conditions we would recommend:

The Vendor will at his cost arrange for a commercial cleaner to clean the interior of the house and have the carpets commerciallycleaned prior to settlement date.
A warranty from the Vendor that the dwelling and property including the lawns, gardens and surrounds will be left neat and tidy at settlement.
The Vendor/s warrant that all Electrical, Gas and Plumbing fixtures and fittings will be in good working at prior to settlement.
The Vendor/s warrant that the pool will be professionally cleaned prior to settlement, and all pool equipment including the pump will be in good working order at settlement.

If it is clearly spelt out as a condition or warranty in the Agreement for Sale and Purchase we have something to work with, if it not it is pretty hard to determine.

So our recommendation is where you can have the Agreement checked by your Conveyancing Practitioner to make sure the conditions are to your benefit.

Want to know more please visits us @ https://www.propertyconveyancingservices.com

Cheers Kim

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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.

First Home Buyers – KiwiSaver

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November 28, 2010

Great news, great news. Did you know -

If you or any of your clients are first home buyers and have been a member of Kiwisaver for 3 years you may be able to withdraw some of your Kiwisaver savings to put towards buying your first home.

You are not able to withdraw the $1,000 kick-start contribution.

Furthermore you may also be eligible for a first home subsidy.The subsidy is administered by Housing New Zealand and will be paid to your Conveyancing Practitioner or Solicitor on the settlement date.

To be eligible for the subsidy you must -

* Have contributed at least 2% of your income to a Kiwisaver scheme, or a complying superannuation scheme for at least 3 years.

* Be buying your first home.

* Be planning to live in the property for at least 6 months.

The subsidy is worth $1,000.00 for each year you’ve been contributing to Kiwisaver, up to a maximum of $5,000 for 5 years. Even better if your a couple buying a house together you both qualify for a subsidy and could receive a combined subsidy up to $10,000.00.

So what are you waiting for the property market is full of bargains for first home buyers.

For any further help or advice do not hesitate to contact your Industry Professionals. Property Conveyancing Services 0800 2 87878.

We would love to hear your feedback and comments

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Buying a Business

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November 4, 2009

Before entering into any purchase of a Business you must complete your due diligence. Where to start:

1. What price should be paid? Goodwill, plant, fixtures and fittings and stock will generally make up the price. The price will be broken down into these caterogories in the Agreement with value given to each one.

2. Turnover – check the Financials and have them assessed by your Accountant, not the same Accountant as the Seller. Ensure you are covered by a Seller’s warranty, especially if a turnover figure has increased due to a one off increase in business activity.

3. Are there any patients, trademarks or other intellectual property included in the goodwill and are they dependent on any licenses.

4. Are the premises authorised for the operation of the busines or any changes you may have planned for the business. Make appropriate checks under the Resource Management Act 1991. If the property is leased the Landlord will need to consent to the assignment of the Lease.

5. Fixtures and fittings – includes items such as machinery, vehicles, furniture etc. You should have listed all fixtures and fittings which are to be included in the purchase. Again enquiries will need to be made to check if any of the fixtures or fittings are leased or under a hire purchase agreement as these will need to be paid out at settlement. It would be prudent to check what fixtures and fittings belong to the Landlord to ensure they are not included incorrectly by the Seller.

6. Stock – How is this to be valued? Generally an estimate figure is allocated and the actual value at the close of business on the settlement date is determined by a stock take.

7. Contracts – Are there any contracts such as to buy goods or suppy goods and or services. Ensure these pass to you on terms and conditions as they did for the Seller. Include a condition that the Seller will introduce you to the suppliers and clients. This relationship is very important.

8. Ensure a warranty is included in the Agreement to ensure all debts and liabilities of the business are paid out at settlement.

Stay posted for the next tips on buying a business. Cheers Kim

Agreement for Sale and Purchase

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October 28, 2009

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

Tag: Settlement Date