This article explores the conveyancing process when purchasing property in New Zealand, featuring insights from Krystle Gardner, owner of Clendons North Shore law firm.
When to Contact Your Lawyer
Gardner recommends reaching out to a lawyer as soon as you decide to begin house hunting. Early contact enables swift action if you find a suitable property and wish to submit an offer. Your solicitor collaborates with real estate agents to ensure compliance with all legal requirements.
Timeline for Document Processing
Agreement for Sale and Purchase
The real estate agent needs to prepare the draft agreement for sale and purchase and provide this to your lawyer to review. This initial phase typically requires 24 to 48 hours. Once an offer is accepted, the conditions process commences, involving:
- •Securing home loan approval from a lender
- •Conducting legal inquiries about the property
- •Obtaining a Land Information Memorandum (LIM) from local council
- •Arranging building inspections and meth testing
- •Commissioning registered valuations when required
For auction purchases, legal due diligence occurs beforehand, allowing confident bidding and same-day agreement signing.
Home Loan Documents
Banks provide loan instructions containing standard documentation:
- •Home loan agreements
- •Flexible facility agreements
- •Terms and conditions
- •Disbursement authorizations
- •Solicitor's certificates
Lawyers require a minimum of 48 hours to review and prepare the documents after receiving bank instructions.
Trust Structure for Property Ownership
Some circumstances warrant placing property in a trust, while others do not. Seek legal counsel early to determine the most appropriate ownership structure before home loan documents are prepared.
KiwiSaver Withdrawals
Solicitors assist with KiwiSaver withdrawals and receive funds into their trust account as part of the purchase price, streamlining the process for first-home buyers utilizing these savings.
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