Buying Property in New Zealand

Buying property in NZ looks simple and exciting. After all, you just need to put together the down payment while the rest of the money for buying the property is financed by the bank, isn’t it? Well, it is exciting but not as simple as it sounds. Here are some of the important steps that you keep in mind when looking to buy a home.

Hire services of solicitor

Once the homeowner accepts your offer, you sign a Sale and Purchase Agreement with them. This important document contains all important points of the deal and how you pay the money to the owner according to a schedule. This agreement is worded legally and includes conditions put forth by both parties. Engage a solicitor who reads all the points of this agreement and Okays them before you sign it.

Once Sale and Purchase Agreement has been signed, it is seen by the bank even if it has given a pre-approval for a mortgage. A Bank considers this necessary to give its approval to the property being purchased by you.

Builders Report

You can include a condition of builder’s report in your sale and purchase agreement. This condition gives you the right to walk away from the offer you made if the report of the builder finds structural issues with the house and you find them serious. Sometimes, there is a rider to this condition that states that the homeowner would get the problem fixed to your satisfaction and you would go for it as agreed upon.

LIM Report

A LIM, or Land Information Memorandum is issued by the council. This report is not mandatory but strongly recommended to obtain before you can proceed to buy a property. This summary report can take at least 10 days from the date of application. You can expedite the process by paying an additional fee to get the report sooner.

Title and Property File Search

This is a very important search about the current and previous ownership of the property that you are buying. It confirms that the title is clean and does not involve any issues that might present legal challenges in the future. This search gives you a complete legal picture of the house and peace of mind about its ownership.

Talk to real estate expert, or solicitor before making your move so as to be on the safe side.