Buying a property in New Zealand involves several steps that you need to be aware of to ensure a smooth and successful transaction. Here’s a breakdown of the process, from planning to taking possession:
1. Plan & Negotiation Phase:
During this phase, you aim to secure the property by signing a sale and purchase agreement, agreeing on the price and contract terms. This agreement does not make you obligated to buy the property but grants you the right to proceed with the purchase after completing due diligence.
2. Conditional Contract & Due Diligence:
Once you have a property under contract, it’s essential to conduct thorough due diligence to ensure it meets your expectations. This includes obtaining a Land Information Memorandum (LIM), a building inspection by a qualified builder, a registered valuation by an expert valuer, a rental appraisal from an experienced property manager, and securing an unconditional offer of finance.
3. Unconditional Contract:
If you are satisfied with your due diligence, instruct your solicitor to confirm that all conditions of the contract have been met. This makes the contract unconditional, legally obligating you to purchase the property.
4. Pay Deposit:
After the contract becomes unconditional, you will need to pay the deposit. It is preferable to pay the deposit on the unconditional date and obtain a receipt. The deposit is typically paid to the agent’s trust account or the solicitor’s trust account for private transactions.
5. Loan Documentation Signing:
Between the unconditional date and the settlement date, you enter the period where you are legally committed to owning the property but have not yet taken possession. Inform your bank or broker about going unconditional to prepare the loan documents. Your solicitor will check and have you sign the documents, including mortgage-related papers, which are then registered with Land Information New Zealand (LINZ).
6. Final Check of Property:
One day before the settlement date, conduct a final check of the property to ensure its condition aligns with the purchase agreement. Verify that the included chattels are still present.
7. Settlement – Money Changes Hands:
Confirm your satisfaction with the property to your solicitor. The bank transfers any borrowed money to your solicitor’s trust account, and you pay any outstanding deposit. Your solicitor receives a settlement statement from the vendor’s solicitor, detailing the amount to be paid at settlement, including the balance of the purchase price, prepaid rates, and penalty interest if applicable. If there is an existing tenant, ensure a bond transfer is signed. Your solicitor prepares a settlement statement for you, including their fees. After your approval, your solicitor transfers the money due to the vendor to their solicitor’s trust account. The vendor’s solicitor acknowledges the completion of settlement, and your solicitor informs you.
8. Take Possession:
At this point, you legally own the property and can collect the keys. Expect to receive a copy of the new title, bearing your name, from your solicitor by mail.
By following these steps, you can navigate the property buying process in New Zealand with confidence and ensure a successful outcome.
Your Outside Team
Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.
Aside from business consultation, we are business accountants Wellington who offer accounting, bookkeeping, payroll services designed to help you achieve greater financial success.
You can click here to speak to a business, accounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
Address: Level 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975
As a business owner, reviewing your financial reports each month is essential for maintaining control and steering your business in the right direction. Here are six key reasons why you should prioritize this important task.
Starting your own business is exciting, but handling all the financial details can be overwhelming. Instead of spending your time managing the books, you could focus on growing your business. This is where expert accounting firms like Outside Accounting step in.
Choosing the right accounting software is crucial for your small business, and with so many options available, it can be challenging to decide which one is best. Xero Accounting Software stands out as a popular choice, but what makes it so special? In this article, we’ll explore six key benefits of using Xero for your small business. If you’re looking for a skilled, cost-effective accountant in Wellington to assist with your small business bookkeeping, reach out to the friendly team at Outside Accounting today.
Bookkeeping fraud, including embezzlement and theft from company accounts, can quietly drain your business’s resources for years before being discovered. The consequences can be devastating. This guide will explore how bookkeeping fraud happens and provide five effective strategies to protect your business from it.
Taking control of your small business’s financial operations is a critical step toward long-term success. With accurate financial planning and expert assistance, you can create a roadmap for expansion and growth within your industry. While managing small business finances may seem daunting, following the right steps can make the process both enjoyable and highly profitable.
As a small business owner, keeping a close eye on expenses is essential, and that includes accounting costs. You might wonder if your accountant’s fees are worth it or if you could handle it yourself using online accounting software.
ALL POSTS
NEWSLETTER SUBSCRIPTION