Legal Tips

1. Contact a lawyer - they will explain the complex legalities and all steps in the house buying process
2. When you make an offer, normally the real estate agent will prepare the agreement for sale and purchase. Standard forms prepared by the real estate industry are used.
3. If your offer is not subject to any conditions, once you sign the agreement and it is accepted by the seller, then you are legally bound to buy the property
4. Check with your lawyer about whether or not your offer should be subject to certain conditions and which ones are the most appropriate for you. Some common conditions that may accompany your offer are:
   
   
   • The offer is subject to finance being arranged
   • The offer is subject to a satisfactory search of land title.
   • The offer is subject to a satisfactory building or engineers report.
   • The offer is subject to a satisfactory LIM (Land Information Memorandum) report from the local Council.
   • The offer is subject to the sale of your existing home
     
5. Homes are sold through negotiations. Offers, counter offers, and rejections of offers will pass between the seller and buyer until both agree or either the sell or buyer stops.
6. Once you and the seller have signed the agreement, you are bound or committed to buying the property on whatever conditions are included in the offer. This means that if you have not stipulated any conditions in your offer, like those set out in Tip No 4 above, you will have entered into an unconditional agreement even if you do not have the money to pay for it. So be careful. Make sure you have the funds - talk to your NZMBA Mortgage Broker.
7. Auctions - if your bid is successful then this is similar to an unconditional agreement. So do all your checks before you make your bid. If you win the bids you are committed to buying the property. Make sure you have the funds - Talk to your NZMBA Mortgage Broker about arranging finance before you bid.
8. Sale by Tenders are written bids sent to the seller with your best offer in them. The offer can contain conditions. You need to have a deposit ready. Talk to your NZMBA Mortgage Broker about arranging finance before you bid.
9. When agreement is reached, it will also state the agreed purchase price, deposit required, the settlement date and possession date.
10. The deposit is generally payable on the signing of the agreement and may vary from 10 - 20% of the purchase price.
11. Make sure that you talk to your NZMBA accredited mortgage broker about finance and your home loan.
12. An NZMBA mortgage broker will explain the home loan process to you.

This is general information only and intended to help you ask the right questions. You should consult your lawyer.