Buying or selling a residential property can be one of the most significant transactions in your life.

Whether you're stepping into home ownership or transitioning to a new property, understanding the process is crucial. Here are some valuable insights that I would recommend looking into throughout your home buying or selling process:

Sale and Purchase Agreement (S&P):

The S&P agreement records the terms of the agreement. Ensure you fully understand all the terms, as it's not just about sealing the deal with a purchase price and the settlement date. The better your understanding the more certain you can be about the transaction. 

Choosing the Right Entity:

Deciding what entity to purchase the property under can have legal and financial implications. Consulting with a lawyer and accountant can help you determine the most suitable structure, whether it's purchasing as an individual, a trust, or a company.

Financing Approval:

Securing finance is essential for many buyers. Understanding which entity to get finance approved through and ensuring you meet the lender’s requirements is vital. Work closely with your mortgage broker and lawyer to navigate this process smoothly.

Title Review:

Before signing an agreement or going unconditional, it's crucial to review the property's title. This includes checking for any registered instruments that may affect your intended use of the property, such as having design requirements or even restricting you as to what type of dog you can own.

Building Inspection Report:

Obtaining a builder's report can uncover any hidden defects or issues with the property's structure. This information is invaluable for making informed decisions and negotiating if necessary.

Land Information Memorandum (LIM):

A LIM provides valuable information about the property, including zoning, building consents, rates, and any known hazards. Obtaining a LIM report is essential for buyers to understand the property's history and potential issues before proceeding with the purchase.

KiwiSaver:

KiwiSaver can be a valuable resource for first-home buyers, offering assistance with the deposit or at settlement. Understanding when and how to use your KiwiSaver funds is crucial, discuss this with your lawyer and mortgage broker.

Ownership Agreements:

If you're purchasing the property with a partner, friend, or family member, it's essential to have a clear agreement in place. The agreement will outline each party's rights, responsibilities, and contributions to avoid potential conflicts in the future.

Navigating the legal process of buying or selling a residential property in New Zealand requires attention to detail and expert guidance. By understanding these key insights and seeking professional advice when needed, you can ensure you are protected.

For personalised legal assistance and guidance, don't hesitate to contact our experienced team of property lawyers. We're here to help you every step of the way.