There are numerous buyers guides available both on the internet, from your financial advisor and also real estate agents that deal with the overall buying process. The steps below cover off more of the steps that take place that are important to the relationship between you and your lawyer.

 

Getting your finance in order

• Bank loan applications are arranged by you either directly with your bank or through a mortgage broker who will liaise with banks on your behalf.
• Government grants such as the First Home Grant or First Home Partner Grant are arranged partly by you direct with Kainga Ora and partly by us direct with Kainga Ora. You can read more about that here.
• If you are planning to use your Kiwisaver toward the deposit, then you should discuss that with us prior to signing a purchase agreement or attending an auction, as it can take up to 15 working days to obtain Kiwisaver funds.

Making an offer on a property or attending an auction

• Ideally you will send a copy of the draft purchase agreement to Nu Legal prior to signing it. We can then make sure that the necessary conditions are included in the agreement, for example a building report, LIM or due diligence conditions.
• If you are planning to attend an auction, then you should have all your checks done prior to bidding because when you bid at auction, you are bidding unconditionally (that is, if you win then you are legally obliged to go through with the purchase). You should let us know if you’re going to bid at auction so that we can check the auction agreement, the title and discuss any other documents you should obtain and check prior to bidding.

Offer has been accepted by the Vendor or you win at auction

• If you win at auction, then the agreement will already be unconditional and we will let you know what needs to be done to get ready for Settlement.
• If your offer is accepted, then we will let you know when your various condition dates are due and what needs to be done in that regard. Once you’ve completed your checks and if you’re happy to proceed with the purchase, then you should let us know that you’d like to go unconditional and we will arrange that with the Vendor’s lawyer.
• The deposit is generally payable once the agreement is unconditional (generally within 3 working days) so you should have this arranged in advance. If you are using your Kiwisaver toward the deposit then please discuss this with us prior to going unconditional so that we can ensure funds will arrive in time.
• You should let your bank or mortgage broker know as soon as your agreement is unconditional and what the settlement date is, so that they can arrange the loan documents to be sent to us.

Getting ready for settlement

• Prior to settlement day (usually in the preceding 1 to 2 weeks) we will receive the loan documents from your bank. We will then forward you a copy and arrange a meeting with you to sign those and the rest of the settlement documents. Loan documents should be signed at least 2 business days prior to settlement date.
• In the lead up to settlement the real estate agent will contact you to arrange a pre-settlement inspection, and you should do this around one to two days prior to settlement. If you have any concerns as a result of your pre-settlement inspection, you need to let us know immediately so that we can address these with the Vendor’s lawyer prior to settling.

On Settlement Day

• We will arrange for settlement to take place as early in the day as possible, however the reality is that the timing is also dependent on when we receive bank funds and some important documents from the Vendor’s lawyers. We advise clients to plan for settlement to take place mid to late afternoon – around 3 to 3:30 pm. It’s possible settlement will happen earlier than this, but to be on the safe side in terms of arranging furniture movers etc., it’s best to plan on having access to the keys at around 3 or 3:30 pm.
• We will let you know once settlement is complete and the agent will then contact you directly to arrange release of the keys.
• In the week or so afternoon settlement, we will be in contact with a Reporting letter and copy of the new title.