22 January 2016

What to ask before buying

Buying a property is a major decision, money invested in obtaining the right expert advice may save you many thousands of dollars later.


share

As a serious buyer, it is important to know that you are dealing with a serious seller, and not just one who is testing the market.

Have a look at what sales method the seller has chosen. Some, such as auctions and tenders require an investment on the part of the seller - itself an indicator of the sellers motivation.Secondly, look to see if the seller has invested in marketing. Again, it is a good indication of a motivated seller if there has been an upfront investment of a few thousand dollars.

'Nothing is more dispiriting than emotionally bonding with a property, investing time and money due diligence, building inspections, valuers and lawyers simply to find the seller has a ridiculous price expectation.'

It is a legal requirement that we disclose any known or suspected defects to potential purchasers. Ask the agent whether they are aware of any ‘defects’ with the property. These may include, but certainly are not limited to weather tightness issues, defects with the title (particularly important with cross leases), defective chattel, presence of asbestos, un-permitted works, non issue of code compliance certificates and much more. Be sure to make diary notes of the answers in case the information proves to be questionable at a later date.

 

 

Ask whether anyone has had a building report done. If so, does that buyer continue to have interest. If not, what was in the report to deter them. It is also important to ask the agent if they are aware of any plans for future development in the area which may impact upon the property. This information is also available on the council website.

‘We always find it intriguing that many potential buyers do not obtain expert advice as they don’t want to find anything wrong with the property they have fallen in love with. Such a casual approach may prove to be extremely costly at a later date’

Understanding the offer process is also crucial. What you need to be aware of is that unless the marketing states a specific process i.e.with auctions marketed as ‘will not be sold prior’ vendors may choose how they handle any offers. This may include requesting the agent to notify all interested parties that an offer has been presented and requesting whether any other party wishes to write an offer. A vendor may also choose to bring an auction or other advertised sale date forward or simply accept an offer without reference to other buyers. Not all companies will contact all interested parties if an offer is presented so ask what the company policy is around offers and the pre-auction process.

Our advice to all interested buyers is to seek what advice you need as expediently as possible so that you are prepared should another offer be presented. Similarly, ensure all draft contracts, titles, cross leases, LIMs or other documents are checked by your lawyer before signing. If a property is marketed with some form of set date of sale, don’t assume that it will continue to remain on the market until that date - it may well be sold prior unless marketed otherwise.

July 2018 Update

From 1 July 2018, lawyers and conveyancers are required to verify the identity of their clients in accordance with anti-money laundering legislation. If your lawyer cannot verify your identity in line with the legislation, they will not be able to act for you. If your lawyer cannot act for you, you may not be able to satisfy the conditions of your property purchase and will not be able to settle your property purchase or sale. For more information about identity verification please read this flyer here.

share

Return to blog

More recent posts

15 August 2019

Past is Present


After six years living in inner-city Sydney, architect Matt Brew has returned home, setting himself up in a classic 1970’s house that clings to a steep hillside, lushly covered in native bus…

More
8 August 2019

All Fired Up


An expanding band of artisans in our city are taking up crafts like pottery – relishing the slower-paced way of life – as they pursue their passions, work from home studios and look after th…

More
1 August 2019

Home Sweet Tiny Home


What the Tiny House movement is about and why you should pay attention

More
25 July 2019

Timeless Style


Mid Century Swag sets the stage for eye-catching, timeless and unique designer décor pieces.

More
11 July 2019

World Famous in New Zealand


Already a multi-award winner in her own country, this larger-than-life local designer has taken her work to the rest of the world, and come out on top.

More
4 July 2019

All Blacks or Tech


An All Black or Tech Innovator? – Your Child’s Decision Might Not Be So Obvious in the Future.

More
20 June 2019

Better Taste – Naturally


Little Bird Kitchen serves exciting, innovative and delicious plant-based organic food – and people are loving it.

More
13 June 2019

Looking Positive For Auckland


We all know Auckland is a fabulous place to live, but it’s also still a great city to invest in property. Here are 10 reasons why.

More
6 June 2019

Space, The Final Frontier


A solution to your decluttering problems could also offer up a cash bonus.

More

Contact Us

Are you interested in knowing more about one of these articles? Please fill out the form below to get in contact with us.