Purchasing A New Property - Speak With Us Before You Sign The Agreement

Home News & Views Purchasing A New Property - Speak With Us Before You Sign The Agreement

Speak With Us Before you Sign the Agreement

Don’t be like John

Buying a house is known to be one of the most stressful times in your life, and competing with other would-be purchasers in a heated property market doesn’t help the stress levels.

Often the pressure can be on to make a snap decision and put an offer on a property that you’ve only had a quick look around.

As the Agreement for Sale and Purchase of Real Estate is likely to be one of the most important documents you ever sign, make sure you talk with us first just so you know what you’re getting yourself in for.

It’s acknowledged that the ‘cleaner’ an offer is the more appealing it is to the vendor.

We often hear of buyers feeling compelled to make an offer subject to few, or no, conditions. Once the

agreement is signed both parties have legal obligations that include using their best endeavours to satisfy any conditions, and failing to do so can prove costly.

Auctions

If you’re looking at buying a property at auction, any bid you make above the reserve will be an unconditional offer. At the fall of the hammer, you are legally obliged to purchase the property on an unconditional basis if you are the highest bidder.

There’s nothing we can do if there is an issue with the title after the auction, so it is vital that you get in touch with us before auction day so we can research the property. We can look over the title and assess the auction

pack to ensure that the property is in order.

Solicitor’s approval clause

Don’t be fooled into thinking that there will always be an ‘out’ by inserting a ‘Solicitor’s Approval’ clause into the agreement. There is a common misconception that these clauses are as good as a ‘due diligence’ clause, and

that if you change your mind you can simply tell us not to approve the agreement.

We are limited to only disapprove an agreement if there are genuine legal issues, mostly associated with the form of the agreement or the title to the property. Our hands will be tied if you’ve simply made a bad decision or changed your mind.

A horror example

John Robinson (not his real name) made an offer on a property only subject to solicitor’s approval. The offer was immediately accepted without any negotiation between the parties. Over the weekend John started to get cold feet – he believed he had paid too much for the property. This was later confirmed by a subsequent valuation at the request of John’s bank; the property was valued at $20,000 less than the offer.

John didn’t want to proceed with the purchase at that price. Unfortunately, there was nothing his lawyer could do, as the form of the agreement and the title to the property were in order.

John had been pre-approved by his bank well above the purchase price, but the bank was only prepared to lend John 80% of the valuation. The extra money John had planned to spend doing up the property had to be put towards his 20% deposit, but it was fortunate that he did have sufficient funds to settle. It would have been a different story if John had been relying on being lent more from the bank.

The first his lawyer heard about John’s purchase was when a copy of the signed agreement was sent through by the real estate agent. Had John been in contact with his lawyer before making an offer they could have ensured a more informed offer was submitted.

Don’t be like John. If you’re considering buying property, make sure you talk to us at the earliest opportunity to let us know your plans. Not only can we talk you through the process and help make it a little less stressful, but we can also ensure you are not locked into obligations that you can’t satisfy.

Or go back to overview

Receiving an inheritance during your relationship

Relationships can be complicated waters to navigate at the best of times, but it can become even trickier when thought needs to be given to relationship property matters.

The Bank of Mum and Dad

Lending money to your children to buy their first home can be a generous and life-changing move, but it’s essential to consider the legal implications before proceeding.

Who really wants to be a trustee?

The Trust Act 2019 outlines the obligations of trustees, and when taking on a trusteeship an individual or company must be aware of the risks involved.

innovationagriculture energya tractor powered by livestock manure

Rural eSpeaking Summer 2022

Trusts and succession

Commercial eSpeaking Summer 2023

Letter of Intent

Fineprint Summer 2022

Greenwashing

Property eSpeaking Summer 2022

Negative equity on your property?

Commercial eSpeaking Spring 2022

Contract Compliance

Employment Investigations

ITS EMPLOYMENT MONTH!

Off the Record Episode 5 Jayne cover 1000

Off the Record - How will the new housing density rules affect Queenstown?

https://www.youtube.com/watch?v=Ml7nmEmtvSY

Trust eSpeaking Spring 2022

Trusts Act 2019 also affects executors and administrators of wills

Whats the Difference Between a Debtor and a Creditor

Fineprint Winter 2022

Creditor compromise regime: Another option in insolvency Guest editorial: The economy - tougher times ahead? Love, heartbreak and...death? Make a new will and EPA's when you separate New Incorporated...

Off the Record - How to Survive a Legal Dispute

https://www.youtube.com/watch?v=lZ6pC9agrrs

Commercial eSpeaking Winter 2022

2022 Budget

Off the Record - Can your business handle divorce?

Senior Associate Scott Donaldson and Senior Solicitor Alice Milne have released episode 3 of their podcast, Off the Record.

Off the Record - A New Era for Directors' Duties

Senior Associate Scott Donaldson and Senior Solicitor Alice Milne have released episode two of their podcast, Off the Record.

Rural eSpeaking Autumn 2022

He Waka Eke Noa

CAN AN OWNER OBTAIN SPECIFIC PERFORMANCE OF A BUILDING CONTRACT UPON A BUILDER’S REPUDIATION?

Duncan Anderson, Associate, Mactodd Lawyers, Queenstown

Off the Record - Fair Pay Agreements

Senior Associate Scott Donaldson and Senior Solicitor Alice Milne have started a new video podcast where they address issues in law affecting Queenstown businesses.

Fineprint - Autumn 2022

Mental health in the workplace Co-ownership arrangements Checking your home is accurately insured Helping your family before you pass away Notifications of privacy breaches increase significantly Post script

Commercial eSpeaking Summer 2022

Contractors

Fineprint - Summer 2021

- Defining a de facto relationship

ricardo gomez angel z6CcN8rlftY unsplash2

INTERNATIONAL CONSTRUCTION LAW JOURNAL ARTICLE

Mann v Paterson Constructions Pty Ltd—Builders' Quantum Meruits Revisited' (2021) 37 Construction Law Journal 207 discusses recent changes to the law in Australia regarding restitutionary claims able to be made...

Fineprint - Winter 2021

Buying off the plans New edition of To Trust or Not to Trust Climate Action Toolbox Post-Covid working world An independent trustee Postscript

Rural eSpeaking Autumn 2021

Rural Leases - Should be more specific

Rural eSpeaking - Summer 2020

Investment in Farming - A focus on syndicated farm investments The finite supply of water - Water easements Over the Fence - Crown Pastoral Land Reform Bill (submissions open),...

Commercial eSpeaking - Spring 2020

Fineprint - Winter 2020

Commercial eSpeaking - Winter 2020

The government’s Budget, presented by the Minister of Finance the Hon Grant Robertson on 14 May has addressed, in the words of the Minister, “a 1-in-100 year health and economic...

UNDERSTANDING EMPLOYMENT LAW DURING COVID-19

Home Buying, Selling & Moving Checklist

These helpful checklists will guide you thought some of the most important areas you and your lawyer need to address when purchasing or selling a residential property and also when moving.

On The Move - A Practical Guide For Buying & Selling Your Home

Also includes comprehensive checklists to you don't miss out any important step as well as details on how to protect your assets and when you also need to consider a...

Australian Guide To Buying Property In NZ

Not all investments in NZ require consent from the Overseas Investment Office (“OIO”) but like many countries NZ has controls on overseas investment. Certain land is subject to OIO consent.

Family Trust Guide

This practical guide designed to steer you through the essentials of Family Trusts including: Is a family trust for you? Protection given by a Family Trust. Planning for your life. Duties of trustees and how to run a trust. Costs.

Guide To Buying Real Estate In New Zealand

Our local knowledge, experience and expertise will provide you with the support and advice you need for a successful property purchase, regardless of the size or complexity of the transaction.

Chinese Buyers Guide To Buying Property in NZ

We have produced a practical guide on buying a home or an investment property in New Zealand in Mandarin.

Estates Booklet - The Closing Chapter

You’re catapulted into thinking about organising a funeral, whether it will be a cremation or burial and how to organise the day, and then you also need to think about...