Auckland Property Lawyers – The Steps They Take

Owning their own home is the dream of many Kiwis. Thousands go on to own more than one house by buying rental properties. For many, this is their main way of saving for retirement. Most people though, only occasionally buy or sell a house and so are not as informed about the legal processes involved. This post looks at the task that Auckland property lawyers perform.

 

A Title Search

After receiving a signed and agreed Sale and Purchase Agreement, Auckland property lawyers will begin the process by carrying out a Title search. The purpose of this is to confirm that the seller on the S and P is the verified owner of the property and has the authority to sell the land or house.

 

The title search will also give the lawyer the precise details of the property concerned so that they can use those in the preparation of the subsequent documents to complete the purchase.

 

Checking The Contract

Since most real estate transactions use the and Auckland District Law Society Sale and Purchase Agreement, there is no need for checking the fine detail of the main clauses. However, often people will want to include other clauses.

 

These are often about finance, or any remedial work that needs to be completed before settlement.

 

It is important that property lawyers write these clauses so that clients are not disadvantage by poor wording which doesn’t convey their intent.

 

At this stage, the lawyer will verify that the contract has the correct names of the seller and buyer. For the seller, they check against the details from the title search. For the buyer, some people want to use a different entity such as a family trust, or, often in the case or buying a rental property, a company may be the formal owner.

 

Verifying Details With Auckland Council

The lawyer needs to confirm that the Council has signed off and consented any major renovation works. If there is any unconsented work, the lender is likely to withdraw their finance offer.

 

As a result, the seller must provide a Certificate of Compliance, and the buyer’s lawyer will confirm that the certificate is compliant with the details held by Auckland Council.

 

Insurance

As the new owner will be liable for any finance, it is important to have buildings insurance cover that comes into effect upon settlement. The lawyer will ensure that the owner has this in process.

 

Being Unconditional

After all of the above actions are confirmed, the buyer’s lawyer can confirm to the seller’s lawyers that the transaction can go unconditional. This means that after this stage, it is very difficult to withdraw from the agreement. To do so will cost a lot of money.

 

Confirming LINZ Data

When the real estate deal goes unconditional, the lawyers will prepare the data for the LINZ database. This shows the new owner and the date from which they took possession.

 

Loan Documents

If the buyer using finance such as a mortgage, the lawyer will have had communication with the lender to set-up documents for the transfer of the finance.

 

Part of this set of documents will be the one which says that the lender has security over the property until all monies are repaid.

 

The buyer’s lawyer will receive the finance from the lender and then transfer to the seller’s lawyer. That lawyer will settle the invoice of the real estate agent from the sale proceeds and also authorise the agent to release the keys to the new owner.

 

The Final Steps

The buyer’s lawyer will tell the Council and Quotable Value that the ownership has changed and give details of the new owners. They will also confirm the changes with the LINZ database.

 

Auckland Property Lawyers – Which One?

There are lots of property lawyers in Auckland, so which one do you choose?

 

Firstly, you can ask family and friends if they can recommend one. Another easy step is to look online and read the Google reviews about them.

 

Arrange an initial meeting with one of the Auckland property lawyers, and ask them to explain their role. It is also a good idea to get an idea of their fees.

 

McVeagh Fleming is one of the leading law firms in the city. Click the link for more details.