Legal Stuff

Sale & Purchase Agreements

A Sale & Purchase Agreement is best completed by a real-estate agent, lawyer or conveyancer acting for either party. The Sale & Purchase agreement will contain all of the standard terms and conditions essential for your swap to be a successful one. You can also add the specific terms and conditions that relate specifically to your transaction. Such things as chattels, legal description and lawyer's details are all contained in this Agreement.

You will also have added to this Agreement any conditions upon which the swap is dependant. A critical condition will be that the sale of your property is conditional upon you buying the other property. Other conditions that you may wish to include may involve a title search, LIM and builders reports, finance, valuation etc. Your lawyer will be the best person to advise you in this regard.

With respect to price, you will have generally agreed during your negotiation the 'cash difference' that will bridge the value gap between the two properties. This could range from $0 to many $000. This must be specified on your Sale & Purchase Agreement.

The completed Sale & Purchase Agreement will be signed by you and usually faxed to the other party's lawyer or conveyancer. Dependant upon your conditions etc, the other party may sign right away or further negotiation may be necessary to seal the deal.

Experts Will Get It Right First Time

An essential step in the process is to check the title of your new property. This will detail any easements or land covenants that might impose restrictions like access and right of way etc. While this may not affect you immediately, future plans may be impacted if restrictive easements are in place.

Checking local authority LIM reports and Compliance Certificates is also an important step. 'Leaky buildings' and uncertified decks, additions and buildings are all traps that can be avoided through these checks.

A certified builder's report is an easy and cost effective way of ensuring that you fully understand and appreciate the condition of the home you are about to own.

Make sure that you understand exactly who owns the property and who has a call on it. Again your lawyer can establish this very easily for you.

Guarantees and loan securities are in many forms and are generally well beyond the novice. They can have long-term implications and can mean the difference between a successful swap and an unsuccessful one. So have them checked by a professional.

Your home is, without doubt, one of the most valuable assets you will ever own. Even though your swap may involve little or no actual cash, the value of the property involved is considerable. Having an expert preparing loan documents and providing the necessary certificates that secure the necessary funding is critical.

An independent, registered property valuation on each property is an easy, cost effective and objective approach to determining any valuation gap that may exist between the properties to be swapped. Quotable Value NZ Ltd offers comprehensive property valuation services at very competitive rates. They can be found at www.qv.co.nz

Remember, a key advantage of swapping is that both ends of the transaction can occur on the same day. The experts can make this happen like clockwork.

Members of the NZLS Property Law Section are trained to ensure that your interests, and your interests alone, are being protected.

They can be found at www.propertylawyers.org.nz

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