KEY STEPS INVOLVED WITH BUYING A PROPERTY
When you are armed with knowledge of the key steps involved with buying a property this will increase your chances of success in securing your dream home. You will need a lawyer and other advisers to help you navigate your way through these key steps.
The key steps involved with buying a property by negotiation can be summarised as follows:
1. Preliminary Stage
- Talk to your bank or mortgage broker to determine your budget and what price range properties to look for.
- View properties and talk to real estate agents working in your desired area.
2. Making an Offer
- After finding your Dream Home, work with the agent and your lawyer to prepare an agreement for sale and purchase with relevant conditions e.g. finance, LIM report, building report.
- Sign and submit your offer to the vendor.
3. Conditional Agreement / Due Diligence
- Once your offer is countersigned by the vendor there is a conditional agreement.
- The deposit is normally payable to the agent on signing (or once conditions are satisfied).
- Work through the conditions and your due diligence on the property with your lawyer, broker and other advisers.
4. Unconditional / Prepare for Settlement
- Once all conditions are satisfied then the agreement is unconditional and you cannot cancel and must complete settlement of the purchase of the property.
- Prepare for settlement – arrange bank documents with your broker and bank.
- If you are using Kiwisaver withdrawal funds for the purchase of the property then complete and send to your provider all withdrawal documents.
- Organise house insurance and life insurance.
- Your lawyer prepares the settlement documents like the transfer of title to the property and mortgage over the property to the bank.
- Meet your lawyer to sign all bank documents and settlement documents.
- Arrange a pre-settlement inspection of the property through the agent.
- Transfer your own funds to your lawyer.
- Settlement day: your lawyer receives the loan funds from the bank and combines it with your funds. The lawyer obtains all necessary undertakings from the vendor’s lawyer (e.g. to discharge the vendor’s mortgage over the property) and then your lawyer pays to the vendor’s lawyer the settlement amount.
- Settlement complete: the title to the property is registered in your name and the vendor’s lawyer instructs the agent to release the keys to you.
- Collect keys and move in to your Dream Home.
Contact the team at Blackwells for help with navigating your way through these key steps involved with buying a property.