Source: bayleys.co.nz
This guide is designed to help you through the final stages of purchasing a home, from having made an offer to getting organised for moving day. We understand it is not a house you are buying, it is a home. For most Kiwis, owning your own home is a goal we strive for and we want to make the experience as rewarding and stress free as possible for you during this time.
“ For most Kiwis, owning your own home is a goal we strive for. ”
Before buying a home have you investigated the costs?
Before buying a home you need to be aware of all the possible costs associated with buying a property. Take note of the following categories and ensure you understand what the costs are associated with each.
This is a general guide of what you can expect to pay:
Lawyer $2,000+ (depending on the complexity and work involved)
Valuer $800+
Building Inspector $800+
LIM Report $270 approx (standard 10 working days)
Mortgage fees There maybe a setup fee for mortgages. This varies between banks, speak to your mortgage broker about negotiating on your behalf.
Home & contents insurance This will vary for each property.
Moving company $1,000+ (if you are using one)
Phone, power, gas, Sky TV Often companies charge to turn off/turn on/install/move these things so check with your provider. Also check your current provider is able to keep supplying.
Carpet cleaning $250+ Often when moving from a rental you are expected to get the carpet cleaned before vacating.
*These figures are an approximation only. Please conduct your own enquiries.
Once your offer has been accepted
Now that you have found your dream home and your offer has been accepted by the sellers, what happens next? Here are the basic steps:
A copy of the sale and purchase agreement will be sent directly to you and your lawyer.
Arrange to complete any conditions within the contract i.e. arrange for a valuation report and builder’s/engineer’s report if required.
Finalise your home loan arrangements through your mortgage broker/bank.
Satisfy any other conditions.
“Your local Council office is a great source of information. You can view rates and District Plans”
What your Lawyer will do during this time:
Check the LIM and check the District Plan (conditional on LIM)
Check the Certificate of Title
Check that all the conditions in your agreement are met
Check that Council rates and other costs are up to date.
Once all this has been completed and you and your lawyer are satisfied, your lawyer will advise the seller’s lawyer and the Real Estate Consultant that the agreement is now unconditional. This means you now need to pay your deposit to Bayleys.
Once your contract is unconditional
Once you get to this stage, neither you nor the Vendor can back out of the agreement. It is safe to say you can start planning the move into your new home. So what should you do now?
Make an appointment with your lawyer to sign the final documents.
Confirm the structure of your home loan if required, ask your mortgage broker about your accounts and any new automatic payments required.
You will be sent banking instructions for paying the deposit.
Do a pre-settlement inspection (usually completed three days before settlement). Let your lawyer know ASAP if there are any problems.
If renting, advise your landlord (generally you need to give 28 days notice in writing. Please check your tenancy agreement).
Book a moving truck/company if you are planning on using one and look into insurance of your contents during the move.
Start working through our checklists on the following pages.
Settlement day
On settlement day your lawyer will need to receive the loan funds from you and/or your lender. When those funds are transferred to the Vendor’s lawyer they will authorise the release of the keys for the property and the agreement is now officially settled.
Be aware that there are no set times for when you can move into your home on settlement day as it all depends on the transaction above being completed.
Often this will take place around midday but can sometimes take until the close of business i.e. 5pm.
Generally, your lawyer or the Real Estate Agent will contact you when the keys are available.
Where possible it may be beneficial to arrange moving day for the day after settlement. This gives the Vendor time to move from the property. You don’t want a clash of moving men! This will make your move into the home smoother and less stressful.
