Buying a house is exciting, but there is a lot happening behind the scenes between finding the right property and finally getting the keys.
One of the people helping you through that process is your conveyancer.
A conveyancer handles the legal aspects of transferring a property from one owner to another. But good conveyancing involves more than completing documents. Your conveyancer helps you understand what you are agreeing to, identifies potential risks and makes sure the necessary legal steps are completed correctly.
At Conveyancing Plus, property transactions are what we deal with every day. Here is what a conveyancer typically does when you are buying a house in New Zealand.
Reviewing the Sale and Purchase Agreement
Ideally, your conveyancer should review the Sale and Purchase Agreement before you sign it.
The agreement sets out important details including the purchase price, deposit, settlement date and any conditions attached to your offer.
Those conditions could relate to finance, a LIM report, building inspection, title review or other due diligence.
Your conveyancer can explain what the agreement means, identify anything requiring closer attention and discuss whether the proposed conditions give you appropriate protection.
Once an agreement has been signed by both parties, it is legally binding subject to the conditions it contains. That is why getting advice before signing can be so valuable.
Checking the Property Title
The title contains important legal information about the property you are considering buying.
Your conveyancer will review the title and look for matters that could affect your ownership or intended use of the property.
These may include:
Easements
Covenants
Rights of way
Restrictions on the property
Existing interests registered against the title
Ownership details
Something appearing on a title does not automatically mean you should not buy the property. The important thing is understanding what it means before you commit.
Looking for the Fish Hooks
Not every issue with a property is immediately obvious.
There may be concerns involving the title, building work, access, finance, council information or conditions within the agreement.
Your conveyancer's role is to look closely at the information available and bring important issues to your attention.
At Conveyancing Plus, we call these the “fish hooks”.
No professional can remove every risk involved in buying property. What we can do is identify matters that deserve further investigation, explain what they could mean and help you make a more informed decision.
Reviewing the LIM and Other Property Information
A Land Information Memorandum, commonly called a LIM, contains information held by the local council about a property.
Depending on your agreement and circumstances, your conveyancer may help you understand legal issues arising from the LIM or other property information.
If something raises a concern, further investigation may be required before your relevant condition expires.
This is another reason it is important to give yourself enough time for due diligence rather than leaving everything until the last minute.
Managing the Conditions in Your Agreement
A property purchase may be conditional on requirements such as obtaining finance, approving a LIM or completing other due diligence.
Each condition will normally have a deadline.
Your conveyancer helps manage the legal aspects of these conditions and keeps track of the important dates.
If a problem arises, the wording of your agreement can affect the options available to you. Speak with your conveyancer before confirming that a condition has been satisfied.
Working With Your Bank or Mortgage Adviser
If you are borrowing money to purchase the property, there will also be mortgage documents and lender requirements to complete.
Your conveyancer works with your bank and, where applicable, your mortgage adviser to help bring the legal and financial parts of the transaction together.
This may include receiving the bank's loan instructions, explaining the relevant documents and registering the mortgage against the property.
Helping With a KiwiSaver First-Home Withdrawal
Eligible first-home buyers may be able to use money from KiwiSaver towards their property purchase.
There are documents and deadlines involved, so it is important to start the process early.
Your conveyancer can assist with the required legal documentation and help ensure the funds are available when needed for the transaction.
Preparing for Settlement
Once the agreement is unconditional, attention turns towards settlement.
Your conveyancer prepares the necessary legal documents, works with your lender and the seller's conveyancer, and arranges for the transfer of ownership.
There may also be adjustments for matters such as council rates.
Before settlement, you will usually have documents to sign and other requirements to complete. Your conveyancer should make sure you understand what is required and when.
What Happens on Settlement Day?
Settlement is when the financial and legal transfer of the property is completed.
Your conveyancer coordinates with the seller's conveyancer and your lender to complete the transaction.
Once settlement has been confirmed, the property can be transferred into your name and you can normally arrange to collect the keys through the real estate agent.
It is a significant moment – and the culmination of a considerable amount of work happening behind the scenes.
When Should You Contact a Conveyancer?
Earlier than many buyers realise.
Ideally, speak with your conveyancer before signing a Sale and Purchase Agreement.
That gives you the opportunity to have the agreement reviewed and ask questions before you become legally committed to its terms.
If you have already signed a conditional agreement, contact your conveyancer as soon as possible so they can review it, check the relevant deadlines and explain what needs to happen next.
Buying a Property?
Conveyancing Plus helps property buyers understand the process, recognise potential fish hooks and make informed decisions about their purchase.
With offices in Waiuku and Pukekohe, we support buyers throughout Franklin, South Auckland and beyond.
Learn more about Buying a Property →
Or talk to Conveyancing Plus before you sign an agreement or take your next step.
