Why You Must Speak To A Manukau Property Lawyer Before Making An Offer To Purchase
For most people, buying a home is the biggest and most important purchase they will ever make. This is because it is not just a house but also a valuable asset that you are buying. Further, the purchase process and the subsequent documentation is strictly governed by property law. Unfortunately, many home buyers, especially first-time buyers, are not aware of all the intricacies involved in property law. Therefore, people that are thinking of buying a home are strongly advised consult a Manukau property lawyer before they begin viewing houses.
Real Estate Agents
It is highly likely that buyers will be working through a real estate agent to view the property and negotiate the price. But it is essential to remember that the agent is working for the seller, not the buyer. While a real estate agent will have some experience and a limited knowledge of the law with regards to the property, they cannot give the buyer advice. They can answer generic questions, but they aren’t able to give you definitive answers. It is therefore highly recommended to speak to a Manukau property lawyer before committing to an offer to purchase.
Three of the most important aspects of the sales transaction that you should discuss with your lawyer include:
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The Commitment
When you make a formal offer to purchase a property, you will most often be asked to enter into a contract. This contract generally used by law firms for house purchases in Manukau is the Auckland District Law Society Sale and Purchase Agreement. However, buyers can add some clauses but recent changes mean that the old finance clauses people used as a way out of the purchase, are no longer possible. Now, people have to have a good reason why they cannot obtain finance.
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Vague Or Unclear Terms And Phrases
If there is any wording in the contract or purchase agreement that are vague or unclear, you need to discuss these with a property lawyer. Your lawyer will help you understand these clauses in the contracts and may also reword them so that they are more clearly defined.
This type of problem commonly exists in standard purchase agreements that are provided by real estate brokers. The standard contract is meant to cover all aspects of the sales transaction, but a buyer needs to have the contract read through by a qualified lawyer to ensure they are not signing to any unreasonable obligations. It is recommended to avoid standard purchase agreements and rather have a contract drawn up that addresses the specific purchase.
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Other Documents and Actions
The purchase agreement is the most important document involved in selling and buying a property. It details all the prices, rights, responsibilities and obligations of both buyer and seller.
In addition, the Title Deed and physical details of the property must be included in the documents. This will show the Lot Number, the land area and the area of the house.
The buyer should also ask for a Builder’s Report to be carried out by an approved building inspector. This will review the physical state of the property and an approximate valuation based on recent sales in the area.
If any alterations have been made to the property, then the buyer must get a copy of the Certificate of Consent approved by the local council. Without this, a mortgage company is unlikely to lend money to buy the property.
You will also need to arrange insurance for the building and probably life cover for the value of the mortgage. Again, your residential property lawyer in Manukau will advise what you need and by when.
If you are thinking of buying a property in Manukau, McVeagh Fleming is a long-standing law firm with lawyers experienced in real estate purchases in the area.