Things you need to know when you are buying or selling property

Retrieved from Stuff.co. nz, written by Kevin Lampen, Chief of Real Estate Authority

Metro NZ Property Management is licensed under REAA 2008. We can sell real estate and help people to buy. We can also help investors to manage property. We always present and process deal in a fair way that makes vendor and buyer happy. It’s a big decision to either sell or buy a property. There are many things you need to be aware before you signing up with an Agency. At Metro NZ Property Management, we always advise our client to take the Agency Agreement, or Sales and Purchase Agreement to a third party adviser or solicitor before making your decision. If you are signing up with other agents, you should do the same. If agent does not give you a chance to seek for advises, you might need to think more on this.

We will be your trusted agent if you choose us. A happy client will always be our returning client that’s the philosophy that we follow. We also believe, we should not only serve our clients, we should also educate clients and grow together with our client.

There are many things you need to be aware. Here’s an article that written by Kevin Lampen, who is the chief executive of the real estate authority (REA), the independent government agency that regulates the New Zealand real estate industry about building report condition on the Sales and Purchase Agreement. It is valuable to read if you haven’t had any experience before about Real Estate Transactions. Original Article is from Stuff.co.nz.

”Buying a home can feel like a game of chance – there are so many different moving parts and often you might be left wondering “what if?” or “if only…” It might seem like a hassle, but we strongly recommend that you don’t leave anything to chance when you’re considering such a big financial transaction. That includes building reports.

These days for sellers to prepare an information pack to present to potential buyers. They’re aware that researching a property takes time and money, and they don’t want this to be a barrier to a successful sale.

They believe that providing information like a LIM (a Land Information Memorandum from the local council) and a building inspection report can help busy people get an offer on the table.

This is all well and good, but there are some fishhooks to be aware of in these situations.

If, for example, a real estate agent or seller gives you a LIM for the property, check carefully when it was prepared. A LIM is a summary of all the current property information held by the different departments at a council at the time. It will contain details of council consents for any work done, how much the rates are and information on any geographic hazards that might have an impact on the property, such as subsidence. Bear in mind that this information can be reasonably general – the LIM for most houses in Wellington will say that they’re located in a high wind area. Now, if the LIM is dated a couple of weeks ago, it’s safe to assume it’s reasonably up to date. If it’s dated a year ago, it’s a good idea to make further inquiries.

Getting a LIM costs money in most areas (prices vary from council to council). You can also ask to see the property file held by the council, which holds other information about a property, like a site map and original house plans.

Building reports are a bit trickier. Using a building report provided by the seller (or the real estate agent working for them) may seem like an easy option. However, if you buy the property and then find problems with it that cost a significant amount to fix, you’re not protected by the building report because the inspector’s contract is with the seller, not you. The Real Estate Authority (REA) recommends using an accredited property inspector who complies with the New Zealand building inspection standard 4306:2005. Their written report will identify any current defects as well as highlight any urgent and long-term maintenance required. Look for someone who has a good level of indemnity insurance, as this will protect you if you buy the property and then find you need to fix something that wasn’t in the report.

Building inspections do come at a cost, but we think it’s worth it to be sure that you’re fully aware of what you’re signing up for. Depending on the age of the house you’re looking at, don’t necessarily expect a thin report saying there are no issues. Many wooden houses in New Zealand are over 50 years old and there will be things the inspector needs to point out. Make sure you understand what are normal age-related matters (that may not be major issues), compared to significant repairs needed in the short term to fix a problem. The report you receive should separate these things out – if it doesn’t, then ask your inspector about the difference.

Receiving a detailed report with lots of content doesn’t necessarily mean you should walk away from the property. Look at it as providing the opportunity to know what you’re buying. Doing this before you make an offer means you are fully aware of what the property may need to have done to it and your offer figure can reflect that. However, if you don’t feel comfortable paying for a building report before you make an offer, you can make a property inspection a condition of your offer. Like most things in life, buying a property will go more smoothly if you put the work in.

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