Lawyers? Who needs them!

Well, you do. You might try to sell a house without a real estate agent. But you should never try buying one without a lawyer. With intimate knowledge of all the traps you can fall into, these professionals are more than just the middlemen.

Basically, lawyers protect you by checking contracts, making you aware of your rights, crossing the 't's on the paperwork and ensuring the property title is in order. That's before, during and after you've made an offer.

1. Before you make an offer they…

• Organise valuations and reports,
• Check the sale and purchase agreement, auction or tender documents,
• Give you advice on negotiating the price,
• Make sure you're protected by the right conditions,
• Check the LIM report and title if you put in an unconditional tender, and
• Go over any legal issues.

2. When your offer is accepted they…

• Obtain a guaranteed title search that temporarily protects you against claims on the property,
• Run a check on ownership restrictions, consents, local authority plans and any other potential problems,
• Make sure the conditions in your agreement are met,
• Draft mortgage documents,
• Tell you if the property is insured (insurance is a condition of your loan),
• Check rates and other costs are paid up, and
• Arrange for payment of your loan and your share of the purchase price.

3. On settlement day they…

• Process all legal papers (title and transfer of ownership documents), and
• Pay the money to the seller's lawyer in exchange for the title, transfer papers and keys.

4. Then after settlement they…

• Send you a settlement statement,
• Register the new mortgage and transfer of title with the Land Information Office, and
• Give your lender the title, mortgage and certificate of insurance.

You can ask your lawyer to keep you in the loop during all these processes, via KeyTrack. It's the new online tracking system, which sends you text and email updates on your property deal as it happens.

By the iwantahome.co.nz Editor

Posted: 10 Oct 2008

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