In addition to pre-contract disclosure statements, the Unit Titles Act 2010 (Act) contains further requirements as to disclosure regarding any given unit. This disclosure comes in the form of a pre-settlement disclosure statement and an additional disclosure statement. Pre-settlement disclosure statement In the sale and purchase of a unit, section 147 of the Act states… Continue reading Unit Titles – Pre-Settlement Disclosure and Additional Disclosure Statements
Property & Conveyancing
Due Diligence When Buying a Unit Title
Conducting due diligence on a unit title is different to the due diligence that is carried out on other estates of property. This is because of the statutory disclosure obligations under the Unit Titles Act 2010 (Act) and the additional considerations that purchasers should be aware of when purchasing unit titles. Statutory Disclosure The Act… Continue reading Due Diligence When Buying a Unit Title
Transferring Trust Property to New and Continuing Trustees
When a new trustee of a trust is appointed, or an existing trustee retires or is removed, the trust’s property must be transferred from the existing trustee(s) to the continuing and new trustee(s). In other words, the trust property must be divested from the old trustee and vested in the new trustee(s). Nature of Trust… Continue reading Transferring Trust Property to New and Continuing Trustees
KiwiSaver First Home Grants
If you are a first-time home buyer, you may be eligible to receive a First Home Grant from Kainga Ora to put towards the purchase of your home. These grants of up to $10,000 are provided by the New Zealand Government (through Kāinga Ora) and can assist you by topping up your deposit. Who can… Continue reading KiwiSaver First Home Grants
A Due Diligence Condition is the Best Condition (for a Buyer)
The ADLS/REINZ agreement for sale and purchase of real estate – the form of agreement used in most conveyancing transactions in New Zealand – allows buyers to make the contract subject to a range of standard conditions, including finance, building report, LIM, and toxicology report. These are helpfully included in the Conditions box on the… Continue reading A Due Diligence Condition is the Best Condition (for a Buyer)
Guaranteeing the Obligations of a Third Party
When a lender agrees to advance funds to a borrower, a landlord agrees to let commercial premises to a tenant, or a supplier agrees to provide goods on credit, the lender/landlord/supplier (the creditor) might ask for the obligations under the relevant contract to be guaranteed by a third party (the guarantor) as a condition of… Continue reading Guaranteeing the Obligations of a Third Party
Unit Titles and the Stratum Estate
If you are looking to buy an apartment, townhouse, flat, or another dwelling in a shared housing complex, there is a good chance the title to the property will be structured as a stratum estate. This is a special type of estate in land created under and governed by the Unit Titles Act 2010 (Act).… Continue reading Unit Titles and the Stratum Estate
What Is a Mortgage?
When banks, second tier lenders, and other financial institutions agree to lend money to help finance a real estate purchase, it will usually be on the condition that the borrower’s obligations under the loan (or the obligations of a guarantor) will be secured by a mortgage over the land being purchased. Most people do not… Continue reading What Is a Mortgage?
Nominating Someone Else to Complete a Property Purchase
A person who has entered into an agreement to purchase property might want to nominate a third party or parties, known as the nominee(s), to complete the transaction. This might occur, for example, because the purchaser would like the trustee(s) of a trust, or themselves and another joint buyer, to take title, perhaps in circumstances… Continue reading Nominating Someone Else to Complete a Property Purchase
Joint Tenancy vs Tenancy in Common
If you want to own land with another person, you will have option of holding the legal title as either joint tenants or tenants in common. So, what is the difference? In a joint tenancy, the registered proprietors have shared title to the whole property. They own 100% of the property together. This means that… Continue reading Joint Tenancy vs Tenancy in Common