When you hear the phrase: ‘you should talk to a lawyer’ the hair on the back of your neck stands up.
Don’t lose hope.
They’re an essential tool to leverage when purchasing or selling a property.
Here’s a framework for the initial stage:
1. If you’re the seller:
· Ask a lawyer what the best-selling methods are, the agent options, a good price range and if to needs due diligence. Agent options might include a multiple listings approach where all the agents have a crack or a sole agent agreement where you give exclusive rights. If you give the exclusive rights to a real estate agent, be mindful that sometimes even when you cancel, it still defaults to a general agreement that you need to cancel too if you’re over that agency.
· A few selling methods you might use are:
o Negotiation-Chill & Grill. Exclude the price wait for offers to come to you and negotiate.
o Tender-Now or Never. Set a deadline and pick the buyer you like best.
o Auction-Deal or no deal. Once the reserve price is reached the property goes to the highest bidder.
o Advertised price-Fire & Forget. Market the price without an end date.
o Deadline sale-Inline or out of time. Advertisement with an end date.
· If the property isn’t your main home then the tax implications become very important so consult an accountant or a qualified lawyer as well as use the IRD’s property tax decision tool as a gage.
· If you’re selling a Unit title, like an apartment for example, ask a lawyer if you need to make any statutory disclosures to the buyer. Also, a good rule of thumb is to make sure you complete a pre-contract disclosure statement before marketing the property as you need to do this before signing the sale and purchase agreement anyways. Here’s an example of what you should include.
2. If you’re the buyer:
· It’s basically the same but in reverse. Check if you’re entitled to any statuary disclosures if it’s a unit title and ask for some guidance on price.
· If you’re not a permanent New Zealand resident, citizen or from Australia/Singapore, then make sure to get consent from the Overseas Investment Office before you sign the agreement.
· The real art is choosing the right property so if you want a more in depth summary then check out Settled or the Law Society’s property check list
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