So you are looking at selling your property. Below are some things to consider.
Method of sale
You can sell privately or use a Real Estate Agent. A good agent can make all the difference in getting a good result. If you decide to sell privately we recommend you prepare a sale and purchase agreement, obtain a copy of the title to your property and order a LIM from Council before you list the property for sale. If the LIM shows that there is something that needs correcting you will be able to attend to this prior to listing or a clause can be included in the agreement to deal with it.
Legal advice
It’s a good idea to meet with your lawyer before selling your property. They can draw up the agreement with the conditions you want. For example being able to accept a higher offer before the contract becomes unconditional.
Warranties
The standard sale agreement contains warranties that you give. These include:
• not giving a consent or waiver under the Resource Management Act that relates to the property. For example: consenting to a neighbouring development;
• that you obtained a building consent for work you carried out on the property and a code compliance certificate (if required);
• the chattels in the property will be in the same state on settlement as they were when the agreement was signed.
GST
If you are registered for GST get advice before signing the agreement on your GST liability, if any.
Tenants
If the property is tenanted decide whether you are selling the property “tenanted” or with “vacant possession”. If vacant, 42 days notice must be given to the tenant to vacate. If the tenancy is a fixed term one then the property will be sold with the existing tenant.
Conditions
If the purchaser wants you to do something to the property prior to settlement ensure that you can actually do it before you agree to it.
Mortgage
If there is a mortgage registered over your property you need to get your Bank’s consent to the sale. Full repayment of your loan may be required. If you do not want to repay the Bank in full then come to an arrangement with the Bank prior to signing the sale Agreement.
Rates, Insurance, Keys, Rubbish
Keep the property insured until you know the Purchaser has paid. You must pay Council rates in full, hand over a key for every door that has a lock and get rid of all your chattels and rubbish.
