Further research & making the move

When you’ve found the home you want, it checks out structurally, and has all the features you need, the next steps are to check all the paperwork, get an agreement in writing to buy, arrange the finance and make the big move.

Getting a Land Information Memorandum

If you find a property you are interested in, apply for a Land Information Memorandum (LIM) from the council. It should give you information about:

Stormwater or sewage drains.
Historic Places Trust protection.
Special land features such as erosion or flooding.
Any rates owing on the land.
Permits, building consents or requisitions, and other certificates previously issued by the local council or Building Consent Authority.
Zoning and the use to which the land may be put and any conditions applying.
Any notices to the council by any statutory organisation that has the power to classify land or buildings for any purpose.
Any notices to the council given by any network utility operator under the Building Act.
Any other information that the council thinks relevant.

For more information about LIMs see consumer.org.nz. Note: you will need to be a member to access this information. See also Legal.

Building Code compliance

If you discover from the LIM or council files that some work has been done on the house without a building consent, (the original plans and drawings of any alterations may be available from the council for you to check against), you can ask the vendor to apply, from 31 March 2005, to the council for a certificate of acceptance.

The vendor is not bound to comply with your request (and the council may or may not decide to issue a certificate of acceptance) but risks losing the sale by not being able to demonstrate that the work that can be inspected is up to Building Code standard.

Dealing with real estate agents

When you are buying a house, the principle of buyer beware applies. It is your responsibility to check out the property and either find or discount defects.

The agent has no legal obligation to point out the defects of the property to you, but neither are they permitted to make misleading statements or give misleading impressions about the property. So ask lots of questions and make sure they get back to you with answers. If you believe you have been misled, you may have remedies under the Fair Trading Act.

There may also be a remedy under the Contractual Remedies Act 1979 for misrepresentation made by the agent that induced you to enter into the agreement to purchase. You would have to discuss this with a lawyer.

For information about dealing with real estate agents including fees, advertising, sale methods, and understanding the role of the agent, see consumer.org.nz. Note: you will need to be a member to access this information.

Sale and purchase agreement

When you decide to go ahead with a purchase you have to sign a sale and purchase agreement which, when signed by the vendor, becomes a binding contract. For more about what is usually found in a sale and purchase agreement see Buying a section.

Checking the title and conveyancing

It is essential to do a title search before you purchase any property to find out about the ownership of the property and whether there are any restrictions on the usage of the land, such as a fencing covenant, or building restrictions. See Certificate of title for more information about how to obtain a certificate of title and the different types of land ownership in New Zealand.

Getting a valuation

A valuation may give some guidance as to the market value of the property, although it may bear little relation to the purchase price, which is the price agreed on between a willing vendor and purchaser. However, your bank may ask to see a valuation if you are seeking a mortgage.

Rating Valuations are compiled at least once every three years under the Rating Valuations Act 1998, for the levying of local authority and regional council rates. They can also serve as a useful guide for potential purchasers.

You can have a private valuation done by a registered valuer. To find a registered valuer, look at the New Zealand Property Institute website. A registered valuer is one who has met the standards and requirements of the Valuers Registration Board (VRB), and has a current practising certificate from the VRB.

Another option is to seek a valuation from Quotable Value Ltd. Go to www.qv.co.nz or call 0800 164 444.

Arranging finance

Most people have to borrow to buy a new home. For information on mortgages see Money.

Most of the large banks also have helpful tips on their websites about buying houses.

Making the move

Before settlement, make sure you organise your house and contents insurance so that when you formally take possession, your new home is insured and your insurance company has your new address for contents insurance. See consumer.org.nz for information about house and contents insurance. Note: you will need to be a member to access this information.

When you’ve chosen the house, and settlement draws near, you need to consider the actual move. There are a number of options from packing and moving yourself, to going out and leaving the whole task for someone else to manage.

Consumer Guarantees Act 1993

This Act does not apply to the purchase of an existing house, but it covers the materials and services supplied in building a new house. It also covers house repairs and the service provided by tradespeople and the property inspectors. See Consumer Guarantees Act.

Miranda and her husband buy investment properties, and they offer this advice for purchasers:

Check the boundaries. “We don’t go to the extent of a survey but you can often find the white survey pegs. If not we take note of the fence lines and then compare the details to the site plan.”
Check the council files. “We once bought a property without checking and got caught with an un-permitted log fire. Thankfully this was easy to fix. We recently looked at a three-bedroom home which, on checking the council files, showed it should have been a two-bedroom townhouse with a garage. The garage was converted into a bedroom but never had a permit.”
Whether to get a LIM. “It is important to check the council files as well.”
If the house is on piles, check under the house. “You can see if the house has moved off the piles or if there is any other damage like rot.”
Do the ‘bathroom test’. “To me this is one of the most important rooms in the house and the most inconvenient if it needs to be renovated. I look for good ventilation, an extractor fan, signs of mould on the ceiling, walls and skirting boards, whether the floor coverings have lifted, and any water damage to the shelves in the vanity.”
Do the ‘kitchen test’. “I look for a kitchen that is well ventilated and that has a good working triangle.”
Check the hot water cylinder for year of make, which gives an idea of the age of the house or if the plumbing has been redone.
Check for cracks in the ceiling which may also indicate the house has moved off its piles.
Also check both the interior and exterior for any sign of mould or dampness which could indicate a leaky roof or window frames, etc.
If you’re not happy with anything, it should affect the price you offer.