What To Do When You Find A Property

Finding your dream property is an exciting milestone. However, it’s crucial to take the right steps to protect yourself and ensure a smooth transaction. Let’s walk you through the key steps to take when a property catches your eye.

Seek Legal Advice for Your Sale and Purchase Agreement (SPA)

Before making an offer, it's essential to consult a solicitor to ensure your interests are protected. Review the sale and purchase agreement (SPA) carefully, ensuring it includes key clauses like ‘Finance Approval,’ ‘Solicitor Approval,’ or ‘Due Diligence.’ These will give you time to seek legal advice and secure financing before fully committing to the contract.

Finance Approval

Once the owner or developer signs your offer, submit the agreed SPA to your mortgage broker. They can assist in securing finance approval for the property. Your solicitor will also review the agreement to address any concerns or legal implications.

Property Valuation

Your lender may require a property valuation, which can be completed during the conditional period for existing properties or before settlement for new builds. Your mortgage broker will coordinate the valuation, although additional costs may apply.

Assistance with KiwiSaver and First Home Grant

Your solicitor will guide you through the KiwiSaver Withdrawal and First Home Grant application processes, ensuring that the necessary funds are transferred to the correct accounts on time.

Additional Costs to Consider

When purchasing a property, don’t forget to account for additional expenses. These may include building inspection reports, solicitor fees, valuations, LIMs/Titles, council rates, and insurance costs. Consider these factors as you plan your budget.

Conduct Due Diligence

During the due diligence phase, buyers conduct a thorough assessment of the property. This includes verifying its physical state, specifications, plans, legal standing, and market value. It’s also a good time to seek final lending approval from your bank. For more information, explore our guide to conducting due diligence.
When you find a property you love, it’s important to proceed with caution and thoroughness. Seek legal advice, secure finance approval, and conduct due diligence to minimize risks and ensure a smooth purchase. Small upfront investments in checks and reports can save you significant expenses down the road. By following these steps, you’ll be ready to confidently make your dream property a reality.
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