A: Sellers of a unit title property will need to comply with disclosure obligations outlined in the Unit Titles Act 2010. They will be obliged to provide buyers with up to three separate disclosure statements. These include a pre-contract disclosure, pre-settlement disclosure, and an additional disclosure.
Q: What can I expect to see in Lochore’s real estate agency agreement?
A: The REAA Act 2008 requires that we give you a copy of the New Zealand Residential Property Agency Agreement Guide before you sign the authority and you also need to sign the appropriate consent forms. An agency agreement is a contract between you and a real estate company – it sets out the terms and conditions, e.g., putting a sign on your property, advertising, arranging inspections, receiving a deposit on your behalf, and deducting agent’s commission from the deposit when the offer becomes unconditional. You’ll be asked about any property alterations, reasons for selling, your time frame if there are any requisitions or notices from the local council (availability of Lim Report, Building Report or Code of Compliance). We’ll also require your address, legal description of the property and contact details, as well as a list of chattels that will remain with the house. You’ll need to be honest and ensure that all details you provide are accurate and factual. If you knowingly mislead you may leave yourself open to legal action.
Q: For what length of time is a real estate agency agreement binding?
A: A maximum of 90 days from the signature of contract.
Q: Should my real estate agent be licensed?
A: Yes, salespeople should hold a current licence – ask for proof if necessary.
Q: Should my real estate salesperson disclose any rebates, discounts or commissions they receive, e.g., from newspapers?
A: The salesperson must disclose any of the above to you, but they are not required by law to share these discounts. If there are any you may wish to negotiate with your salesperson.
Q: What should I expect from my real estate salesperson?
A: Good, clear, regular communication. This includes a phone call or text after every viewing, plus a call within one hour of each open home. It’s up to you to establish at the beginning if you’d prefer to be contacted by phone, text, email, etc.
Q: Should I accept the first offer from a prospective buyer?
A: It is your house and you are under no obligation to accept the first offer. However, we must pass on to you any offers and cannot turn down any on your behalf. One of our jobs is to educate the buyer to submit a fair offer that reflects the market conditions on the day.
Q: What is a sale and purchase agreement?
A: The salesperson will bring the offer in writing in a Sale & Purchase Agreement (three copies). The REAA requires us to give you another booklet, the New Zealand Residential Property Sale & Purchase Agreements Guide to read before signing the agreement. If you are planning to sign it, we recommend that you obtain advice from your solicitor first.
Q: Is the purchaser of my house allowed to inspect the house before the settlement date?
A: Yes, purchasers are allowed one final inspection – usually one to two days before settlement.
Q: What happens on settlement day?
A: The vendor’s and purchaser’s solicitors will be ready with settlement statements. Once the purchaser’s solicitor has transferred the monies owing to the vendors to the vendor’s account, settlement can take place. A confirmation of this is sent to the real estate office. Only then can we release the house keys to the new owners.