Conveyancing Notes

These notes have been prepared to assist clients who are selling or buying a property, to remind them of what we will tell them at our interview and to clarify points which may have been overlooked or misunderstood, or where an interview concentrates on other issues.

RATES

General rates are levied by each local Council for a period from 1^st July in each year to the 30^th June in the following year.However, Councils do not send out their demand until October or November in each year when the rates are struck.Most Councils confuse the issue by collecting rates in instalments - and the first one or two instalments are often based on the previous year.When acting for the Vendor (Seller) we will make the necessary adjustment so the Vendor will only pay rates to the date of settlement.

If rates have been paid in advance of settlement we will collect a refund from the Purchaser.If the rates are not paid to settlement we will give a credit to the Purchaser and they will then be liable for the balance of the years’ rates.

WATER RATES

In residential areas where there is a municipal water supply a special water meter reading will be ordered by us when acting for the Vendor for the date of settlement, and we will hold $250.00 from the proceeds of sale to meet the account.Any balance will be forwarded to you as soon as the account has been received and paid.

PROPERTY INSURANCE

It is now standard practice that the fire insurance is not apportioned between the Vendor and the Purchaser.For various reasons the Vendor (Seller) and Purchaser each have different requirements - and accordingly, the Vendor will cancel his insurance on settlement.The Purchaser is responsible for arranging his own insurance.

Provided we are given details of the Vendor’s insurance, we will, when acting for the Vendor, write to the Vendor’s insurance company (when settlement is completed) asking them to cancel the insurance as from settlement date (that is when we have monies in hand).We will ask that any refund of unexpired portion of the premium be forwarded direct to the Vendor at the new address.

TITLE

When acting for the Purchasers we will search the title of the property and send to you a copy for you to identify the size, location and shape of the property to the extent that information is disclosed on the title.Please confirm to us that we have obtained a search of the correct property.

Also, when acting for the Purchaser we will write to the Local Authority seeking information about the property.The response from Local Authorities varies - both in time of reply and the amount of information supplied.We will forward a copy of their report to you when it becomes available.Immediately prior to settlement we will obtain a guaranteed search - which will protect the settlement provided registration is completed in the Land Transfer Office within two months.

When acting for the Vendor (Seller) we will, also search the title to confirm ownership and obtain details of any Chargeholder (Mortgagees etc). 

CHATTELS INSURANCE

Not only will it be necessary to advise your insurance company when you move but you may also wish to arrange transit insurance to protect your chattels during the move.If your carrier does not arrange this we can assist.

TENANCIES

Where a property is sold with the Purchaser taking over the existing tenants we would be grateful if you could let us have full details of the tenancy as soon as possible - (e.g. tenants name, amount of rent, when rent paid to, bond etc).This will help us prepare a settlement statement and letters to the tenants.

ELECTRIC POWER

The Vendor should arrange direct with the Power Board (and Gas Company) for the meter to be read on the day of settlement.The Purchaser will be able to deal direct with the Power Board without interruption to the supply.

TELEPHONE

The Vendor should arrange for disconnection of the telephone and re-connection at his new address.We do not recommend holding the listing for the Purchaser.Delays in obtaining a new connection are minimal, but problems with unpaid accounts, tolls etc can cause real embarrassment.

KEYS

There are three ways in which the transfer of keys can be handled:

The first and most common method is for the Vendor to leave the keys with the Agents who will release them when authorised to do so by the Vendors Solicitor and settlement has taken place.

The second method is that the parties will make a private arrangement for the handing over of keys.

The third method is for the Vendor to hand one key to his Solicitor or Land Agent and once settlement has been effected will release the key to the Purchaser.The balance of the keys can be left in the house in an agreed place, out of sight and reach of strangers.

EQUIPMENT

Where there are appliances, swimming pool equipment and similar, it could be important for the Vendor and Purchaser to meet to ensure that instruction manuals and guarantees (if any) are made available to the Purchaser.

JOINT FAMILY HOME

Special registration under the Joint Family Homes Act 1964 is available to married couples who use their property exclusively or primarily as the residence.Many of the benefits of the registration are now covered by other legislation.We do recommend consideration of the benefits should be given where the property is registered in the name of one spouse only, or where one or both spouses are in business on their own account.The Act still provides some limited protection against loss of the family home where unsecured debt is involved.Joint Family Home registration is recommended where people are in business on their own account.Please feel free to discuss this topic with us.

NOTICES OF SALE

There is a legal requirement that the Local Body be advised of details of the sale - including the name and address of the new owners - that is part of the Lawyers duties in completing the sale.

TITLE DEEDS

These are usually held by or on behalf of the owner (if there is no mortgage secured against the title).

If there is one or more mortgage secured against the title the title deeds will be held by or on behalf of the First Mortgagee

When acting for the Purchaser we will (provided we also act for the First Mortgagee) report completion of the transaction by forwarding to the Purchaser a photocopy of the title showing details of the completed registration.

If we act for the Purchaser who has no borrowing (unless contrary instructions are received) we will hold the title in our Deeds Room for safekeeping at no charge.

YOUR WILL

The purchase or sale of property does suggest that your circumstances may have changed, and if that is so, it may be appropriate to review your will if you have not done so recently. We are happy to assist in the preparation of, or a review of your will, or to answer any questions which you may have on the subject.

FEES

Should there be any difficulty about payment please discuss this with us.