INFORMATION FOR PURCHASER

(Clause numbers refer to the ADLS Agreement for Sale & Purchase 8 th Edition 2006)

First Property Legal is a division of Gawith Burridge, Solicitors, Masterton

Land Information Memorandum (LIM)

•  We recommend you obtain a LIM report (see clause 8.2 of the Agreement)

•  A LIM report is available from the District Council and shows whether any requisitions are issued against the property and any other information the Council has about the property

•  The owner warrants under Clause 6 of the contract that no requisitions have been received from the District Council but the LIM report is the only way of confirming this

•  An urgent LIM report costs $170 and is available within 5 working days (Masterton District Council)

•  A standard LIM report costs $140.00 and is available within 10 working days (Masterton District Council)

•  The fees are different for different Councils

Penalty Interest for Late Settlement

•  The contract provides that if your purchase is not settled by 4.00 pm on the day of settlement the vendor can ask for penalty interest at the rate set out in the contract

•  If settlement is due to take place on a Friday this can mean penalty will be payable for Friday, Saturday and Sunday

•  Late settlement can occur when the Bank providing the mortgage finance does not credit our trust account with the funds early enough for us to complete settlement before 4 pm

•  Late settlement can also occur where the purchase is part of a chain of transactions and we do not receive funds to complete a purchase in time to complete settlement by 4 pm

•  To avoid at least one of these problems we recommend that we uplift your mortgage funds on the day prior to settlement

•  Although uplifting mortgage funds on the day prior to settlement will involve you paying one day's extra interest it is preferable to the possibility of incurring 3 days penalty interest

•  Where a late settlement occurs due to circumstances beyond our control you will be liable for any penalties that may result from the late settlement

Inspection of Property Prior to Settlement

•  Clause 3.2 of the contract provides that you have the right to inspect the property once prior to settlement date

•  Notice of your wish to inspect the property must be given in writing to the vendor a reasonable time prior to settlement date

•  Inspection is normally carried out either late on the afternoon of the day prior to settlement or early on the morning of settlement day accompanied by the real estate agent

•  Please confirm if you wish to inspect the property prior to settlement

Joint Tenants/Tenants in Common

•  In some circumstances where two or more people are purchasing we recommend couples acquire title to the new property as tenants in common a detailed information sheet is available from the office

•  Co-owning purchasers can acquire title either as joint owners or as tenants in common

•  Joint ownership means that when one joint owner dies the property passes automatically to the survivor

•  Tenants in common means that if one of two tenants in common dies the share of that owner passes in accordance with the provisions of the owner's will

Property Agreements

•  In certain circumstances we recommend that you have a Property Agreement

•  This is a form of agreement which sets out your respective rights and obligations if your relationship should cease

•  The Property Agreement clearly sets out what is to happen to the property following a separation

Vendors Undertakings - see clause 6 of the Agreement

Insurance

•  It is your responsibility to arrange insurance for the building before the possession date/Settlement date - we recommend replacement cover

•  Until settlement the risk remains with the vendor

Rates

•  The vendors lawyer notifies the Council of the change of ownership

•  Usually the vendor has paid rates in advance of the settlement date. We will reimburse the vendor on your behalf for your proportion of rates paid in advance

Settlement

•  Any funds we collect from you to pay the purchase price must be by way of bank cheque payable to Gawith Burridge Trust Account or by electronic payment of cleared funds to the Gawith Burridge Trust Account from your bank

•  We collect the purchase funds from you and/or your bank and settle the transaction by paying the vendors lawyer and, in some cases, collecting the key. We then register the change of ownership in the Land Titles Office

If you need to discuss any of these matters with us before making a decision please do so

First Property Legal is a division of Gawith Burridge