INFORMATION FOR VENDOR

(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)

•  Note clause 8.2 and the 15 working days the purchaser has to approve the LIM

Vendors Undertakings

•  Carefully read all of clause 6.0. Contact us if you think any of the undertakings you are giving to the purchaser may affect you in any way

Possession

•  The possession date is also known as the Settlement date and it is important that both dates are recorded correctly on the agreement

•  Do not give the purchaser the key before the purchase money is received by your lawyer

•  Your real estate agent should not give the key to the purchaser until your lawyer has received the purchase money

•  The purchaser is entitled to inspect the property once before settlement upon reasonable notice being given (see clause 3.2)

•  Keys (see clause 3.4)

Rates

•  We collect a refund from the purchaser if your rates are paid in advance

•  We notify the Council of the change of ownership of your property

•  Any rate arrears must be cleared prior to or on settlement

Insurance

•  The property is at your risk until Settlement date (clause 4.1)

•  You should keep your home owners insurance cover current up to and including the Settlement date

•  After settlement you can cancel your home owners insurance

•  The purchasers arrange their own home owners insurance from Settlement date

Deposit

•  Your real estate agent is obliged by law to hold the deposit for 10 days, once it is received by them

•  It is the agent's responsibility to collect the deposit (clause 2.2)

•  You can cancel the contract, under certain circumstances, if the deposit is not paid (clause 2.3)

•  The deposit is refundable to the purchaser, if it was paid, and the contract does not become unconditional

•  The agent usually deducts their commission from the deposit and sends us the balance once the 10 day holding period is up

•  We hold the balance of the deposit in our Trust Account for you until all conditions are confirmed or until settlement

Late Settlement

•  Settlement should occur before 4.00 pm on the Settlement date

•  There are penalties if the purchaser is late with settlement (clauses 3.11 & 3.12)

•  If you, as the vendor, cannot give possession on the Settlement date there are penalties then imposed on you, as the vendor (clause 3.13)

Chattels

•  Vendors should not remove any of the chattels listed in Schedule 1 of the Agreement

•  See undertakings in clauses 6.2(1) & (2) and 6.3

Tenants

•  If the property is sold subject to tenancy (your tenant is still in the property) you must notify the tenant and transfer the bond to the purchaser (Tenancy Services have forms available)

•  You must also pay the purchaser for any rent paid by your tenant beyond the possession/Settlement date

•  Rent will be apportioned for any rent paid by your tenant beyond the Settlement date

Settlement

•  We collect the purchase money and rates adjustment on your behalf on the Settlement date from the purchasers lawyer

•  We simultaneously authorise the release of the key and title to the property to the purchasers lawyer

•  We then repay any mortgage debt on the property

•  If any funds remain we take our costs and deposit the net balance of the funds remaining into your nominated account or as otherwise instructed by you

First Property Legal is a division of Gawith Burridge