Buying Your First Home - The Role of A Property Lawyer

New Zealanders like to own their own homes and, for most of us, it’ll be our biggest investment. Buying for the first time, you will want the experience to be positive and rewarding.

The Role of a Lawyer

In this article we take a short look at what your lawyer does in the background to assist you in completing that
all-important purchase.  The role of a lawyer in conveyancing matters is largely misunderstood by the public and it is our hope that this article will dispel a few myths.

One of the principal roles of your lawyer in any property transaction is to act as a point of contact for various important parties in the transaction. In particular your lawyer will likely liaise with your mortgage advisor, bank or lender extensively during the due diligence phase. As a first home buyer your lawyer will also manage with you the process of dealing with your Kiwi Saver provider and if you are eligible, Housing New Zealand in
relation to a home start grant.

And it doesn’t end there. Your lawyer will also be the principal point of contact for the real estate agent. 
In the event that any issues arise during your due diligence investigation of any property, you can also expect your lawyer to be the enforcer of your rights under the contract, a negotiator on your behalf and a
key advisor in the whole process.

Behind the scenes, your lawyer will receive and collate all of the relevant information relating to the property you are buying. This might include the land information memorandum from the local council, the building
inspection report from your building inspector, the details regarding the earthquake claims and the scope of works, details of any earthquake repairs completed, details relating to insurance on the property for clients in
Christchurch Region,  and all matters relating to title and interests affecting the title. A fundamental part of your lawyer’s role is to keep you informed of the key dates and deadlines which are to be met during the course of your contract. In the event that a deadline cannot be met your lawyer will be the negotiator on your behalf to secure additional time to fulfil any conditions.

Another key role of your lawyer will be to advise you on the structure of your property ownership which will almost always depend on the nature of the relationship between the purchasers (if more than one) and might
on occasion involve advice around ownership structures such as companies, partnerships or family trusts and in some circumstances, advice around relationship property considerations.

Once your lawyer has collated all the information relating to your purchase, your lawyer will advise you on all matters relating to or arising out of an investigation of the land information memorandum, the title
to the land any insurance claims and of course the building inspection report. If necessary your lawyer will play a key role in assisting you to exit the agreement. Furthermore, should issues arise following your final inspection then your lawyer will be a key negotiator in managing any remedial work required of the vendor or on occasion negotiating the retention of funds pending any repairs being affected or on occasions, a reduction in the price if appropriate.

One of the vital roles of your lawyer in completing your purchase is to see to it that all funds required are gathered into the lawyer’s trust account in a timely fashion so that settlement is completed on time. This will include communicating with your lender and ensuring that all of its requirements are met so that loan
monies are available on settlement day. Your lawyer will ensure that any Kiwi Saver withdrawal, home start grant (if applicable) or personal contributions of yours are also received in time for settlement.

Your lawyer will prepare and execute the electronic documents authorised by you which see the legal title to the property transferred into your name and any new mortgage registered in favour of your lender. Following the completion of settlement your lawyer will attend to registration of the property into your names and thereafter, report to you and the lender with an up-to-date copy of the certificate of title and the registered mortgage.

Remember, get your lawyer’s advice before signing anything. Documents can be emailed or faxed to your lawyer when there is any urgency. When you go to see your lawyer, take a list of the questions you want to ask.
The final decision in all matters will be yours. Make sure you have enough information to make the right decision.