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The Buyers Guide to Buying by Negotiation With First National Real Estate

Wednesday 3 October 2018, 11:51PM

By Beckie Wright

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We recently wrote about First National Real Estate’s Buyer’s Guide to Buying at Auctions, and this month they explain about buying by negotiation, starting with making an offer. There are two types of offers, conditional and unconditional. Conditional means having one or more conditions to be met within a specified period (e.g. subject to a building inspection)Unconditional means no conditions.

All contracts relating to land must be in writing, which means that any offers made on a property will be drawn up by the salesperson on the Real Estate Institute Sale and Purchase agreement. This offer needs to be signed by the customer and is then presented to the client for their consideration. If the offer is at an acceptable level, the client will sign as acceptance and the sale is concluded.
If it is not at an acceptable level, the offer may be counter-signed by the client and sent back to the customer for their consideration. This may happen several times until the price and conditions are satisfactory to both parties and a sale is concluded.

At this point, the Sale and Purchase Agreement is dated, and the agreements are forwarded to both the clients and the customers solicitors. It is normal practice for the salesperson to give copies of the completed agreement to both the client and the customer so that all parties have documentation detailing the possession date, the conditions and of what chattels go with the property. 

The deposit must be paid immediately the agreement goes unconditional and is usually payable to the real estate agent’s Trust Account or in accordance with whatever is stated on the contract. A deposit of 10% is usually required. By law the agent is required to hold the deposit in their Trust Account for 10 working days after which time they forward the deposit to the vendor’s solicitor, less the commission. The conclusion of the settlement is carried out between your solicitor and the sellers solicitor. Once an agreement is unconditional, the deposit is not refundable. 

The process by which the settlement/possession date takes place is commonly conducted through lawyers and involves the payment of the purchase price (less any deposit already paid) in exchange for which the purchaser will be electronically registered as owner on the Certificate of Title to the property. This electronic registration will also ensure that all previous charges over the property are released.

Keys to the property are usually handed over to the purchaser by the salesperson, immediately following settlement of funds to the vendor’s solicitor. For more information on houses for sale Whangamata, houses for sale Coromandel and rural real estate please go to http://www.corofirstnat.co.nz .