The Low Down on Property Reports
Before buying your first home, looking into investment property, or taking part in an auction, getting property reports will help you ensure you know everything you need to know about your potential new home or investment.
There are two types of Property Reports that we recommend you get for any property you are seriously considering purchasing.
When considering a property, it’s advisable to arrange a building report. There are usually different types of reporting options, from a basic building report to a full structural report. The full structural report is the most expensive and detailed report, but is strongly recommended for older properties.
The building inspector will check things like the condition of the roof, plumbing, drainage systems, electrical wiring, fences, paving, driveway, insulation as well as checking for cracks, water damage and mould. If they note any need for maintenance, you may be able to negotiate costs with the vendor.
Our Conveyancing Report
If you are happy with the outcome of the building report the next step is for your Lawyer to prepare a Conveyancing Report. Our property lawyers will review a copy of relevant documents from the seller’s real estate agent. This can include a copy of the Title, Land Information Memorandum (LIM) and the proposed agreement for sale and purchase.
The Title is a document that clarifies who has legal ownership of the property – and is important to confirm whether the seller has the right to sell. Meanwhile, the Land Information Memorandum report comes from the local council, which describes the title of the land, lists all building permits and consents and sets out things like flood risks.
If the house is up for auction, we will also request a copy of the Auction Agreement, to ensure there are no issues with the contract or issues such as conflicts with an offer of financing you may have.
We carefully review all of this documentation to ensure there are no problems, and then send you a full report. This will summarise the information we’ve obtained, and alert you to any points you should consider.
A good property report is your essential tool for telling you everything you need to know before investing in property, as well as catching any hidden liabilities. There can be a lot of information to consider, but our team will get all the necessary documents and summarise what you need to know in an easy to read report.
If you’re a first time home buyer, you should also check out our checklist [link to checklist for first home buyers article] to help prepare for buying your first home.
We provide fixed price property conveyancing services across New Zealand. If you are considering purchasing a property give us a call 0800 773 377 or send us a message.