Whether you’re buying your first home or selling up to move on, the legal process can feel overwhelming. The good news: it’s very manageable once you understand what’s happening and why. Here’s a straightforward rundown of what to expect.
What is conveyancing?
Conveyancing is simply the legal work involved in transferring ownership of a property from one person to another. A lawyer handles this on your behalf — checking the title, reviewing the sale and purchase agreement, dealing with the bank, and making sure the money and keys change hands correctly on settlement day. In New Zealand, you don’t legally have to use a lawyer for a property transaction — but it’s strongly advised. The risks of getting it wrong are significant, and the cost of a lawyer is small compared to the value of the property involved.
Buying a home — step by step
- Get your finances sorted first. Talk to a mortgage broker or your bank before you start making offers. Knowing your budget saves a lot of heartache.
- Find a property and make an offer. This usually means signing a sale and purchase agreement — a legally binding contract. Talk to your lawyer before you sign if you can.
- Include the right conditions. Most agreements include conditions like getting finance approved, or getting a building inspection done. These give you a way out if something goes wrong before the deal becomes unconditional.
- Your lawyer checks the title. Once an offer is accepted, your lawyer looks into the legal ownership of the property, checks for any issues (like easements, caveats, or covenants), and explains what they mean for you.
- Go unconditional. Once your conditions are satisfied, the deal becomes unconditional — you’re committed. Settlement is typically a few weeks away.
- Settlement day. Your lawyer coordinates with the seller’s lawyer and your bank to transfer the money and register the title in your name. You get the keys.
First home buyers — important
If this is your first home, you may be eligible for KiwiSaver HomeStart grants or be able to withdraw your KiwiSaver savings. Your lawyer can help you understand what’s available and make sure it’s applied correctly at settlement.
Selling a home — what to expect
Selling is generally simpler than buying, but there are still important steps to get right.
- Appoint a real estate agent (or sell privately). Either way, you’ll end up with a sale and purchase agreement that your lawyer should review.
- Disclose what you know. Sellers have obligations to be honest about the property. Your lawyer can advise you on what you need to disclose.
- Satisfy the buyer’s conditions. The buyer may have a building inspection or finance condition. Once those are cleared, the deal goes unconditional.
- Prepare for settlement. Your lawyer will arrange to discharge any mortgage over the property and get everything ready to hand over.
- Settlement day. The buyer’s money arrives, your mortgage is paid off (if you had one), and you hand over the keys.
Things people often don’t know
The agreement is binding
Once you sign a sale and purchase agreement, you’re legally committed — subject to any conditions. Always get your lawyer to look it over first.
Title search matters
Checking the title reveals who actually owns the property and whether there are any restrictions on what you can do with it.
LIM reports
A Land Information Memorandum (LIM) from the council tells you about consents, zoning, flooding risk, and more. Worth getting on any property.
Leaky homes
New Zealand has had issues with weathertight homes. A building inspection is especially important for homes built between 1990 and 2010.
Costs to budget for
Beyond the purchase price: lawyer fees, building inspection, LIM report, moving costs, and potentially a valuation. Budget for these early.
No stamp duty
Unlike Australia or the UK, New Zealand has no stamp duty on property purchases. That’s one cost you don’t need to worry about.
How we can help
Our job is to take the stress out of the legal side of your property transaction. We’ll explain everything in plain English, flag any issues before they become problems, and make sure settlement goes smoothly. We work with first home buyers regularly and know how daunting the process can feel. There’s no such thing as a silly question — we’re here to help you understand what you’re signing and what it means for you.
Ready to get started?
Get in touch for a free, no-obligation chat about your property transaction.