APIA Blog

RSS Feed

Conveyancing Q&A - Long settlements

Wednesday, September 07, 2016

  

In this week's Conveyancing Q&A, Hilary Jenkins covers issues relating to long settlements.

APIA Ask An Expert

 

I am negotiating on a property where the vendor is asking for a long settlement (12 months) for selling at below market value. I don’t mind the long settlement but anything can happen in the next 12 months that can significantly change the deal for me. What are some of the risks for a buyer when there is a long settlement?

 

 

APIA Ask An Expert

 

 

Although there are vendor warranties in the Agreement that the property and chattels should be in the same condition as when the Agreement was signed, a long-term settlement does have added risk that there could be damage caused while the current owner is living in the property for an extended period which can create problems at settlement.

In the current financial climate, it is very important to be sure any loan approval will not expire before settlement and you should ensure you register a caveat to protect your interest in the property and look to have the deposit held until settlement.

 

Disclaimer - The answer provided above is informational and should not be relied upon as legal advice.  For personalised legal advice, please feel free to contact Lifestyle Legal Services Limited or your professional legal advisor directly.  

Hilary Jenkins

Hilary is the director of Lifestyle Legal Services and a veteran of the conveyancing industry having built up an impressive work history of over 20 years (15 of which as a Registered Legal Executive).

To date, Hilary has played an integral part in the success of a wide range of residential and commercial transactions.  Lifestyle Legal stem out of Hilary's passion for the property industry and desire to offer clear and down-to-earth advice for her customers.  


Do you have any conveyancing related questions for Hilary?  Email your questions through to admin@apia.org.nz.  


Recent Posts


Tags

nzpif management minor dwelling letting fee will insurance interest limitation buying rules anz market warm up new zealand banking short term rental business Editor's Choice fixed-term tenancy rtaa2020 bad tenant cgt Standards New Zealand rental wof HSWA subdivision clnz meth contamination Jeff Bezos housing package barfoot and thompson sublease election2020 rental market parry v inglis education structure legal trespass recycling equity Level 4 apia house prices HHS Must know CCC worksafe mindset housing bubble water bill shortland chartered accountants auckland council renovation damage property apprentice interest rates trust positive cash flow mortgage Case study first home buying winz CoreLogic wins property maintenance debt to income property cycle boarding house finance property value Property (Relationships) Act Kris Pedersen Mortgages and Insurance insulation Gluckman khh HHGA opes partners partners sale and purchas advice development tax principal and interest ventilation shower dome capital gain RBNZ smoke alarm kiwibuild early termination rent control tenancy services maintenance buyer's agent twg report heat pump heater extractor fan tenant sale and purchase Guest blog income TCIT meth Sponsored post asbestos property management personal growth Zodiak Management RTAA 2019 ird government unitary plan commerce commission LIM gluckman report Must knows market rent Market report letting anti-social behaviour tenancy issues beginner investor debt enforcement holiday house landlord ask an expert privacy relationship rta reform covid-19 investment strategy warren buffett daikin termination productivity retaliatory notice cat How to financial advisers act Investor story yield Holler auckland election 2017 property Q&A Landlording interest only bond ring-fencing skill shortage Tribunal case study reserve bank speculator initio housing affordability investor airbnb travel bubble DTI robert kiyosaki negotiation data security quiet enjoyment inflation interest deductibility Question and answer heating p lab tenancy tribunal wealth creation bond form equity rent return scotney williams Investment tip building buying television watercare ocr brightline rent arrears legal cost trademe rta inspection off the plan cash-flow bankruptcy short-term rental re agent lvr rent increase

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo