First home buyers FAQs

Looking to purchase your first home can be daunting. We have outlined five of our most Frequently Asked Questions that we as property lawyers often get asked by our first home buyer clients.

‍

1. Do I really need to have a lawyer look over the agreement for sale and purchase and any other property documentation before I sign?

A: Yes! It is important to send the agreement for sale and purchase to your lawyer before you sign. If you have not required legal services or a lawyer before, we recommend engaging a lawyer before you find a property you would like to purchase, to enable them to onboard you as a client. This means that, once you have found a suitable property, you can send them the agreement and they can look over it for you as soon as possible to ensure you meet any required timeframes to submit your offer. Your lawyer will not be able to look over documents or provide you with advice until you are set up as their client.

‍

2. How much deposit do I need?

A: Generally, most banks require you to have a deposit of 20% of the purchase price. In some circumstances you may be eligible for lower deposit lending. When you are ready to start looking to purchase a property, we recommend you engage with your bank or a mortgage broker as soon as possible, to ascertain how much you are able to borrow. This will determine your purchase price range. If you have been a KiwiSaver member for three years then you may be able to withdraw your KiwiSaver to assist you with your deposit. Find out more about the process for withdrawing your KiwiSaver.

‍

3. Can I sign an agreement and then change my mind for any reason afterwards?

A: No. When you submit an offer and it is accepted and signed by the Vendor, you are required to use your best endeavors to complete your obligations under the agreement including satisfaction of the conditions. If you cancel the agreement you are required to cancel pursuant to a specific condition. It is important that you obtain advice regarding the agreement before you sign it, and that you discuss with your lawyer appropriate conditions to be included in the agreement to ensure you can exit it if you need, for example if you cannot obtain finance or if the LIM or Building Report in relation to the property is unacceptable. Find out more about the 5 most common purchaser conditions in agreements for sale and purchases.

‍

4. What does unconditional mean?

A: When you instruct your lawyer to confirm all conditions of your agreement as satisfied, it means your agreement is unconditional and you are legally obliged to complete the purchase. While an agreement still has conditions to be met then you can cancel it if the outcome of the conditions is not acceptable to you. Once the agreement is unconditional you are bound to complete the purchase and the vendor is generally entitled to keep your deposit paid.

‍

5. On the settlement day we would like to move in as soon as possible. How early can we get the keys?

A: Unfortunately, your lawyer has no control over what time the property settlement occurs. The timing of settlement depends on a range of factors including (but not limited to) when we receive the relevant documentation to ensure the vendor passes clear title at settlement and when we receive your bank loan funds into our trust account. We always try to complete settlement as early as possible for our clients. As soon as settlement occurs, the vendor’s solicitor advises the real estate agent to release the keys to the purchaser. Generally, most property settlements occur early to mid afternoon.

‍

If you are considering purchasing your first home, get in touch with our property team and we can assist you in the process.

‍