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Buying Property: Getting Advice Before Signing


Tim and Sam have two small children and have been saving very hard to purchase their first home. Finally they saved enough money for the deposit and contacted a real estate agent to get the ball rolling. They advised the real estate agent that they will be relocating as they wanted to purchase a home that was big enough but still within their price range. The real estate agent took this information on board and began looking in the Waikato and Bay of Plenty areas for a suitable property. 

Tim and Sam received an email from the real estate agent with a few properties he thought they might be interested in. After looking through the photographs, Tim and Sam particularly liked the look of a property in the Bay of Plenty. The property was a weatherboard home with 3 bedrooms, 2 bathrooms and a separate garage. The property was within walking distance to the local primary school and had a large reserve with a playground only a few houses down. 

Tim and Sam contacted their solicitor and advised they wanted to make an offer on a property. Their solicitor reviewed the draft agreement and made recommendations as to what conditions they should include in the agreement. Tim and Sam decided they wanted to make their offer conditional on finance, obtaining a satisfactory LIM report, building report and methamphetamine report. The vendor accepted their offer and the signed agreement was sent to each solicitor.  Tim and Sam ordered the LIM report from Council, contacted a local builder to inspect the property and arranged for a specialist to carry out the meth testing. 

A meth test was carried out and Tim and Sam received a phone call the following day. The specialist advised the meth report had been prepared and emailed to them. The specialist also said there were very elevated readings. A property is considered contaminated if any high use areas in the property have levels of more than 1.5µg/100cm². Tim and Sam began to review the report and were shocked when they discovered that the levels for this property had come in at 26.27µg/100cm². Tim and Sam immediately emailed the meth report to their solicitor and advised they wanted to cancel the agreement.

It is important to have your solicitor review the agreement and provide recommendations before your sign.

For more information on what to look out for when purchasing at auction or purchasing by negotiation check out Property Team Checklist - first home v2.pdf.

Contact details:

Sacha Peterson, Property Team.

Email: sacha@dhlawyers.co.nz

Direct dial: 09 915 4397

Click here to book an appointment with Sacha.

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