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Additional Charges: |
Occasionally during a transaction we will consult you about additional steps which could be taken. These may incur further cost to you which will be identified and agreed with you beforehand. |
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Agreement: |
This is the written contract between the Buyer and Seller. It contains the main terms of the agreement such as the property description, the purchase price, relevant dates and the names of the Buyer and Seller. If anything goes wrong, the agreement sets out the process to be followed. |
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Caveat: |
Registered against the Certificate of Title to give notice of a person’s interest in that property. A caveat prevents registration of interests against the Certificate of Title |
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Certificate Of Title: |
A Certificate of Title is the Government guaranteed record which sets out the legal description and ownership of a property, and details other property rights and obligations attached to that land e.g. registered mortgages, easements, covenants. |
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Conditions: |
An agreement may be conditional by a specified date on a number of matters including obtaining finance, a LIM, or the sale of another property. The agreement will not proceed until these conditions are satisfied. |
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Conveyancing: |
The practical and legal procedure to transfer property including the preparation of an Agreement for Sale and Purchase through to settlement and the registration of the transfer of title. |
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Conveyancing Charge: |
Our charges are split into two parts:-- Initial charge is a fee and disbursements payable to us at the time we accept your instructions.
- Completion charge is a fee and disbursements on the agreement becoming unconditional and will be payable to us upon your agreement becoming unconditional.
Both charges are not refundable. |
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Covenant: |
A restriction registered on the title that is legally binding and regulates matters such as current and future buildings or the use of land. Covenants and easements may be a benefit to or an obligation of a property. |
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Cross Lease: |
A cross-lease is ownership of a share of the land, and a lease of part of the land and buildings. The plan on the cross-lease Certificate of Title should correspond with the footprint of the buildings or structures on the ground. |
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Deposit: |
That part of the purchase price paid in advance. |
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Deposited Plan: |
The survey plan of subdivision from which Certificates of Title are issued and easements are drawn and recorded. |
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Disbursements: |
This covers costs incurred by us on your behalf such as postage, photocopying, phone calls, Land Transfer Searches, and document registration fees. |
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Discharge Of Mortgage: |
If you are selling, we contact your mortgage lender and find out how much it will cost to pay off your mortgage. We then repay your mortgage on settlement. |
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Easement: |
An easement is a right for someone who is not the owner of a property to have a certain use of all or part of it. The most common examples are water, telecommunications and sewage easements where services pass through a property, or rights of way. |
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Encumbrance: |
A restriction or limitation on the Certificate of Title which may or may not be able to be removed. Encumbrances include mortgages, changes, easements and covenants. |
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Filetrac©: |
By using Filetrac© you can follow your sale and/or purchase online, 24 hours a day, 7 days a week. As progress is made with your transaction, Filetrac© is updated. All relevant correspondence and documentation is available for you to view. |
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Freehold: |
Ownership of the property, subject to national, regional and local rates and taxes. The State retains the right of compulsory acquisition and is the source of all general freehold land. |
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Further Terms Of Sale: |
Terms of the Agreement between the buyer and seller which are typed in addition to the printed terms. Where there is a conflict between the printed and inserted terms, the inserted terms prevail. |
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Guaranteed Search: |
A search of the Certificate of Title which provides for a specified period statutory protection for a purchaser against registration of adverse interests on the Certificate of Title. |
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Instruction / Instructions: |
Your request to us to transact your Sale and/or Purchase. |
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Interest Rate: |
The rate of interest paid on the balance of the purchase price owing in the case of late settlement – generally agreements must be settled by 4pm on the settlement date. |
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Joint Tenants: |
A joint tenancy arises when two or more people or entities are registered on the Certificate of Title and not described as taking separate shares. Ownership is shared and, on the death of one owner, ownership of the property automatically passes to the other owner(s). Joint tenancy is a common way ownership is structured by homebuyers in a relationship. |
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Leasehold: |
The property is leased from the owner of the freehold for a certain period under a written lease and rent is paid. Before the end of the period, the lease is rewritten or the property passes back to its owner. |
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Legal Description: |
The legal description is taken from the property’s Certificate of Title. It generally includes the area in square metres (m2), lot number, the Deposited Plan of Survey and register reference. |
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LIM: |
A Land Information Memorandum (LIM) is a report produced by a city or district council detailing the council records on the property. This may include consents, rates, drainage systems, flooding problems, instability of the land, etc. |
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LINZ: |
Land Information New Zealand (LINZ) is the statutory body responsible for maintaining the land registration and land transfer system in New Zealand. |
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Mortgage: |
The document which is registered against the Certificate of Title where you grant to a Lender security over the property for a loan(s). |
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Mortgage Broker: |
A mortgage broker will organise a mortgage (loan) for you, providing you meet certain criteria. |
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Mortgagee: |
The person(s) giving a mortgage in favour of a Lender - called the mortgagor. |
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Notice Of Sale: |
After settlement of a sale a seller is required to send completed notice of the transaction to Land Information New Zealand and the relevant local authority. We will attend to this for you. |
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Possession: |
This may be actual physical possession by the purchaser. It also includes the situation where the purchaser has allowed a tenant into physical occupation in exchange for the right to receive rent from the property. |
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Property: |
“Property” includes land and buildings. |
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Purchaser: |
The Buyer of the property. A Buyer may authorise someone to act as their agent in the sale and purchase. An agent may be authorised to sign the agreement which will bind the party on whose behalf the agreement was signed. Whether or not the words “or nominee” are added after a Buyer’s name, a Buyer may nominate someone else at a later date to complete the purchase instead of the named Buyer. However, this does not release the named Buyer from their obligations as purchaser under the agreement. |
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Registered Proprietor: |
The names of the registered proprietors (owners) are listed on the property's Certificate of Title. |
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Secured Website: |
Access to a secured website is only permitted when defined information provided by the user can be verified by the website you are accessing.
The information you enter online is “encrypted” or transformed into a string of unrecognizable characters before being sent over the Internet. This helps to keep the information between propertytransfer.co.nz and your Internet browser private. The strongest level of encryption is 128-bit, used on popular web browsers such as Microsoft® Internet Explorer and Netscape® Navigator. Your session is in a secured “encrypted” environment when you see https:// in the web address, and/or when you see the locked “padlock” icon at the bottom right corner of your browser window. |
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Settlement: |
On settlement, the Buyer pays the balance of the purchase price as set out in the Vendor’s settlement statement. At the same time, the Seller hands to the Buyer the signed transfer document, and any other documents required to register a clear transfer of title, keys and possession as agreed. |
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Settlement Statement: |
This statement shows relevant outgoings and incomings on the property apportioned to possession date and includes rates, rent paid or received, licence costs, the deposit paid etc. It sets out whether the Buyer or Seller pays the rates and any other costs. |
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Solicitors Approval Clause: |
Care needs to be taken with this type of condition as a Solicitor may be limited in the way he/she can exercise their discretion. It's use should not be considered as an easy way out of an agreement. |
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Tenants In Common: |
Where two or more people own property in defined shares. Upon the death of one owner, ownership of that person’s share passes according to their will, not automatically to the surviving owners. A tenancy in common is usual where the property is a farm, or the co-owners wish to maintain separate ownership. |
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Transfer: |
This is the document that passes ownership of the property from the Seller to the Buyer and is registered with LINZ. |
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Trust Account: |
The New Zealand Law Society regulated bank account and accounting system maintained by Halliwells. |
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Unconditional: |
When all the conditions of the agreement have been fulfilled or satisfied and notice of this has been communicated by the Buyer or Seller in whose favor the condition is e.g. the Buyer has obtained finance or the Seller has obtained a replacement property. |
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Unit Title: |
A unit title is where the flats or apartments are individually owned but areas of common property are administered by all the flat owners together through a body corporate. The body corporate is a statutory legal entity comprised of the owners set up to meet common property ends and manage the common areas.
The plan on the Unit Title Certificate of Title should correspond with the foot print of the buildings and structures on the ground. |
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Vendor: |
The Seller of the property. |
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Warranty: |
A representation (generally always by a seller) as to certain matters of fact on which a purchaser can rely. |
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