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Conveyancing Process

two 3d humans carry a home in their handsConveyancing Process

The Conveyancing Process Initial Steps

Once you have chosen and informed the solicitors you would like to commence the conveyancing process when selling your property, you will soon receive a ‘Letter of Engagement’ or ‘Confirmation of Terms of Business. This should be signed and returned promptly so the work can begin. In some circumstances the solicitor may request funds to cover initial expenditure.

Once your solicitor has been officially instructed to start the conveyancing process they will, if necessary, obtain the title deeds from your lender.

The conveyancing process when selling your property requires the ‘Property Information Form’ and ‘Fixtures, Fittings and Contents Form’ to be completed. These are standard forms provided by your solicitor. If your property is leasehold you will also need to fill out a ‘Seller’s Leasehold Information Form.’

It is essential your solicitor is aware from the outset of the conveyancing process whether you are buying a property at the same time. If this is the case the two transactions need to be tied together.

You should also inform your estate agent which solicitor you plan to use so they can send a ‘Memorandum of Sale’ to all the relevant parties, along with a copy of the property particulars.

Conveyancing Process Prior To Contracting To Sell

Once the solicitor has obtained the title deeds and you have returned the standard forms these are then sent to the buyer’s solicitor for approval together with a supporting package which will include documents dealing with title, planning and any applicable guarantees.

If the conveyancing process is for the sale of a leasehold property, your solicitor will receive a standard ‘Managing Agents Questionnaire’ from the buyer’s solicitors. This is then sent on to the relevant landlord, managing agents or residents association.

Once the paperwork has been examined by the buyer’s solicitor they may require clarification on certain points. The conveyancing process entitles the buyer to raise inquiries with your solicitor, who may need to liaise with you to provide the information requested.

The buyer is entitled to rely upon any information supplied on your behalf. For this reason it is important to ensure any information supplied to your solicitor is accurate and makes a full disclosure of the relevant facts concerning your property.

The Conveyancing Process And Your Mortgage

Your lender will supply an up to date statement to your conveyancing solicitor detailing the amount required to repay your mortgage.

You should provide your solicitor with details of all loans secured against your property as these will need to be repaid upon completion of your sale.

Signing Your Contract

The next stage of the conveyancing process when selling your property involves the approval of the contract by the buyer’s solicitor to sign in readiness for exchange.

Exchange Of Contracts

Before any exchange takes place all parties involved need to agree on the completion date.

From the point within the conveyancing process at which contacts are exchanged, you are legally bound to sell your property and the buyer bound to buy. Should either party back out of the conveyancing process the other party is entitled to claim compensation.

Between Exchange And Completion

The solicitor who has led you through the conveyancing process when selling your property will send you a statement detailing their charges, loans to be repaid and all other outgoings. Any balance due to your solicitor will need to be in their account and cleared prior to the completion date.

You will be required to sign a ‘Transfer of Deed’ in readiness of completion

Upon Completion Of The Conveyancing Process

Your solicitor will pay off any mortgages and other expenses giving an undertaking to your buyer’s solicitor to send your lender’s final formal release of mortgage through. The title deeds and signed transfer will then be sent to your buyer’s solicitor.

Once your solicitor has confirmed all the remaining monies have arrived then the conveyancing process involved in selling your property is complete. You should arrange to drop off the keys with the agent for the buyer to collect.

Property Investing

ConveyancingProperty Investing

Owning rental property has been a popular investment for many Kiwis over the years. The difference between an investment property and your own home is that you earn an income from it. Returns from property investment come from rental income and from any increase in the value of property over time.

Returns from property
Borrowing for investment property
Risk of investing in property
How much work is involved?
Other ways to invest in property

Returns from property

Property has two types of potential returns. One is from rent paid by tenants and the other is from the property increasing in value – called capital gain.

Property investments are not considered to be ‘liquid’ because you can’t withdraw your investment quickly. To get money out you need to sell the property or increase the mortgage. This may not be easy – and there can be extra costs such as valuation and real-estate agent fees.

People buy investment properties to make a long-term profit as prices rise. In the short term there may be little or no profit from rent after expenses like mortgage, insurance, rates and maintenance are taken into account.

Borrowing for investment property

It is usually harder to borrow money for a rental property than for your own home. Some lenders may have lower lending limits for investment properties. As with ordinary home loans, lenders will look at what you can afford to repay.

Some lenders and mortgage brokers have particular expertise in lending for investment.

Risk of investing in property

Property investment is often described as ‘safe as houses’. Yet there are risks, for example:

  1. Your lender can ask you to repay the mortgage unexpectedly and you may not be able to sell, or sell for enough to cover the mortgage.
  2. If the investment property is mortgaged with the same bank as your own home, there is the risk that the bank could sell both properties if you run into difficulty with paying either mortgage.
  3. You might need, for some reason, to sell the property at a time when it has dropped in value, and be left still owing the lender money after the sale.
  4. Interest rates may increase, so the money you make from the property is reduced.
  5. Paying off the mortgage as fast as you can, reduces these risks.

How much work is involved?

Property investment usually involves more work than saving money in the bank or investing in shares and managed funds. Most investors spend a lot of time looking for suitable properties to buy, finding and managing tenants, and arranging for maintenance work to be done.

A property manager can do some of this work in return for a percentage of the weekly rent. The manager will take on the tasks of finding tenants, collecting the rent and bond, and dealing with maintenance issues and tenant communications on your behalf.

Other ways to invest in property

As well as buying property directly, you can also invest in managed funds that buy and sell commercial property. These funds may own properties such as office buildings, factories, and shopping centres directly, or they may own shares in other funds that own the property (known as property securities). As an investor you receive income if the managed fund makes a profit on rents it receives, or sells the buildings or shares at a profit.

You can also receive a capital gain if the fund price has risen by the time you sell.

Property funds give you the advantages of property ownership without having to find the property and do the hands-on management yourself. They also make it possible for small investors to own a diversified portfolio of commercial property, which has a different cycle of ups and downs to residential property.

Checklist for Buying a Property

ConveyancingChecklist for Buying a Property

Buying a property is not only buying a dream property but also your investment in life. It is obvious that you don’t want to invest on property which causes problem or risk in future. You may be searching for assistance or checklist to guide you for buying your dream property. Here are some checklists for smooth and easy buying of property.

Clear Title

Do not buy a property if the title of property is not clear. If title is not clear or marketable it will cause problem in future and financial institutes refuse to finance on such properties. You can either seek assistance of your lawyer or approach financial institutes to know whether the title of the property is clear. Your property title confers the owner of the property.

Documents

Ensure that seller of property has all documents relating to property. If possible ask for copies of original documents and get them verified by your legal advisor or lawyer.

Expense for buying

Consider cost for property and other expense incurred for owing the property. Cost of property is not rate of property but also includes other costs. Some of the important costs incurred for buying a property are fee for lawyer, Registration and notary cost, realtor’s commission etc.

Home Insurance

Home insurance for your property helps you to meet unexpected loss or expenses. This helps you in case of theft, fire or other natural calamities. While applying for home insurance, search for company which offers you insurance at low premium rate.

Title insurance

This insurance is important for buying a property and protects buyer against any losses. This is an advantage for buyer when buying a property and helps to avoid from buying a property with defect in title.

Approved layout

Get copy of approved layout for the building from your builder or seller of property. Ensure that building plan and construction is approved by the authorities and property is listed in government register.

Consult a Realtor

Choose a good realtor or agents for helping you to buy a property. You can contact agents or realtor in your neighborhood. Remember do not buy a property believing the realtor or seller, buy them only if you are convinced and feel comfortable with.

Ensure property is free from debt and liabilities

Ensure you are buying a property which is free from debts and all taxes are paid in time. If seller of property has taken any loan or advance on the property, ensure they are paid off and ask them for documents or copies to show that property is debt free.

Intimation of disapproval (IOD)

IOD is set of instruction given by respective authorities for builders to construct the building. Normally it is valid for a period of one year and if the building is not constructed within one year’s time, IOD has to be reissued.

Water and power supply

Ensure that property you are buying has adequate water supply and there is no problem of power such as voltage fluctuation, power shortage etc. Voltage fluctuation can damage your home appliances. Ensure the availability of water and power supply.

When buying a property ensure that there is no claim on the property by authorities or government and check whether land is designated for the residential purpose. Before buying the property ensure you have good neighbors and check the reason for selling the property. Make good market research and seek expert’s service for making your decision.

Tips To Sell Your Home Faster

ConveyancingTips To Sell Your Home Faster

In a declining real estate market where supply outstrips demand, a person can generally sell a house faster by lowering the price. But there are other ways to enhance a home’s attractiveness besides lowering the asking price. If you’re looking to sell your home in a cooling real estate market, read on for some tips on how to generate interest and get the best price possible.

Differentiate From the Neighbors
In order to attract attention and to make your home more memorable, consider custom designs or additions, such as landscaping, high grade windows or a new roof. This can help improve the home’s aesthetics, while potentially adding value to the home. Any improvements should be practical and use colors and designs that will appeal to the widest audience. In addition, they should compliment the home and its other amenities, such as building a deck or patio adjacent to an outdoor swimming pool.

However, while it can pay to spice up your home, don’t over-improve it. According to a 2006 article in Realtor Magazine, some renovations, such as adding a bathroom or a sun room, might not always pay. The data suggests that the nationwide average amount recouped for a bathroom addition is about 75%. For a sun room, it’s even less. If you’re going to invest in renovations, do your research and be sure to put your money into the things that are likely to get you the best return. In addition, if you have added any custom features that you think buyers will be interested in, make sure they are included in the home’s listing information. More than ever, in a down market you should take every small edge you can get.

Clean the Clutter
It is imperative to remove all clutter from the home before showing it to potential buyers because buyers need to be able to picture themselves in the space. This might include removing some furniture to make rooms look bigger, and putting away family photographs and personal items. You may even want to hire a stager to help you make better use of the space. Staging costs can range from a couple hundred dollars for a basic consultation to several thousand dollars, particularly if you rent modern, neutral furniture for showing your home. Many people feel that stagers can make a home more salable, so hiring one deserves some consideration.

Sweeten the Deal
Another way to make the home and deal more attractive to buyers is to offer things or terms that might sweeten the pot. For example, sellers that offer the buyer a couple of thousand dollars credit toward closing costs, or offer to pay closing costs entirely will in some cases receive more attention from house hunters looking at similar homes. In a down market, buyers are looking for a deal, so do your best to make them feel they’re getting one.

Another tip is to offer a transferable home warranty, which can cost $300 to $400 for a one-year policy and will cover appliances, such as air conditioners and refrigerators, that fail. Depending on the policy, other appliances and house gadgets may be covered as well. A potential buyer may feel more at ease knowing that he or she will be covered against such problems, which could make your home more attractive than a competing home.

Finally, it’s important to note that some buyers are motivated by the option to close in a short amount of time. If it is possible for you to close on the home within 30 to 60 days, this may set your deal apart and get you a contract.

Improve Curb Appeal
Sellers often overlook the importance of their home’s curb appeal. The first thing a buyer sees is a home’s external appearance and the way it fits into the surrounding neighborhood. Try to make certain that the exterior has a fresh coat of paint, and that the bushes and lawn are well manicured. In real estate, appearances mean a lot. What better way to set your home apart than to make it attractive at first glance?

Get Your Home in “Move In” Condition
Aesthetics are important, but it’s also important that doors, appliances and electrical and plumbing fixtures be in compliance with current building codes and in working order. Again, the idea is to have the home in move in condition and to give potential buyers the impression that they will be able to move right in and start enjoying their new home, rather than spending time and money fixing it up.

Pricing It Right
Regardless of how well you renovate and stage your home, it is still important to price the home appropriately. Consult a local real estate agent, read the newspapers and go to online real estate sites to see what comparable homes are going for in your area.

It’s not always imperative to be the lowest priced home on the block, particularly when aesthetic and other significant improvements have been made. However, it is important that the listing price is not out of line with other comparable homes in the market. Try to put yourself in the buyer’s shoes and then determine what a fair price might be. Have friends, neighbors and real estate professionals tour the home and weigh in as well.

The Bottom Line
Selling a home in a down market requires a little extra work. Do everything you can to get the home in excellent shape and be prepared to make some small concessions at closing. These tips, coupled with an attractive price, will increase the odds of getting your home sold.

Quick Tips For Beginner Real Estate Investors

Conveyancing Solutions10 Tips To Follow When Starting A Real Estate Investment

Investing in real estate is not an easy process for those who have never done it before. But, just because you are a beginner doesn’t mean you cant do it, so I hope the tips below help guide you in the right direction.

While some seasoned real estate investors make it look easy, to be successful, beginners should follow some basic principles.

  1. Learn all you can. Before committing your cash, you should have a fundamental understanding of real estate. For example, be aware that, in general, investment properties are not liquid investments. Barring exceptional circumstances, real estate does not sell at a moment’s notice. It could take days or months to sell a property, depending on the strength of the market in a particular region.
  2. Consider cash flow. You’ll need to have enough capital on hand to cover any short-term losses due to vacancies between tenants.
  3. Start small. Look into buying a condominium, single-family home or a duplex. Leave large apartment buildings and commercial properties to the pros.
  4. Inquire at the local Chamber of Commerce about companies relocating into or out of the area. Company movement is one indicator of demand for rental and/or office space.
  5. Find a property that will be in demand. Look for a moderately priced home with three or four bedrooms, two bathrooms, and a garage that sits on a quiet street.
  6. Research the property. The most common way first-time investors lose is by failing to investigate a property thoroughly. Look beyond the front door. Investigate the reputation of the school district, the crime rate, and plans for expanding a nearby highway or developing vacant land. Ask a local real estate professional about the area, its history, and how fast (or slow) properties are moving.
  7. Inspect the home you’re considering for signs of water damage, such as stains on the ceiling and crinkling or gathering wallpaper; open and close every door and window; and check all electrical sockets by plugging in an appliance. Get an independent home inspection, roof inspection and termite inspection. Unexpected repair costs can eat away your cash flow. Because even the best inspection can’t always predict problems, try to set aside some of the rental income for unexpected repairs.
  8. Spend time driving the streets of the neighborhood noting the condition of other properties. Are lawns maintained? Are roofs in good shape? Are homes kept up?
  9. Be ready to make fixes quickly and respond to the renter’s needs. If you’re not prepared to be a hands-on landlord, consider hiring a property management firm.
  10. See your tax advisor for related planning and laws that can affect your investment decisions.

Big Benefits of Investing in Real Estate

 

 

 

 

ConveyancingBig Benefits of Investing in Real Estate

Cash Flow – Cash flow is the income that is generated by the property after paying all expenses. It is created by rental income. It’s much like a stock that pays a dividend every month you own it. This is the income you can bring home each month after you collect the rent and pay all the expenses of the property. It’s one of my favorite advantages of owning investment real estate.

Leverage – Leverage gives you the ability to own a property even though you may only pay cash for a small percentage of it. Leverage allows you to minimize your out of pocket costs and control larger amounts of property. It also allows you to accentuate your return on investment. It also allows you to control large investment properties with less money. This is a major advantage to real estate over other asset types. See our article on Leverage for a more detailed explanation.

Appreciation – Appreciation is the increase in value over time. Appreciation in investment real estate can occur due to inflation, supply and demand factors, capital improvement, and by raising income or lowering expenses over time. Small changes in an investment property over time can increase an investment property’s value significantly. This increase in value is called Appreciation. Appreciation can be realized by an investor when they sell or refinance their property.

Principal Pay Down – Principal pay down is an automatic benefit you receive if you finance your investment real estate. Every month you receive this benefit when you collect rent from your tenants and make your loan payments. When you make those payments, a portion of the payment goes to pay interest on the loan. The other part of the payment goes to pay down the loan and create equity. When you sell or refinance the property in the future, you receive the principal that has been paid down.

Tax Benefits – One of the biggest reasons people invest in real estate is for the tax benefits. These tax benefits are granted by the government, allow you to keep more of the money you make, and minimize your taxable income. Tax benefits in real estate can consist of depreciation, business expense deductions, tax deferred exchanges, and investing tax free with your Self Directed IRA.

Commerical Conveyancing Solutions

commercial-conveyancing

What is Commercial Conveyancing?

Commercial conveyancing can cover a range of businesses, including retail, hospitality, office work and industrial units. It can even extend to agriculture and more. Whatever your area of business you need a business specialized commercial conveyancing solicitor to take care of you rather than a residential conveyancing solicitor. Commercial is generally much more involved than residential and requires much more specific knowledge and vitally, knowledge which is completely up to date.

Different pitfalls appear in commercial conveyancing as opposed to residential, so it is vital that your solicitor is experienced in the field so they know how to avoid any issues that could arise, either at the time of contractual agreement or further into the future. This knowledge will help you avoid time consuming court cases and other financial losses. Negotiations regarding leases are notoriously tricky; a good commercial conveyancing solicitor will make this transaction easier for you. The draft of a lease needs to be well executed to avoid any confusion and any future disputes.

Commercial conveyancing can cover:

  1. Leases and renewal thereof
  2. Buying of property
  3. Selling of property
  4. Sale and acquisition of leases
  5. Guarantees
  6. Rent agreements and deposits
  7. Service charges
  8. Use and licensing of property
  9. Landlord’s consents
  10. General position at end of lease term
  11. General pre-contract inquiries regarding the property
  12. Commercial mortgages

And many more areas of buying, selling and leasing of business property.

It can also cover aspects of shares and assets related to the sale and purchase of businesses themselves. Make sure every aspect of this type of business transaction goes smoothly and employ a brilliant solicitor with a good reputation, with whom you get on with. Being able to communicate well with your solicitor is vital. Experienced solicitors will know common issues and will be able to navigate them rapidly compared to someone with less experience. Avoid financial loss and loss of time by investing in a really good solicitor today. Shop around and find someone who you are completely happy with working with for an extended amount of time and offers a price and package suitable for your needs.