“What Does This Mean?”
Unconditional - When both parties have signed a contract, and there are no conditions attached to the contract or when the condition in the contract have been satisfied. This means that the contract is now unconditional and both parties are now legally bound by the contract and are obliged to settle on the terms as specified in the contract.
Settlement Day– This is the date when the agreed purchase price for the property is paid to the vendor. Following this, the registering of transfer of ownership from the vendor into the purchaser’s name occurs. If there is a mortgage for the purchaser this will also be registered on the title. The keys will then be released and possession of the property can be taken by the purchaser.
Chattels vs Fixture – Movable property is a chattel, this is property that can be removed without causing damage to the property. Standard chattels may include: stove, fixed floor coverings, blinds, curtains, light fixtures, dishwasher and whiteware. Fixtures are generally something that is attached to the land and thus, when the land is sold this will also include fixtures. Examples of fixtures may include: garages, carports, some garden sheds, swimming pools.
Pre-settlement inspection– Prior to settlement date, the purchasers have the right to inspect the property to check that it is in the same condition as it was when the contract was signed – such as if there was a window broken at the time of signing the contract, then that window does not need to be fixed. If however the window was broken between the time the contract was signed then the vendors would be required to repair it. You would also check during that inspection that all chattels are in reasonable working order. If there are any problems the purchaser’s lawyer can outline the possible options and negotiate with the vendor’s lawyer as how to rectify any problems.
LIM Report – A Land Information Memorandum (LIM) is issued by the local authority and provides a summary of information that the local authority has about the property such as potential erosion and flooding, private and public stormwater and swage drains, rates, building and resource consents, NZ historic Places Trust listings and any information that has been notified to the local authority by any statutory organisation in terms of any other Act.
Land Covenants - A covenant is a legal obligation that directly relates to the land. Land covenants are registered on the title of a property. Covenants are implemented to maintain the general quality of a neighbourhood. Land covenants may include restrictions such as: fencing quality, keeping the yard tidy, maintenance of buildings, limiting the amount of houses built on a property, the type of animals allowed on a property and so on.