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Conveyancing Q&A - Long settlements

Wednesday, September 07, 2016

  

In this week's Conveyancing Q&A, Hilary Jenkins covers issues relating to long settlements.

APIA Ask An Expert

 

I am negotiating on a property where the vendor is asking for a long settlement (12 months) for selling at below market value. I don’t mind the long settlement but anything can happen in the next 12 months that can significantly change the deal for me. What are some of the risks for a buyer when there is a long settlement?

 

 

APIA Ask An Expert

 

 

Although there are vendor warranties in the Agreement that the property and chattels should be in the same condition as when the Agreement was signed, a long-term settlement does have added risk that there could be damage caused while the current owner is living in the property for an extended period which can create problems at settlement.

In the current financial climate, it is very important to be sure any loan approval will not expire before settlement and you should ensure you register a caveat to protect your interest in the property and look to have the deposit held until settlement.

 

Disclaimer - The answer provided above is informational and should not be relied upon as legal advice.  For personalised legal advice, please feel free to contact Lifestyle Legal Services Limited or your professional legal advisor directly.  

Hilary Jenkins

Hilary is the director of Lifestyle Legal Services and a veteran of the conveyancing industry having built up an impressive work history of over 20 years (15 of which as a Registered Legal Executive).

To date, Hilary has played an integral part in the success of a wide range of residential and commercial transactions.  Lifestyle Legal stem out of Hilary's passion for the property industry and desire to offer clear and down-to-earth advice for her customers.  


Do you have any conveyancing related questions for Hilary?  Email your questions through to admin@apia.org.nz.  

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