What to Check Before Buying a Property in New Zealand
Buying a home is a major milestone, but before you sign on the dotted line, it’s vital to do your due diligence. While the excitement of open homes and house hunting can be thrilling, taking the time to investigate the legal, structural, and financial side of a property purchase is what turns smart buyers into successful homeowners. Here’s what to look out for before you make an offer.
Understand the Title
Start with a title search to understand who legally owns the property and what rights or restrictions are attached to it. The title will tell you the name of the current owner, what type of ownership it is (freehold, leasehold, etc.), and any easements, covenants, mortgages or caveats registered against the land. These details can affect what you can build or renovate, whether a neighbour has access across your property, or if a third party claims an interest in the land. Your lawyer or conveyancer can help explain any technical terms and confirm whether there’s anything that could limit your future use of the property.
Dive into Council Records
Two key council documents are essential when doing your homework: the Land Information Memorandum (LIM) and the property file. The LIM summarises what the council knows about the property, such as consents granted, flood risk, stormwater and sewage systems, zoning, and any outstanding rates. It may also contain alerts about erosion, protected trees, or heritage status.
The property file can go even deeper and include site plans, building consent details, and complaints made by neighbours. Cross-check the plans with what you see at the property. If you spot any unconsented work, raise it with your lawyer. Reviewing council zoning rules is also important—find out what can be built on the section and whether future developments might affect your lifestyle.
Prepare Early When House Hunting
Get to open homes as soon as properties are listed. This gives you time for a second visit, to arrange inspections, and get your finance and legal documents sorted. Always take brochures from the open home and jot down your impressions—after ten viewings, it’s easy to forget which house had the ensuite versus the breakfast bar.
Request a private viewing if you want to see the home without the crowds. It might give you the chance to ask the agent more questions or even submit an early offer. Don’t forget to speak to neighbours—they can reveal useful details about the area or the property’s history.
Know What to Ask the Agent
Once you’ve found a home you’re interested in, ask the real estate agent practical questions. These might include: How long has it been on the market? Has it been owner-occupied or tenanted? Are there any known issues with maintenance or compliance? What’s included in the sale, and are all renovations properly consented? The agent will often have an information pack, but make sure to verify everything with your lawyer.
Get a Lawyer on Board Early
Engage a lawyer or conveyancer as soon as you’re seriously looking at a property. They can review the LIM, title, and sale and purchase agreement before you sign anything. A good property lawyer will spot risks and help you include the right conditions in your offer, especially if you’re making an offer by tender or deadline sale.
Check the Property Thoroughly
Conduct a physical inspection of the home and consider hiring a building inspector. They’ll examine things like the piles, roof, plumbing, and wiring. If there’s potential for moisture issues, request a moisture test. For clifftop homes or unusual land, an engineer’s report might also be a smart investment.
Understand the Value
Online estimates and rating valuations (RVs) are a starting point, but they don’t reflect the true market value. A registered valuation provides a more accurate figure based on recent sales, construction quality, and features. Banks may require one if you're borrowing with less than 20% deposit.
Consider Natural Hazard History
Ask the agent or vendor whether the property has had any claims for flood or earthquake damage. If not, you can request this from Natural Hazards Commission Toka Tū Ake using an Official Information Act request. These reports detail what happened, what was repaired, and what compensation was paid.
If You're Buying a Unit or Apartment
Purchasing within a body corporate? Ask for meeting minutes, financial reports, and maintenance plans. The pre-contract disclosure statement will outline things like insurance, weathertightness issues, and any large planned expenses. Get your lawyer to review these documents—especially the operational rules and whether pets are allowed.
Final Thoughts Before You Make an Offer
Buying a home is part financial decision, part emotional one. Be realistic about your budget and what’s most important to you. Keep an open mind, ask questions, and lean on professionals for help. Do your homework thoroughly—checking the LIM, title, condition, and valuation of the property—and you’ll feel far more confident when it’s time to submit your offer.
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