What to Expect From a Property Lawyer in New Zealand

The Conveyancing Process Explained

Property conveyancing is the legal process of transferring ownership from seller to buyer. Here's what happens at each stage:

Stage 1: Before You Sign (Pre-Contract)

Ideally, engage your lawyer before making an offer:

• Agreement review: Your lawyer checks the sale and purchase agreement
• Condition advice: They suggest protective conditions (building inspection, finance, LIM)
• Title search: Preliminary check for obvious issues
• Special clauses: Draft any unusual terms you need

Stage 2: Conditional Period

Once the agreement is signed with conditions, your lawyer:

• Full title search: Examines the title, easements, covenants, and encumbrances
• LIM review: Checks Land Information Memorandum for council issues
• Building report review: Discusses any concerns with you
• Body corporate search: For units - reviews rules, finances, minutes
• Pre-contract disclosure: For units - checks mandatory seller disclosure
• Requisitions: Asks vendor's lawyer questions about the property

Stage 3: Going Unconditional

When conditions are satisfied:

• Confirmation: Your lawyer confirms the agreement is unconditional
• Deposit: Usually 10% is released to the vendor's agent or lawyer
• Finance finalisation: Final mortgage instructions from your bank
• Settlement date set: Countdown to ownership begins

Stage 4: Pre-Settlement

In the weeks before settlement, your lawyer:

• Prepares settlement statement: Shows all money in and out
• Mortgage documents: Works with your bank on loan documents
• Searches: Final checks for any last-minute issues
• Rates and levies: Calculates adjustments between parties
• Authority and direction: Prepares documents for settlement

Stage 5: Settlement Day

On settlement day:

• Final search: Last-minute title check
• Funds transfer: Your lawyer receives bank funds and transfers to vendor
• Document exchange: Legal documents transferred electronically via Landonline
• Registration: You're registered as the new owner
• Keys: Released once settlement confirmed (usually via agent)

Timeline: Offer to Settlement

Here's a typical timeline for a standard house purchase:

Stage	Timeframe	What Happens
Offer made	Day 0	Agreement signed, conditions begin
Due diligence	Days 1-10	Building inspection, LIM, finance application
Conditions met	Day 10-15	Agreement goes unconditional
Pre-settlement	Days 15-28	Mortgage finalised, documents prepared
Settlement	Day 20-30	Funds transfer, ownership registered

Settlement dates are negotiable - common periods are 20, 25, or 30 working days. Longer settlements are possible for chain purchases or when vendors need time to move.

What Your Property Lawyer Handles

Here's a comprehensive list of what's included in standard conveyancing:

Communication During Conveyancing

Expect different levels of communication at different stages:

Early Stage (Days 1-10)

• Confirmation they're acting for you
• Request for information and ID verification
• Title report and any concerns
• Questions about conditions and LIM

Middle Stage (Days 10-20)

• Confirmation of unconditional status
• Mortgage document requests
• Settlement statement draft
• Requests for deposit balance (if applicable)

Pre-Settlement (Final Week)

• Final settlement statement
• Confirmation of settlement time
• Instructions for the day
• Confirmation when settled and keys available

Special Situations

Buying a Unit Title (Apartment/Townhouse)

Additional steps for unit titles:

• Body corporate search - financial health, rules, meeting minutes
• Pre-contract disclosure review - mandatory information from seller
• Long-term maintenance plan assessment
• Understanding of body corp levies and rules

Cross-Lease Properties

• Lease document review - restrictions and obligations
• Flats plan check - matches actual building
• Understanding of shared responsibilities

Buying at Auction

• Due diligence must be done before auction
• Agreement is unconditional when hammer falls
• Deposit (usually 10%) payable immediately
• Your lawyer should review title before auction day

Off-the-Plan Purchases

• Sunset clause review (developer's right to cancel)
• Deposit protection arrangements
• Understanding of what's included
• Settlement may be 1-3 years away

Common Issues and How They're Handled

Issue	What Happens
Settlement delay (buyer)	Penalty interest charged, possible cancellation
Settlement delay (vendor)	May need to provide accommodation or compensation
Title defect found	Vendor must remedy or renegotiate
Building issues discovered	Use building condition to negotiate or exit
Finance falls through	Finance condition protects you (if still conditional)
Chattels missing at settlement	Funds held back until resolved

Questions to Ask Your Property Lawyer

1. What's your fixed fee and exactly what's included?
2. What disbursements should I expect?
3. Have you reviewed the title - any issues?
4. What conditions do you recommend?
5. How will you communicate with me?
6. Who specifically handles my file?
7. What do you need from me and by when?
8. When can I expect to get the keys?
9. What happens if settlement is delayed?
10. Do you handle the mortgage documents too?

Red Flags to Watch For

• Lawyer unreachable approaching settlement
• Unexpected extra fees after engagement
• No clear explanation of title issues
• Pressure to go unconditional before you're ready
• Settlement statement not provided in advance
• No confirmation of settlement on the day