Information for Vendor

(Clause numbers refer to the ADLS Agreement for Sale & Purchase 9th Edition 2016)
First Property Legal is a division of Gawith Burridge, Solicitors, Masterton.

 

Land Information Memorandum (LIM)

  • Note clause 10.2 and the 15 working days the purchaser has to approve the LIM

Vendors Undertaking

  • Carefully read all of clause 7.0. Contact us if you think any of the undertakings you are giving to the purchaser may affect you in any way

Possession

  • The possession date is also known as the Settlement date and it is important that both dates are recorded correctly on the agreement (as on the rare occassion the possession date can be different to the Settlement date)
  • Do not give the purchaser the key before the purchase money is received by your lawyer
  • Your real estate agent should not give the key to the purchaser until your lawyer has received the purchase money
  • The purchaser is entitled to inspect the property once before Settlement date upon reasonable notice being given (see clause 3.2)
  • Keys (see clause 3.4)

Rates

  • We collect a refund from the purchaser if your rates are paid in advance
  • We notify the Council of the change of ownership of your property
  • Any rate arrears must be cleared prior to or on settlement

Insurance

  • The property is at your risk until Settlement date (clause 5.1)
  • You should keep your home-owner’s insurance cover current up to and after the Settlement date
  • After settlement you can cancel your home-owner’s insurance
  • Generally, the purchasers arrange their own home-owner’s insurance from Settlement date(unless they take possession early and it is agreed that they insure from the possession date) 

Deposit

  • It is normally the agent’s responsibility to collect the deposit (clause 2.2)
  • Your real estate agent is obliged by law to hold the deposit for 10 working days, once it is received by them
  • You can cancel the contract, under certain circumstances, if the deposit is not paid (clause 2.3)
  • The deposit is refundable to the purchaser, if it was paid, and the contract does not become unconditional
  • The agent usually deducts their commission from the deposit and sends us the balance once the 10 working day holding period is up
  • We hold the balance of the deposit in our Trust Account for you until all conditions are confirmed or until settlement

Late Settlement

  • Settlement should occur before 4.00 pm on the Settlement date
  • There are penalties if the purchaser is late with settlement (clauses 3.11 & 3.12)
  • If you, as the vendor, cannot give possession on the Settlement date there are penalties then imposed on you, as the vendor (clause 3.13)

Chattels

  • Vendors should not remove any of the chattels listed in Schedule 1 of the Agreement
  • See undertakings in clauses 7.2(1) & (2) and 7.3

Tenants

  • If the property is sold subject to tenancy (your tenant is still in the property) you must notify the tenant and transfer the bond to the purchaser (Tenancy Services have forms available)
  • Rent will be apportioned for any rent paid by your tenant beyond the Settlement date

Settlement

  • We collect the purchase money and rates adjustment on your behalf on the Settlement date from the purchaser’s lawyer
  • We simultaneously authorise the release of the key and title to the property to the purchaser’s lawyer
  • We then repay any mortgage debt on the property
  • We then pay rates/insulation/clean heating loans
  • From the funds that remain we take our costs and deposit the net balance of the funds remaining into your nominated account or as otherwise instructed by you