What is a Pre Purchase report?
A winning bid at auction or entering into the unconditional contract will normally create a binding agreement to buy that property and you usually need to pay a 10% deposit on the day.
There will be no going back if you get cold feet after the hammer comes down. A prudent purchaser should ideally undertake all the necessary checks and enquiries before the day of the auction to avoid any nasty surprises. The legal aspect of these checks is the Solicitor’s pre-purchase report.
The auction agreement contains a clause which states that the purchaser is deemed to have accepted the vendor’s title to the property and the purchaser may not make any requisitions or objections as to title. This means that if the purchaser has not completed all the necessary checks before the auction, they may have no legal right to make a claim against any defect in title.
What is included?
Our pre-purchase report may include:
A title search of all interests
Advice on issues associated with titles, particularly leasehold, cross lease and unit titles, which cannot be requisitioned
An explanation of the effect of any relevant interests, restrictions or encumbrances on the title
A copy of the satellite photo (if available) so that you can easily identify the correct property on a suitable plan.
Summary of the LIM report in plain language (a copy of the LIM report must be provided)
Advice on the LIM report such as the zoning of property, the proper obtainment of building consents for additions or alterations and the payment of rates or public works in the area etc.
Review of the current period’s body corporate minutes and the body corporate rules;
Please read the important information contained in the following:
- We note that our estimated fixed fee does not include any cost of negotiations/disputes with other parties and we reserve our right to charge any cost incurred for our extra attendances at our discretion. The cost of extra attendances will be charged on the basis of our time records.
- Terms of engagement.
- Our quote is subject to change at any time. If you wish to validate this quote for 3 months you must register the quote to our Honour system. You can simply click “Register” button after completing this form or call us on 0800 000 608.
- We note that our estimated fee may be changed if the actual information is different to what you have provided to us. Our final fee will be confirmed once we obtain a full information from all associated parties.
- In providing the Services we may incur disbursements and payments to third parties on your behalf. You authorise us to incur these disbursements (which may include such items such as search fees, court filing fees, registration fees and travel and courier charges) which are reasonably necessary to provide the Services. You also authorise us to make payments to third parties on your behalf which are reasonably required to undertake the Services (which may include items such as experts costs or counsels fees). These will be included in our invoice to you, shown as disbursements when the expenses are incurred (or in advance when we know we will be incurring them on your behalf).
- In addition to disbursements, we may charge a minimum fee of $35 or 3% of our invoice (whichever is higher) to cover out of pocket costs which are not included in our fee and which are not recorded as disbursements. These include items such as AML/CFT verificiation processing fees, photocopying and printing, postage and phone calls.
- Due to the Anti-Money Laundering and Countering of Financing of Terrorism Act 2009 (AML/CFT) and other related legislation, as of 1 July 2018, we are obligated to obtain and keep records of information from you (as our client) for matters we work on such as your identity, address, beneficial ownership of real and personal properties and source of funds. We thank you for your cooperation in advance.
- We require you to arrange the payment for our prepaid legal services in advance either by credit card* or direct debit to our solicitor’s trust account. We accept Visa and Mastercard. *For all credit card payments, there will be 2.88% transaction fees applied on top of our total legal service fees.