What is a Pre Purchase report?
A winning bid at auction will create a binding agreement to buy that property and a 10% deposit is usually paid 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 includes:
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 is provided to us by the client)
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.