Kiwisaver and Kāinga Ora
Your solicitor will be involved in the process of applying for your Kiwisaver withdrawal and Kāinga Ora First Home Grant. They will liaise with you and the providers to ensure all the documents are correct and the funds are released before settlement. You can read more about Kiwisaver and Kainga Ora here.
LINZ and E-dealings
You might hear your solicitor refer to “LINZ”, “LandOnline”, or “Land Information”. These all refer to Land Information New Zealand, which is the system where property ownership is recorded. It is where your solicitor will obtain your title search and other information.
Before settlement, your solicitor will correspond with the vendor’s solicitors to create what is known as an ‘E-dealing’ on LINZ. In this dealing, your solicitor will ensure that your details which will be noted on the title (e.g. your name and your mortgage details) are correct. Your solicitor is also required to enter tax information relating to you and your purchase, and to prepare forms for you to sign in order to settle, such as:
- Authority and Instruction Form: this gives us your consent to make the changes to the register on your behalf
- Land Transfer Tax Statement: this is required under the amended Land Transfer Act by every person in a sale or purchase.
- Overseas Investment Office: this confirms whether or not you are considered an ‘overseas investor’ (in which case you would need special consent to purchase).
When we have met you to witness you signing these documents, we will then ‘certify and sign the e-dealing’. There are strict laws applying to LINZ e-dealings, so usually a partner of the firm will do this part; every little detail must be checked and given final confirmation.
Home Loan
If you are using a home loan to purchase your property, the bank will send the documents to your solicitor. We will review the documents and send you a summary. When you come into Webster Malcolm’s offices to sign, we will provide further advice and ensure any questions you have are answered. We will also include the information about your home loan in the e-dealing.
Your solicitor will then send the documents to the bank and liaise with them to ensure the money comes into our account for settlement day. Often banks have certain conditions and requirements which need to be met, and we ensure that everything runs smoothly.
Rates and Water
The solicitor acting for the vendor will request the rates and water information for the property, order a final water meter reading, and create a settlement statement which ensures that the rates and water are properly apportioned upon settlement.
The solicitor for the purchaser will review the settlement statement and send it to the purchaser. They will also create a notice of sale to be sent to the relevant authorities (e.g. Auckland Council, Watercare) to let them know that the property has been transferred and the new owner is responsible for the bill.
It can seem a little overwhelming but don’t be put off – our team are here to help you and guide you through the entire process.
If you have any questions about the above feel free to contact Tracy or Sacha