What to Check Before Buying a Home?
Purchasing a home is both exciting and daunting. Whether you’re a first-time buyer or returning to the market, New Zealand’s unique housing conditions and legal requirements deserve careful attention. Checking the right things before committing can save you trouble down the line and ensure you are making a sound investment for your future.
Title and Legal Due Diligence
One of the first and most important steps is to make sure the property has a clear legal title. You’ll want to know who owns it and if there are any rights of way, covenants, easements or restrictions associated with the land. It’s essential to have a lawyer or conveyancer review the Certificate of Title as well as the Land Information Memorandum (LIM) provided by the local council. The LIM details resource consents, zoning, outstanding rates and council requirements (for example, whether any unapproved building work has been carried out or if future developments might affect your property).
Building Inspection
In New Zealand it is strongly recommended to get an independent building inspection, also known as a pre-purchase inspection or builder’s report. This report will assess the condition of the house including the structure, roof, foundations, plumbing, electrical work, insulation and any signs of dampness, rot, or leaks. With some homes, especially those built between the 1990s and mid-2000s (“leaky homes” era), hidden moisture problems can lead to costly repair bills. A thorough inspection can highlight issues you may not spot yourself and inform your negotiations or decision-making.
Methamphetamine (P) Testing
Meth contamination is a concern in some New Zealand homes as residue from production or heavy use of “P” can be harmful to occupants and expensive to remediate. While it’s not a requirement many buyers choose to have a meth test carried out for peace of mind.
Council Records and Compliance
Check that all modifications and additions to the property have the necessary council consents and Code of Compliance Certificates (CCC). If a deck, sleepout, garage or extension was built without consent you could face hefty costs to get these approved (or worse, orders for removal!). Your lawyer and the LIM report can help uncover any red flags here.
Body Corporate and Fees (If Buying an Apartment or Unit)
If you’re considering an apartment or unit title property it’s important to review the body corporate records. Check the fees, rules, maintenance plans and whether there have been (or could be) any large upcoming expenses, such as exterior repairs or upgrades, to shared facilities. Knowing these details helps you assess the true cost of ownership beyond purchase price alone.
Location and Surroundings
Location has a major influence on your lifestyle, future property value and insurance. Be conscious of proximity to schools, transport, shops and services as well as factors like flood risk, erosion or earthquake-prone zones. A visit at different times of the day can give insight into noise, traffic or sun exposure.
Insurance and Risk Assessment
Before you buy check that you can obtain insurance on the property. Some homes, especially those with previous damage, in high-risk earthquake zones or with complex construction, may be difficult or more expensive to insure. Confirm with your insurer early and ask about any restrictions.
Understanding the Sale and Purchase Agreement
Every home purchase in New Zealand is formalised through a Sale and Purchase Agreement. This legally binding contract outlines the conditions of sale such as finance, building inspection, LIM, settlement date and chattels. Your lawyer will ensure that suitable conditions are included to protect your interests. Do not sign anything you don’t fully understand.
Finance and Hidden Costs
Arrange your finance before making any offers. Know your deposit, maximum budget and how much you can afford for rates, insurance, maintenance and body corporate fees if applicable. Be aware of extra costs such as legal fees, building inspections, valuation fees and moving costs. Getting pre-approved for a loan can make the process smoother and more certain.
Taking an Informed Approach
Buying a home is about more than just falling in love with a property. It’s about making considered choices and protecting yourself and your investment. Taking the time to check the legal, structural and financial aspects carefully can spare you from future headaches and give you the confidence to proceed and truly enjoy your new home.