Should I buy a doerupper as a first home?
conversations with the real estate licensee acting for the vendor about the condition of the property. Be sure to get confirmation in writing of what you discussed, and what issues have been disclosed to you.
It may be reasonable to expect that when a property is being marketed for its renovation potential, the vendor and their real estate licensee will have endeavored to gain a thorough understanding of its condition.
However, real estate licensees are not building and construction experts. While detailed conversations with the vendor or their licensee are important steps towards knowing the property, REA advises buyers to also get their own professional advice and information.
CHECK THE PAPERWORK
You can obtain a Land Information Memorandum (LIM) about a property from the local council – this provides a summary of property information they hold, which can include permits and consents granted for any work on the property, information on the area’s flood risk and zoning information.
You should also undertake a title search with Land Information New Zealand (LINZ) for detailed information on the property, such as the type of ownership, boundaries and any rights or restrictions. You might also like to use Toka Tū Ake EQC’s new Natural Hazards Portal – you can look at past EQCover claims to see how previous events have impacted a property.
GET PROFESSIONAL ADVICE
You can obtain all the important documentation yourself or engage a lawyer, or conveyancer, to help you. For example, they can review the relevant documents to help you understand details and identify risks. They will also guide you through the Sale & Purchase Agreement and the settlement process later.
Also consider obtaining a building report from a qualified and accredited property inspector. While always highly recommended, this report is essential when buying a renovation project. Sometimes vendors may provide a recent building report, but it’s important to know that getting your own inspection provides you with more legal protection if things were to go wrong later down the road.
Once you have in-depth knowledge of the property’s condition, you may also want to get advice from a builder (or builders). They can help you get a sense of the time and costs involved in getting the property to the condition you want it to be in.