How to buy a house when you're not confident communicating
Belinda Moffat is the chief executive of the Real Estate Authority. She answers your house buying and selling questions.
What an exciting time for your family! No doubt your parents are grateful for your support.
Please assure them they aren’t alone in feeling some uncertainty; it’s very normal, especially among first home buyers. When English is not your first language, naturally it can seem all the more challenging, particularly given the legal papers to be considered.
The key will be ensuring your parents have the information they need to make important decisions with confidence during their home buying journey.
CONSUMER INFORMATION AVAILABLE FROM REA
In addition to licensing and regulating the conduct of real estate agents (licensees) on behalf of the
REA chief executive Belinda Moffat says it’s normal for buyers to feel some uncertainty, especially if it’s their first time.
New Zealand government, we at the Real Estate Authority (REA) also support and protect real estate consumers from across our diverse communities.
I recommend you make your first stop at our consumer information website Settled.govt.nz. Here, you will find detailed and independent information and advice on buying and selling property, whether through a real estate agency or private sale. This site is in English but uses plain and simple language.
REA’s translated consumer guides cover the property buying process, agency agreements and sale and purchase agreements. Depending on your parents’ first language, these guides will be useful as they impart important aspects of the transaction process.
These guides are currently available in seven languages – English, te reo Māori, Hindi,
Korean, Samoan, Simplified Chinese and Tongan – and can be found on the settled.govt.nz and rea.govt.nz websites. When your parents are ready to buy a property, REA requires the licensee to provide them with a copy of our guide to the Residential Sale & Purchase Agreement (and give them reasonable opportunity to read it before they sign one).
This guide must be provided in English, and you can request a copy in any of the other languages if it would be useful.
Q: My parents have been living and renting in New Zealand for many years, but they are now ready to buy a house for the first time. They are very excited, but also nervous.
While they both became New Zealand citizens years ago, English is their second language, and they aren’t confident communicating where things like contracts and speaking with real estate salespeople are involved.
They’ve asked me to help them with the transaction process, which I’m more than happy to do, but I also want to make sure that we understand as much as possible along the way so that they feel in control, despite any language barriers. Do you have any advice for us?
BELINDA MOFFAT: SUPPORT FROM PROFESSIONAL ADVISORS
As buying property is a significant financial decision, REA recommends all consumers consider gathering a support team of trusted professionals.
This could include a qualified and accredited property inspector to check the condition of a property before purchase, as well as a lawyer or conveyancer to help manage the legal details. There is a cost for this professional support, but it is a good investment.
Getting sound professional advice can be far cheaper than the cost of things going wrong.
To further support your parents, you could look for professionals who speak their language. The New Zealand Law Society may be able to assist you in finding a lawyer who fits this description.
WHAT ABOUT THE REAL ESTATE AGENT?
Real estate licensees also come from a range of backgrounds and there are some who may be able to communicate with your parents in their language. It is important to note however, that
The transaction process for buying a house can be a challenge. Help is at hand. while REA’s Code of Conduct for licensees says a licensed real estate professionals must “act in good faith and deal fairly” with all parties to a transaction, they work on behalf of their client.
Their client is whoever is paying their fee or commission, usually the person selling the property (the vendor). While it is normal and appropriate for a licensee to be friendly and build a rapport with prospective buyers such as your parents, they are legally obliged to seek the best possible outcome for their client.
It is possible to engage your own real estate licensee (perhaps one who speaks your parents’ language) to work on your behalf as a buyer's agent, but your parents would then be the ones having to pay for the agent’s services, so be sure to fully understand what those costs will be before going down that route.
Finally, one of the essential things to remember about real estate licensees is that, in New
Zealand, they are regulated by REA, the independent government conduct regulator. Parties can complain to us if concerns arise from the conduct of the licensee. I’ve referred to the Code of Conduct above, which is a detailed set of rules REA oversees, and which licensees must abide by. You can find these rules on our regulatory website, REA.govt. nz, and licensees must give you a copy if you ask for one.
While it may seem daunting at first, I am sure that your support, combined with sound professional advice and REA’s consumer information resources, will be invaluable in helping your parents navigate their journey to homeownership with confidence. I wish you all the very best.
For more information about the process of buying or selling property – and what to expect when working with a real estate professional – visit settled.govt. nz. Have a question for Belinda? Email homed@stuff.co.nz.
Licensed REAA 2008
Location: Karapiro
Address: 1829B Tirau Road, Karapiro
Bedrooms :4
Bathrooms: 2
Living: 3
Approximate size: 292sqm (floor), 2.2160ha (land)
For sale: by tender
Viewing: by appointment
Agent: Lesley Acutt and
Michelle Van der Park
Phone: Lesley 021 994 440 and Michelle 027 224 2066
Email: lesley.acutt@nzsir.com and michelle.vanderpark@nzsir.com