Buy­ing a home made eas­ier

Kapi-Mana News - - OPINION -

Buy­ing a new home may be one of the big­gest fi­nan­cial de­ci­sions you make.

You must have a lawyer com­plete cer­tain doc­u­ments and the trans­fer, but there is a lot you can do your­self to man­age the move.

To help it go smoothly you need to con­sider sev­eral things to make sure ev­ery­thing is ready for the big shift.

We have pre­pared a ‘‘to do’’ list to help make the tran­si­tion into your new home or­gan­ised and less stress­ful:

Sale and pur­chase agree­ment

Has your lawyer checked your sale and pur­chase agree­ment be­fore sign­ing?

Have ap­pro­pri­ate clauses been in­cluded in the agree­ment (for ex­am­ple, fi­nance, builder’s re­port, LIM re­port, cer­tifi­cate of ti­tle)?

Have you ob­tained fi­nance from your bank?

Have you ad­vised the bank of your lawyer’s con­tact de­tails?

Have you or­gan­ised a builder’s re­port?

Have you ar­ranged insurance for your new home?

Have you or­gan­ised your insurance com­pany to send a cer­tifi­cate of insurance to your lawyer?

Have you no­ti­fied your lawyer that all con­di­tions have been sat­is­fied? Pre-Set­tle­ment In­spec­tion Have you ar­ranged a pre­set­tle­ment in­spec­tion with the real es­tate pro­fes­sional?

Have you ad­vised your lawyer of any mat­ters aris­ing from the in­spec­tion re­quir­ing any ac­tion? Set­tle­ment Have you for­warded your de­posit to your lawyer?

Have you ad­vised your lawyer what your con­tact de­tails will be on set­tle­ment day?

Have you signed the mort­gage or trans­fer doc­u­ments?

Have you ar­ranged for col­lec­tion of the keys? Mov­ing House Have you ar­ranged movers? Have you started pack­ing things you won’t need be­fore mov­ing?

Have you se­lected a room in which you can store all your packed boxes?

Have you given writ­ten no­tice to your land­lord (if ap­pli­ca­ble)?

Have you made a record of mail for no­ti­fy­ing change of ad­dress?

Have you no­ti­fied your tele­phone, power and gas com­pa­nies of the date you are mov­ing?

Have you no­ti­fied your tele­vi­sion ser­vice for trans­fer (if ap­pli­ca­ble)?

Have you ar­ranged care for your chil­dren/pets for the day you are mov­ing?

Have you col­lected change of ad­dress cards?

Have you ar­ranged re­di­rect­ion for your mail?

No­tify the fol­low­ing of your change of ad­dress: Your bank. Your credit card com­pany. Hire pur­chase com­pa­nies. In­land Rev­enue. Elec­toral Depart­ment. NZ Trans­port Agency Af­ter the ar­ti­cle about trusts, J has fur­ther ques­tions. Are trusts a le­gal en­tity, like a com­pany?

No, trusts are not le­gal en­ti­ties; they are eq­ui­table en­ti­ties. Trust as­sets are held by the trustees on be­half of the ben­e­fi­cia­ries. All as­sets owned by a fam­ily trust will be recorded as owned by the trustees ‘‘as trustees of the Smith Fam­ily Trust’’ rather than by the Smith Fam­ily Trust.

Does a trust pay tax on its earn­ings/as­sets?

Yes, there is a trust tax rate (cur­rently 33 per cent). Trusts can file tax re­turns and pay in­come tax.

The ar­ti­cle re­ferred to the as­sets of the trust be­ing ‘‘held sep­a­rately for those for whom the trust has been es­tab­lished’’. What does this mean?

This means that the trustees of the trust hold as­sets in their names on be­half of the ben­e­fi­cia­ries.

The as­sets are trans­ferred from the names of those who are set­ting up the trust to the trustees.

The trustees are re­spon­si­ble for mak­ing de­ci­sions on be­half of the trust.

The trustees must al­ways con­sider the best in­ter­ests of the ben­e­fi­cia­ries.

Who con­trols ad­min­is­tra­tion?

The trustees are the ones in charge of ad­min­is­ter­ing a trust and en­sur­ing that it keeps proper pa­per­work, records de­ci­sions prop­erly, has an an­nual meet­ing etc.

There are also usu­ally other pro­fes­sion­als in­volved, in­clud­ing lawyers and ac­coun­tants.

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