Do you recall a story in the media about an agent, a sale and a land covenant and why these property information packs will be useful?
To refresh your memory: a land covenant had been registered on the title of a property prohibiting it from being used as flats or as a residence for more than one household unit or for any trading or commercial purpose.
The buyer bought the property then found out about the land covenant. The buyer complained and a disciplinary tribunal hearing resulted.
The tribunal decision was that the licensee should have searched the covenant and been able to explain its effect. The licensee needed to take responsibility for ensuring an explanation was given to buyers. The New Zealand Law Society and REINZ developed a best practice guideline detailing what a licensee ought to do once they get a listing to address this...
Get a copy of the title, figure out whether any registered interest should be brought to the attention of the buyer; and recommend the vendor prepare a pack with information about the property. Alternatively, if the vendor does not want to provide an information pack, the licensee should recommend that the buyer get a pack from an independent source.
Licensees must also comply with the revised Real Estate Agents Act (professional Conduct and Client Care) Rules, which came into force on 8th April.
That pushes consumer protection, although there still needs to be a balance between that and protecting the interests of licensee's vendor clients.
So we believe we have a solution to help you meet all of these requirements.
When you get the listing, you let us know. For a small fee we immediately provide you or the vendor with a mini report identifying things that buyers should be told from the title and the LIM.
We also prepare a full property information pack with the detailed expert advice the buyer needs on the title and the LIM, and make it available on line. These are all prepared by AlexanderDorrington lawyers.
Agents will know what issues should be raised with vendors and buyers, without having to read and interpret the title and Lim reports themselves. Vendors are informed sellers, but without taking on extra liability to buyers.
Buyers get property information packs online, quickly and cost effectively. This is especially useful for auctions.
Whilst we are putting the finishing touches on the website we are running a pilot scheme. If you want to be part of the pilot email us for more information. Numbers are limited.