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  • Originally posted by MajorMoke View Post
    Its a wile since I've paid these fees but I wouldn't have thought $1400 was too bad. Its an important transaction - you want to make sure you get it right.

    I dont understand your delay in settlement date - shouldn't impact legal fees.

    Also not sure about your names on title. An important thing to look at. Matrimonial property law will likely snare you either way.
    Delay in settlement date is due to the recent law changes around the Anti-Laundering Money Act. Lawyers are required to witness that the client physically exists and not someone fictional online from some remote place that has crafted up some fake ID. Likewise in trusts and companies where the directors and beneficiaries of the trust have to be disclosed. So it would make things a lot simpler if the settlement date where to occur when i'm back in NZ.

    Have sent out a bunch of emails to see what conveyance issues are at hand.

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    • Lawyers fees for conveyancing are pretty standard, that's about what I paid as well, and I made my lawyer work for every cent as I had him go over everything, including the full property file, driveway easements, and AML stuff. Its normally a set fee plus disbursements, rather than a time based fee. So it will be the same regardless of your settlement date, or how much work they do on the file (within reason).

      Because there is no mortgage on the property, you won't be using the finance T&Cs, which covers off insurance. However, this means that you have to insert a separate insurance clause yourself. The real estate agent will do this for you. It goes along the lines of "subject to purchaser obtaining satisfactory insurance cover". So insurance becomes a condition of the contract. You then have 10-15 days to sort your insurance out, and if you have any issues, you can pull out of the contract. If you are going fully unconditional as in an auction contract, you should already have insurance in place - ie. have rung an insurer, and gotten a quote from them which is valid for 30 days to accept. You might run into problems here as you want a settlement date longer than 30 days, but this is either something you can negotiate with your chosen insurer, or you take the risk that the quote wont change when you call back to get another quote in July.

      Don't drink and buy shares in a downtrend, you bloody idiot!

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      • Originally posted by SBQ View Post

        Delay in settlement date is due to the recent law changes around the Anti-Laundering Money Act. Lawyers are required to witness that the client physically exists and not someone fictional online from some remote place that has crafted up some fake ID. Likewise in trusts and companies where the directors and beneficiaries of the trust have to be disclosed. So it would make things a lot simpler if the settlement date where to occur when i'm back in NZ.

        Have sent out a bunch of emails to see what conveyance issues are at hand.
        That makes sense. These anti-money laundering laws are a right pain in the arse. I'f only i had enough money to launder!

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        • Ok managed to find a reasonably priced conveyance lawyer. Agent came back agreeing with the side agreement to change the settlement date after I arrive back in NZ. Open home yesterday yield NO visitors. 2 more open homes to go and Auction day on the 23rd.

          KW: re: house insurance. I will sort that out after the settlement date. The vital step 1st is to win the the bid and see if the sellers will accept the outcome.

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          • Originally posted by SBQ View Post
            Ok managed to find a reasonably priced conveyance lawyer. Agent came back agreeing with the side agreement to change the settlement date after I arrive back in NZ. Open home yesterday yield NO visitors. 2 more open homes to go and Auction day on the 23rd.

            KW: re: house insurance. I will sort that out after the settlement date. The vital step 1st is to win the the bid and see if the sellers will accept the outcome.
            Good chance people are looking at the RV and decided that its too high relative to what the house has to offer so no interest in looking further. All adding up to a very low ball offer / bid.

            Agent will be sweating - he will be looking forward to a commision

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            • OK EVERYONE! We bought the house. The negotiation was long and rough. Final price $680K which is $20K under GV.

              Now i'm sure all of you would believe we could of bought for a lot less. The auction there was 1 other bidder that initially put in a $500K bid. My wife went to $600K right away pushing him out. Counter bid $625K and then my wife went to $650K. That was it and went to negotiation. Wasn't quite dramatic as I thought in the bidding as I was listening via Harcourt's online live audio feed + messing the wife. At negotiation, the seller (agent conveying on phone) wanted $715K. Note the GV is $700K and we kept going from $650K to $665K to $675K to $680K. There was a moment wifey was going to walk away but then the listing would gone passed in. But as I said before, the mind of a female is different to the male at auctions. Myself I would of tried to stay at the low end as possible, maybe small increments from $625K to $630K etc.. But then another way is the $650K pushed the other bidder away. After the $680K offer, the auctioneer guy went out to see if anyone else in the crowd would put in an offer - 1 / 2 / 3 HammeR SOLD!

              I think there was like 14 listings that went for auction but only 4 sold under the hammer and rest was passed in. The other 3 that sold was Merivale, Burnside, & Little River, which kinda tells me it's only preferred school zoning or higher income areas that sell in this market condition.

              Here's the thing about auctions - it only takes 1 other person that holds interest wanting to buy, to push the price up. The agent did say you could not build 240m2 house today for less which may be true. But then on the flip side, he was probably telling the Thai sellers that our offer was their best bet.

              Thing is, we know they originally paid $636K back in 2013. At $680K, take commissions, the $8K auction fee package, it could be $40K in commission they would have to pay which basically they made nothing on the sale of the house. They would of been better renting a place without the worry of rates and insurance. Now it's kinda starting to sound like i'm talking prices up. I suppose ideally, we all would like to buy at the lower end.

              One thing certain, wifey no longer dealing with her parents nagging her now they will get their own place. Settlement date mid July.

              Comment

              HLG

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