As stated earlier, there are no restrictions on the purchase of real estate in New Zealand for foreigners. According to the law, the purchase of housing must necessarily be in writing.
In the country there are several options for formalizing the transaction:
- Option. If the investor has decided on the choice of the object, but for some reason can not yet conclude a deal with the seller, he has the opportunity to conclude an option. Under the option is an agreement, according to which the seller during the period established by the two parties does not have the right to offer this object of real estate to other buyers. An interesting point is that an option is not a guarantee of purchase. After the expiration of the set period of time, the investor can withdraw from the transaction. The option is always paid by the buyer;
- Limited Offer. This type of transaction implies an agreement between the two parties that the buyer undertakes to pay for the property on a certain date. In this case, the investor can not simply refuse to buy, for this he will have to pay a penalty. The time before the set payment date gives both parties the opportunity to finalize all the necessary documents;
- Full Offer. A sale and purchase transaction without any additional conditions. With this option, the lawyers of both parties check the deed of sale and agree on all the details. Once the contract is signed, it is impossible to cancel the purchase of the real estate object.
In addition to this expense, the buyer is also required to pay a lawyer, the average amount is 250 dollars
If the final offer is realized, the buyer is obliged to pay the homeowner a deposit. Usually it leaves 10% of the value of the property. Of course, the amount is not paid directly to the seller. It is credited to a special bank account of the real estate agent involved in the transaction. Only after the entire sale procedure is finalized, this amount is transferred to the seller. Often an agent’s commission of approximately 5% is automatically deducted from this deposit.
