Selling your property in 2022

There is a definite chill in the air in New Zealand residential property auctions. Demand has weakened, sale rates are down, and the annual price growth is slowing yet residential property prices remain high. Many vendors are questioning whether now is the right time to sell and some may have no choice.

Do I sell privately or through an agent?

There are advantages and disadvantages to both options; we have covered this in a previous blog. Ultimately, it will depend if you are pressured to sell the property and if you have a realistic price expectation.

You can decide on whether you sell the property via deadline sale, tender, or auction. All of these options will conduct open homes for a set period and then have a date for the deadline sale, tender, or auction. The deadline sale will accept conditional offers and the tender process or auction will usually only accept unconditional offers.

The tender and auction files will usually include a copy of the LIM and building report that has been obtained by the vendor. This allows the purchaser time to conduct due diligence (or their lawyer!) prior to submitting an unconditional tender or offer in writing.

Accepting an offer

Some properties may turn it at auction; however, they may still have interested parties that may not be in the position to put down an unconditional offer. Many purchasers that are obtaining finance may require a valuation for their lender. Hence, they may need to submit an offer that is conditional on finance.

You need to be aware of accepting an unconditional offer with a late settlement date and low deposit. Due to the volatility of the market, you do not want to be in a position where the purchaser fails to settle.

There are actions that you can claim against the purchaser for failing to settle such as;

• Penalty interest
• Claim for loss of the deposit
• Loss of value

However, you need to keep in mind if the purchaser is a company, they may not be solvent at the time of settlement. Hence if they default, you may have very little recourse, if any, against them.

Weston Ward & Lascelles’ team of property lawyers has helped thousands of Christchurch clients successfully buy and sell a property. We urge you to seek legal advice at the beginning of the property selling process to help lower the risk of issues arising and to protect your current and future financial positions.

There are many different elements that influence which is the best course of action, so contact us today to learn how our property legal services can help you.