Settlement Day – and the House is a Tip!

September 20, 2019

in Property

Moving is stressful enough without the added hassle of having to deal with rubbish left at your dream property by the previous owner.

Carrying out a pre-settlement inspection can go some way to avoiding this.  Be mindful though, that this is best carried out at least 2 working days prior to settlement so that if there is an issue, there is time to deal with this under the Agreement for Sale and Purchase.

Under the Agreement, you can claim for compensation in relation to a rubbish issue, if the property and chattels are not in the same condition as when initially viewed and the Agreement signed.  It is important to note that although you can claim for compensation, you cannot refuse to settle.  Refusing to settle could result in the vendor seeking damages and/or compensation against you.

Any pre-settlement claim for compensation must be made at least one working day before settlement.   Both parties must agree on the amount of compensation.   If they agree, the amount of compensation is deducted on settlement.  If they cannot agree, an independent experienced property lawyer is appointed by the parties, with their costs met equally by the parties.  The independent lawyer acts as stakeholder to hold the amount claimed in compensation. 

Pursuing compensation through the courts after settlement can be costly.  The easiest way to avoid this is to plan ahead, and if the property is in disorder, insert an appropriate clause into the Agreement for Sale and Purchase.  We can assist by providing the best clause for your needs.  Remember, this needs to be inserted into the Agreement before you sign.

If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:

Carol Allen
callen@farry.co.nz
09 353 6675

The information contained in this publication is intended as a guide only.  It does not constitute legal advice and should not be relied upon as such.  Professional advice should be sought before applying any of the information to particular circumstances.  While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain. 

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