How to buy
Buying an apartment ‘off-plans’ has many benefits but it can also be a new experience for some people. To help make it simple and straightforward, we’ve listed the main steps, how it works and some things to think about.
1. Select your apartment
You may already be well on your way to identifying the apartment that’s right for you. If you are not quite sure, our team will be happy to work with you to answer your questions or meet in person for a private appointment.
2. Secure your apartment
Once you have selected your apartment, you should sign a conditional Agreement for Sale & Purchase which gives 5 working days for you and your Solicitor to carry out due diligence.
As part of this step, we will work with you to prepare an Agreement for Sales & Purchase.
Some things to note:
- If more than one person is purchasing an apartment (e.g. a couple), all purchasers will be required to sign the Agreement for Sale & Purchase.
- If the Agreement for Sale & Purchase is to be signed under a Power of Attorney, then your solicitor will need to provide a copy of the Power of Attorney and Certification of Non-Revocation.
- If the Agreement for Sale & Purchase is for a company, then all Directors of the Company will need to sign the Agreement for Sale & Purchase.
- If the Agreement for Sale & Purchase is for a trust, then all Trustees will need to sign the Agreement for Sale & Purchase.
- If you are using any Kāinga Ora or other Government assistance, such as First Home Grant or First Home Partner, or using your KiwiSaver for the deposit, you should let us know and provide details of this including any time requirements relating to the release of funds for the deposit.
3. Have your solicitor review the agreement
During this time, your solicitor will review the Agreement for Sale & Purchase. If applicable, you can discuss finance with a bank or mortgage broker and you can ask us further questions about Elevation. If further amendments to your Agreement for Sale & Purchase are needed, this is the time to work with us to make them.
If you are using Kāinga Ora or KiwiSaver funds, you will need to provide the relevant organisation with a copy of your Conditional Agreement for Sale & Purchase as part of the approval process.
4. Execute the agreement & pay deposit
If you decide to proceed with the purchase, your Solicitor will send the Development Solicitor an Unconditional Notice and the 10% deposit is due. The deposit will be paid through your solicitor and will be held in the secure Trust Account of the Developer’s Solicitor, Hornabrook Macdonald.
5. Stay updated during construction
The Elevation and Bayleys team will keep you updated throughout the construction phase to show progress, keep you informed about any important decisions, and help you plan for the settlement and move-in process when it arrives.
As settlement approaches, our team will ramp up the communication frequency to help you get acquainted with the process leading up to settlement. There will also be an opportunity to view your new apartment at a pre-settlement inspection. Guided tours of the wider Development will be offered around move-in date and you will receive a detailed living guide that covers all you need to know about living at Elevation.
6. Final payment
On receipt of the Code Compliance Certificate(s), Certificate of Practical Completion, and Record of Title, a Settlement Statement is issued and payment of the remaining balance of the purchase price, less deposit and any interest accrued on the deposit (once resident withholding tax and fees are deducted), is made.
In addition to the settlement statement, a pre settlement disclosure statement will be provided, which will include council rates share, final Body Corporate Levy details, and final Body Corporate rules.
To make sure of a smooth transition, you will also receive contact details for the key people along with an explanation of who is responsible for what.
How do Agreements for Sale & Purchase work for off-plan purchases?
When buying off-plan there are differences between the Agreement for Sale & Purchase that is used, compared to Agreements for existing residential homes. Here is an explanation of some of the different terms that are used.
Development Approval Date
This is the date by which the Developer must inform you that the Development will be proceeding, this being the date by which the Developer achieves approval from the funder. This typically means the Developer has sold the required number of apartments and met all the funder’s terms including signing a construction contract.
To protect you and make sure that you do not have to wait indefinitely for your new apartment to be built, the Developer is legally required to put a sunset date in the Agreement for Sale & Purchase. If your apartment is not completed by this date, then you may cancel your Agreement for Sale & Purchase and your deposit and the net interest earned are refunded.
Under the Building Act 2004, a 12-month maintenance period is applicable. If defects in the building work (other than general wear and tear) emerge within 12 months of practical completion, subject to certain exclusions as set out in section 362S of the Building Act such as defect caused by failure to carry out normal maintenance, the Developer and Construction company have an obligation to fix such defects in a reasonable time.
The outline specification is the portion of the Agreement for Sale & Purchase that provides a description of how Elevation will be built. It describes the method of construction as well as the interior fit-out, including what appliances are supplied with each apartment. All plans and details are subject to the terms and conditions of the Agreement for Sale & Purchase.