Alert Level Four Buyer

Buying a property and don’t know what this means for you in Level 4? Check out our Buyer FAQs and get in touch with your agent who can help guide you through.

Q. MY OFFER WENT UNCONDITIONAL BEFORE LOCKDOWN, WHERE DO I STAND?

A. Where attainable, the Land Authority (REA) prescribes that the two parties should agree to postpone the settlement until alert level three.

There is quite likely a clause in your purchase and sale agreement that states how a settlement should be reached if the alert level changes. If you are unsure about this, speak to your agent.

During alert Level Four, buyers wont be able to move into a property. The only permitted movement is to access essential services. The settlement may continue in the event that it doesn’t involve anyone moving.

The following cases would allow settlement to take place during alert Level Four:

– The vendor stays at the property on a rental premise.
– Mutual consent between the two parties to share late settlement interest fees.
– The vendor leaves money in the sale for later payment.

Be prepared to experience some delays during this time as most banks, legal representatives and LINZ are working remotely during alert Level Four.

Pre-settlement inspections cannot be performed at alert Level Four. REA recommends delaying pre-payment inspection to alert level three. Pre-settlement inspections might be possible through video footage. However there are risks involved and it’s advisable both parties seek legal advice regarding this. This type of inspection may not detect the problems you see when you physically inspect the house.

Please note that the purchaser’s circumstance might change. If the buyer’s purchase is conditional on the sale of their home, they cannot resolve it in their transaction if they cannot physically move out of their home. Please consider the buyer’s situation and needs.

Q. BEFORE LOCKDOWN I PLACED A CONDITIONAL OFFER ON A PROPERTY. HOW WILL THE OFFER BE IMPACTED?

A. Your agreement will likely include a COVID clause stating what will happen in this scenario. Best to speak to your agent and solicitor regarding your specific situation.

If you made a conditional offer to a seller, it’s likely you won’t be able to meet your terms during the lockdown. Non-essential services, such as property inspectors are closed or unavailable at alert Level Four. It’s also possible that the seller won’t be able to meet your requirements at this time.

Q. I’M STILL LOOKING FOR A HOUSE TO BUY, WHAT SHOULD I DO NOW?

A. Open homes and private viewings are not permitted at alert Level Four. Our agents, as well as specialists such as property inspectors and valuers, are not permitted to visit properties in order to appraise them and report any potential concerns to buyers. Contact the listing agent for any home you’re interested in, and they’ll be able to tell you what digital opportunities are available.

Q. I HAVE A FEW OTHER INQUIRIES, WHO CAN I ASK?

A. Please feel free to contact your agent directly. We all work remotely and are able to assist around-the-clock.