Do I Need a Solicitor When Making an Offer?
As your mortgage adviser, HelloYello is your first line of defence in getting your home buying journey started on the right foot. We’ve helped hundreds of clients with varying needs, guiding them through the process from start to finish.
But here’s the thing: We are not legal experts.
A solicitor is your last line of defence and a vital part of protecting you when buying a property. You must have a solicitor involved at some point during the process, but the big question is:
When is the right time to engage one?
The earlier, the better. Generally, the sooner you speak with a solicitor, the more value and protection you’ll get.
When you sign a Sale & Purchase Agreement, you’ll need to include your solicitor’s details. So, by this stage, you must have engaged a solicitor in some capacity to move forward.
Conditional vs Unconditional Offers:
- Unconditional offer: This is like bidding at auction. When your offer is accepted, there’s no going back. You effectively own the property pending settlement. In this case, you need your solicitor to do all the legal due diligence before making the offer. This is in addition to having your finance, building inspections, and other checks lined up.
- Conditional offer: This is an offer with conditions attached (such as finance approval, building or LIM reports, legal review, or all of the above). Here, you have the advantage of satisfying these conditions after your offer is accepted. Your solicitor’s main work typically starts once the contract is in place, although you should still run things by them before the agreement is signed.
Why Talk to a Solicitor Early?
One of the biggest benefits your solicitor provides is helping you understand negotiation, crafting your initial offer, and choosing the right conditions tailored to your situation. It almost always pays off to get legal advice before making an offer, even if it’s conditional.
Setting the right conditions is crucial
You’re entering a legal contract, and if you don’t have the proper safeguards to exit the contract if things go wrong (like finance falling through or problems with the property), it could cost you dearly.
You may also need adequate time to apply to withdraw your Kiwisaver, if you need that to pay the initial deposit.
Costs and Support
Yes, solicitors cost money. But this could be the most valuable investment you make in your home buying journey. Plus, you may be eligible for a cash contribution from the bank to help cover some or all of your solicitor’s fees.
If you’d like, we are happy to refer you to our trusted legal partners who understand this process inside and out and have got your back!
