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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 14769
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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We are selling a section (no dwelling) near Ohakune. Who

Customer Question

We are selling a section (no dwelling) near Ohakune. Who should pay the legal fees for conveyancing - us or the purchaser? And are you able to give us an estimate of those fees that we will be liable for? Also, as the would-be purchaser has proposed unusual
terms, 10% deposit now and the balance in 2 years time, is there any way we can run a credit check on him and/or get some sort of guarantee of eventual payment?
Submitted: 2 years ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 2 years ago.
Normally each party pays their own fees on a sale. There is nothing to stop you asking for the purchaser to pay your fees however, although it would be unusual. If this is a credit sale, then you must get a vendor mortgage signed to protect your interest, and it is in that case usual for the borrower to pay for the fee for preparing the mortgage. The fees for the sale range around $400 to $1000, but for an empty section should be in the lower range. The fee for the vendor mortgage will be around $600, depending on the details required.
Expert:  Chris The Lawyer replied 2 years ago.
You could ask for a credit check, but if you have a mortgage on the property, and he defaults, you can re sell the property to pay for the mortgage. As an alternative, you could agree not to transfer the title until he has paid in full, and he would then register a caveat to show his interest. The cost would be much the same as a mortgage however.

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