First Home Buyers Club Blog

Schnauer & Co deal with many first home buyer enquiries. Often first home buyers don’t know where to start or when they are ready to make their first offer. As a first home buyer, there is often so much information to process, that it can feel overwhelming. Whether it’s in relation to the steps that need to be taken, legal terminology or understanding the different types of properties out there. Because first home buyers can incur substantial costs during this process, we often suggest that clients make an offer on a property only once they are truly ready and with a condition that allows them to undertake their due diligence (including legal advice) after any offer is accepted to avoid unnecessary costs.

Here's a step-by-step guide of how to approach making an offer on your first home:

Picture this: a classic showdown between neighbours, with the humble fence caught in the middle.  This has the potential to turn nasty so read on to get an understanding of the laws around fences.

According to the Building Act 2004, you're free to erect a fence under two meters high without the need for any council green light. Simple, right? Wrong. It's not all smooth sailing when land covenants swoop in, dictating everything from height to colour. And if your house falls under the historic heritage category, brace yourself for more restrictions.

Every so often, Schnauer & Co will have enquiries from clients about an encroachment that they have become aware of, many years after purchasing their property.  For example, you have your land surveyed and find out that your neighbour has built a fence, not on the boundary, but actually on your land.  Or there is a structural addition that extends beyond the legal property boundaries. Usually this is picked up when owners are selling (during the purchaser’s due diligence) or if they are considering subdivision/construction of any extensions or additions.  

Schnauer & Co have previously addressed this in article “Breaking down the sale and purchase agreement” back in 2018. However, there have been many changes to the agreement since then.  We are currently up to the eleventh edition 2022 (3) of the ADLS/REINZ Agreement for Sale and Purchase. It is best for you to use this form when making an offer by negotiation or, if the sale is by way of an auction, ADLS/REINZ have produced a separate agreement for auctions (the Sixth Edition 2022 (2)). If you are attending an auction then we recommend that you refer to our article “Purchasing A Property At Auction”.  

We have previously addressed this topic in our article “5 Creative Ways to Get into Your First Home” which was published on our blog last year.  Since then, we have noticed that this topic has been in the media and it appears that first home buyers (“FHBs”) raise concerns about this option being too restrictive or complicated. It also appears from social media posts that there is a major lack of understanding when it comes to the current Bright-line rules.  Generally, there is also a lack of knowledge in relation to how a property sharing agreement (“PSA”) can make a group purchase less complicated.  

Schnauer & Co Lawyers covered the various changes to the current ADLS Agreement of Sale and Purchase of Real Estate (Eleventh Edition) 2022, in our article “Legal Toolkit: Expert Tips for First Home Buyers – Part 2”.

The team at Schnauer & Co's have put together a resource toolkit to highlight some of the common misconceptions that some first home buyers have and provide you with tips on how to avoid some easy mistakes when buying your first home. Our expert tips will be presented over six easy to read articles, and they are all designed to help you achieve your goal of homeownership in NZ. 

The team at Schnauer & Co's have put together a resource toolkit to highlight some of the common misconceptions that some first home buyers have and provide you with tips on how to avoid some easy mistakes when buying your first home. Our expert tips will be presented over six easy to read articles, and they are all designed to help you achieve your goal of homeownership in NZ. 

The team at Schnauer & Co's have put together a resource toolkit to highlight some of the common misconceptions that some first home buyers have and provide you with tips on how to avoid some easy mistakes when buying your first home. Our expert tips will be presented over six easy to read articles, and they are all designed to help you achieve your goal of homeownership in NZ. 

The team at Schnauer & Co's have put together a resource toolkit to highlight some of the common misconceptions that some first home buyers have and provide you with tips on how to avoid some easy mistakes when buying your first home. Our expert tips will be presented over six easy to read articles, and they are all designed to help you achieve your goal of homeownership in NZ. 

In the first 2 parts of the series, we discussed the solicitor approval condition and the process to follow when you are not able to satisfy conditions in the agreement for sale and purchase.

In this Part 3, we will highlight the differences between a loan from parents vs a gift from parents (AKA the bank of Mum and Dad).

As always we recommend getting good independent legal advice.

Don't forget to take advantage of Schnauer & Co's First Home Buyer Member Offer for a free 60 minute consultation.