Why do I need a lawyer when buying a home?

So you're diving into the world of home buying – probably the biggest purchase that you will ever make! Now that you've got your mortgage adviser (that’s us!) in your corner, and the green light with pre-approval, it's time to figure out the next step. And guess what? It involves finding a lawyer to help you wade through the legal waters of home buying or building. 

Your lawyer will handle the paperwork and make sure you're covered when it comes to signing those important documents. Choosing the right lawyer is crucial, though, so keep your eyes peeled for someone who's well versed in property law. There's a lot of law firms out there, so do your homework. Some charge by the hour, while others offer a fixed fee for buying or selling a property. Opting for a fixed fee can be a game-changer, making it easier to budget for your home-buying journey without any surprise plot twists. Make sure you ask your potential law firm about costs upfront, so you're in the know before you begin. In most instances you will be entitled to a cash contribution during the loan process, which will offset your costs of a lawyer.

So what does your lawyer do exactly? They’re the ones looking over and explaining the Sales and Purchase Agreements, checking that everything looks okay on the LIM (Land and Information Memorandum) and  highlighting potential stumbling blocks like cross leases or body corporate fees. Depending on the type of property you are looking to buy, there could be some restrictions. For example many new residential developments have rules around what paint and roof colours you can choose or what kind of fence you can build. If you are buying an apartment, there might be rules around pets in the building or having to get Corporate Body approval before making changes like installing a heat pump. Your lawyer will look over all of these rules and explain them to you before you sign on the dotted line. 

Then there’s the legal lingo, which can be overwhelming to anyone. Your lawyer will explain in plain English what everything means and what you are signing up for. If you have any questions or are uncertain, then be sure to ask as they are there to make sure everything is crystal clear going forward. 

If you are thinking “well this all sounds good, but where do I find a good lawyer?”, then get in touch with the Loan Market Queenstown team. We can put you in touch with the local lawyers that we recommend and will make the sale and purchase easy peasy. Contact us on 03 441 1307 or click here to start your home buying journey.