The Issue with New Zealand Lawyers and Real Estate Agents - Sale and Purchase of Property

I just returned home after a dinner meeting with a friend.  As usual most of our conversations were regarding the recent Canterbury earthquake and the New Zealand economy. We also talked about the New Zealand property market and that is when she told me what a hard time she had with the purchase of her new property.

She seemed to have endured problems after problems from the initial stages starting with her real estate agent and then her lawyer.  Her real estate agent was very keen to conclude the deal by making promises he could not keep. You see, all the real estate agent wants from you is to declare that the agreement has gone unconditional.  Because, that is when he becomes entitled to his commission which subsequently is released to him 10 working days thereafter.

As for her lawyer, he was more keen on satisfying the needs of the real estate agent because the real estate  agent referred the matter to him.  The real estate agent was one of his sources of his clients.  The lawyer also slacked in many areas.  He was late in attending to the LIM (Land Information Memorandum) conditions, Builders Report and some other matters.  When push comes to shove, everyone started to point fingers at each other.

Finally, the transaction did settle but my friend had to fork out some money to rectify some of the damages which could have been avoided had her lawyer attended to his work diligently.

It is strange in New Zealand because, in almost every transaction it is the real estate agent who prepares the Sale and Purchase agreement for the vendor and purchaser to sign.  Only a prudent vendor or purchaser refers the agreement to a lawyer for advise, prior to signing it. This in my opinion is a serious issue which the New Zealand Law Society has to raise.

My advise as a lay person is chose a lawyer who has been recommended to you by someone who is a happy client of the lawyer.  Also bear in my that you cannot judge a lawyer's capability and commitment on your first meeting with him/her.  Remember that if you are not satisfied with your lawyer and not sure what to do, you can always call the New Zealand Law Society and ask for their advise.