How to find the right legal expert, get the most out of them and resolve issues that may arise.
Buying a house is a big investment, and there is a lot that can go wrong. A lawyer or conveyancer will be the number one professional in your house-buying journey. They make sense of the process and make sure you understand what you're agreeing to.
Do not sign a sale and purchase agreement without getting legal help first.
Lawyer or conveyancer — which to use
You need a lawyer or conveyancer when buying a house. Which you choose depends largely on how complex your situation is.
Conveyancers and lawyers are both qualified to help with property transactions.
Lawyers and law firms
Lawyers and law firms have a broader range of expertise and can help when things are more complicated, for example selling after a relationship breaks down, or complex finances
Conveyancers
Conveyancers specialise in property transactions only.
Find a lawyer(external link) — New Zealand Law Society
Find a conveyancer(external link) — NZ Society of Conveyancers
Questions to ask
When you think you know whether you want a lawyer or a conveyancer, narrow your search with a few simple questions to make sure they are a good fit for you.
Are they a property specialist?
If they're a conveyancer, property is their main focus. But if they are a lawyer, you want to be sure they are very familiar with property transactions.
Do they have a lot of experience?
Does the company or firm have a good name and reputation?
Some firms have been around for over 100 years. Others may be smaller or newer. Newer doesn't equal bad, but try and find out what customers think of them.
Can they explain things in simple terms?
Do they have time to do the job?
How much do they charge?
Some have a fixed fee, while others charge by the hour. Ask them to explain their fee. If it's a fixed fee, find out how many offers you can make within that fee, for example you may have a number of unsuccessful offers the lawyer works with you on before you succeed in buying a house. This helps you make the most of your time with them and avoid surprise bills. It's important to be aware buying a property is a big investment. The cheapest operator may not always do the best job.
What they do
Property lawyers and conveyancers are the experts in house buying. Unlike the real estate agent, they work for you. They act as your translator and adviser throughout the complex process.
Solving issues with the owner or real estate agent
How your lawyer or conveyancer can help.
Your lawyer can help you through every stage of the home-buying process, from before you sign the sale and purchase agreement to settlement.
Your rights in these stages are different depending on if you bought the house privately or through a real estate agent.
Sale and purchase agreement
They should review the agreement before it is signed. They will want to make sure it contains standard terms, make sure there isn't anything unusual, explain key risks, and make sure the deal is documented correctly.
Record of title
Do a title search and advise you on any information which affects you as the buyer, including easements, covenants, consent notices and other matters.
LIM report and council files
If there is a LIM condition (and even sometimes when there is not) the lawyer or conveyancer should help you order a LIM, and help you review building permits, code of compliance certificates, utilities, supply, and other issues.
Conditions
Most sale and purchase agreements include conditions around a building report, LIM, and sometimes other matters. A lawyer or conveyancer can help with these conditions.
Kiwisaver
A lawyer or conveyancer can help you with both withdrawing Kiwisaver funds and Homestart Grants.
Transfer and mortgage documents
Most property deals include mortgage and loan documents. There are also documents to sign to become owner of the property. Your lawyer or conveyancer should talk you through these in language you can understand.
Settlement day
Ensure the purchase price ends up in the right place.
Get the most out of your lawyer or conveyancer
Engage them early
Find and sign up with your lawyer before you sign any agreement.
Give them all the documents
Give them copies of anything provided by the agent — a draft agreement, advertising brochure, building reports, LIM report, council files. The more information they have, the better. A lawyer can also advise on further information you should obtain.
Come prepared to meetings
Bring a list of questions with you, and take notes so you don't forget anything.
If you don't understand, ask again
Make sure you understand what they're telling you. They're the experts. If something is unclear, get them to explain it again.
Tell them what you want
If you have deadlines to meet or expectations around what they will do, tell your lawyer. This way you can avoid issues.
Example — Early help
Cathy is thinking about buying a house. She finds a conveyancer and has an initial visit with him where he explains the process. Three months after meeting her conveyancer, she finds a house she loves, but the offer deadline is in just a few days. She calls her conveyancer, and he is ready to help her with her offer.
If things go wrong with your lawyer/conveyancer
Most lawyers and conveyancers do a good job. But if you're having problems with your lawyer or conveyancer, for example your lawyer didn't follow your instructions, or has charged fees higher than expected, first contact your lawyer or conveyancer. If your problem cannot be resolved this way, you can go through disputes resolution either the New Zealand Law Society or the New Zealand Society of Conveyancers.
Contact your lawyer or conveyancer
Many issues can be solved at this step.
Before you do, read our information on:
- your rights
- how to complain.
Your rights
Lawyers and conveyancers have professional obligations to meet when they work with you, based on the Lawyers and Conveyancers Act 2006.
Your lawyer or conveyancer must:
- do their job well, on time, and follow your instructions
- put your needs first
- tell you what they will do and how this will happen
- charge you a fair amount, and tell you how and when they will charge you
- give you clear information and advice
- protect your privacy
- treat you with respect and without discrimination
- keep you up to date on what work is being done and when it is finished
- tell you how to make a complaint about them, and deal with any complaints quickly and fairly.
If you think your lawyer or conveyancer has not meet their obligations, you might be able to complain.
Example — Unfair fees
Emma hires a property lawyer to help her with her first home purchase. She isn't given any information beforehand about how much it will cost. The house Emma buys requires a number of extra checks by the lawyer. She is sent a bill she thinks is too high, with no breakdown of hours or tasks. She asks the lawyer to explain the charges. He sends a detailed invoice with hourly amounts and what was done during the time.
How to complain
Every lawyer and conveyancer must have a complaints process. If they haven't made this clear to you, ask them what their process is.
Before you complain:
- gather proof — emails and letters, dates and details of conversations, invoices.
- think about what you will say — take notes with dates and what happened to make your situation clear.
- decide your ideal outcome — a refund or reduction in your bill, an apology, financial compensation for any losses.
When you complain:
- put it in writing — either by email or letter, including the date. Keep a copy yourself in case you need evidence of your complaint.
- stick to the facts — explain the problem in detail and provide any evidence you have.
- take time out, if needed — if the conversation gets heated, or you need time to consider their response, arrange a time to call, email or message back. Explain you need to time out to digest the conversation.
Dispute resolution
If you can't agree on a solution, you can complain to one of two separate regulatory bodies:
How to make a complaint(external link) — New Zealand Law Society
Guide to the complaints process(external link) — New Zealand Society of Conveyancers
Grounds for complaint
If you are concerned about any of your rights you can contact the New Zealand Law Society and New Zealand Society of Conveyancers for guidance.
They consider complaints on issues including:
- Lawyer/conveyancer behaviour — treating you unfairly, or conflict of interest
- Bad service — delays, not doing what they said they would, not responding to calls or emails, giving you incomplete or wrong information
- Fees — but only if your bill is for more than $2,000 (for lawyers) or $500 (for conveyancers) and under 2 years old
- Failing to follow your orders — going against what you told them you wanted.
What you can expect
After you fill in a complaint form with the Law Society or with NZ Society of Conveyancers, they will assess your complaint and consider the best way to manage it. If they’re unable to assist you with resolving the complaint, a Standards Committee will consider it. If you’re unable to submit your complaint through the online form, you can download the PDF form from the Law Society or email the NZ Society of Conveyancers.
Complaint form(external link) — New Zealand Law Society
Complaint form [PDF 141KB](external link) — New Zealand Law Society
The Committee may recommend a dispute resolution process after making sure your complaint has already been made to the lawyer/conveyancer.
Dispute resolution options include:
- mediation/negotiation — this avoids a hearing and can be a faster, simpler process. The New Zealand Law Society lets you indicate whether you are prepared to try mediation/negotiation in their complaint form
- formal inquiry — if the Standards Committee doesn't think mediation or negotiation is an option, they may make a decision on your complaint after an inquiry.
How the complaints process works(external link) — New Zealand Law Society
Orders they can make
If a Standards Committee thinks the lawyer/conveyancer has done something wrong, it can:
- decide what the lawyer/conveyancer must do to put it right
- send the case to the NZ Lawyers and Conveyancers Disciplinary Tribunal if it is very serious.
If your complaint stays with the committee, they can order the lawyer/conveyancer to:
- apologise to you
- pay you compensation for losses (up to $25,000)
- reduce, cancel or refund your legal fees
- fix any mistakes at their own cost
- pay a fine up to $15,000
- pay your costs in making the complaint.
Possible complaint outcomes(external link) — New Zealand Law Society
Complaints(external link) — New Zealand Society of Conveyancers
More help
Get support at any point from:
- Citizens Advice Bureau (CAB) — a free, independent service, run by volunteers. CAB can advise you on your consumer rights and obligations, in person, by phone, or online.
Find a CAB near you(external link) — Citizens Advice Bureau
- Community Law Centre: Free one-on-one legal advice to people with limited finances. The organisation has 24 community law centres throughout the country. You can find legal information and other resources on its website.
Our law centres(external link) — Community Law Centre