Doing due diligence

Do your homework on a property before making an offer so you know exactly what you'd be buying.

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    Confirm the property with your home loan specialist

    If you've got conditional approval or pre-approval, give your home loan specialist the property address and they'll check that we're happy to lend on this particular property.

    If you're not yet pre-approved for a home loan, you can talk to a home loan specialist once you've found a property. We'll do conditional approval and look at the property details at the same time.

    This is free and can help determine whether you go any further with the property.

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    Get a lawyer involved

    It's important to get a lawyer on board before you make an offer. They'll review the property documentation to make sure everything is in order and can advise on which checks and inspections to do based on this.

    If your offer is successful, the property will have to be legally transferred into your name. This can be done by your lawyer or a conveyancer.

    The cost of conveyancing varies between lawyers and how much time they spend doing it. You can ask your lawyer for an estimate before they get started.

    For more information on what to ask a lawyer about when it comes to making an offer visit settled.govt.nz.

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    Complete all your checks on the property

    Similar to how you might look under the hood before buying a car, you can do some common checks on the property before agreeing to buy it.

    These range from reading paperwork (your lawyer can help you understand certain property documents) and getting a certified building inspector to check for water tightness and identify any potential issues. Below are some common checks and inspections to help you get started.

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Common checks & inspections

Doing your due diligence on a property might involve these common checks and inspections. This isn't an exhaustive list — your lawyer may advise you to check other things too.

  • Check the title

    The Certificate of Title is the legal document that records the current owner/s, legal description, registered rights and any restrictions on land use. The real estate agent can share the title with you and your lawyer should review it and advise you as part of the conveyancing process.

  • Check with the council

    Check your local council website to see what zone the property is in and whether there are any changes or developments planned in the area. This is often free, but depends on the area.

  • Check the LIM

    A LIM (Land Information Memorandum) report details past building consents that have been issued or applied for, as well as erosion or subsidence, roads and flood risks, and more. Some real estate agents will share the LIM with you. Otherwise, you'll need to request it from your local council for a fee. Allow a couple of weeks for processing.

  • Get a building inspection

    A building inspection is organised by you and carried out by a registered building inspector — you can find one online. The inspector checks things like whether the house is structurally sound, if the wiring is in good condition and if there’s any risk of leaks.

    The cost varies depending on the size of the home, how much detail you want, and whether you want a written report at the end.

  • Get a full valuation

    A full valuation is when a qualified valuer visits the property to provide a market value. They'll also provide a comparison to recent sales within the area.

    Sometimes we'll need one as part of the terms of your approval for a home loan. In this case, we'll organise it, but you'll need to cover the cost.

If you're happy, make an offer

When you've done all the checks and inspections that you'd like to do, and your lawyer and home loan specialist are happy with this property, you're ready to consider making an offer.

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