The hard part is over.
But there are still things that can go wrong between now and keys in hand.
Checklist - HouseMe Legal - Buying Checklist
Guide - HouseMe Legal - Welcome to Settlement Day
Checklist - HouseMe Legal - Open Home & Pre-Settlement Inspection Checklist
This stage is anticlimactic.
And that is a good thing.
Everything up to this point has been urgent, full of deadlines, and tense.
From here, the process is more structured and predictable.
Your client just needs to follow the steps below and their lawyer handles the rest.
We walk every client through this process using the Peak Summited visual above and a short Loom video explainer:
Watch the Loom Video Walkthrough
Once your client goes unconditional, the agreement is binding on both sides.
There is no more exit clause.
The purchaser is committed to purchasing the property and the seller is committed to selling it.
If either party fails to settle, the other side has legal remedies — including cancellation, penalty interest, and a claim for damages.
After going unconditional, the deposit is paid to the real estate agent.
This secures the property.
Your client sometimes panics when they hear the deposit has been released — it has not disappeared.
It is held in trust and will be credited against the purchase price on settlement day.
The common question we get asked at this point:
What about the rest of the deposit and equity?
That is typically made up of the KiwiSaver withdrawal and the client’s savings, which come later.
If your client is using KiwiSaver, the withdrawal application is submitted after the agreement goes unconditional.
The purchaser’s lawyer prepares and sends the application to the KiwiSaver provider along with the signed agreement, a statutory declaration, and the purchaser’s lawyer’s undertakings.
The funds are paid directly to the purchaser’s lawyer’s trust account — not to the client.
Timing varies by provider.
Some take 5 working days, others take 10 to 15.
If your client’s provider is slow and settlement is approaching, this becomes a genuine problem.
See Volume #61 for our unofficial KiwiSaver provider speed rankings.
The seller’s lawyer prepares a settlement statement showing the final accounting of what the purchaser is paying.
This includes the purchase price, less the deposit already paid, plus or minus rates adjustments.
Rates for the current rating year are split based on how many days the seller owned the property versus how many days your client will own it.
There is an internal wash-up of funds that the purchaser’s lawyer handles.
The statement of account shows the exact amount the bank needs to advance and the exact amount the client needs to contribute in cash — down to two decimal places.
See Volume #14 for a full explanation.
The bank prepares the loan documents and sends them to the purchaser’s lawyer.
The purchaser’s lawyer reviews them to make sure the terms match what was agreed, then arranges for the client to sign.
This usually happens at the purchaser’s lawyer’s office or via a Zoom signing session.
The client also signs compliance documents at this stage.
The signed loan documents are returned to the bank, and the bank confirms it is ready to settle.
This needs to happen well before settlement day — not the day before.
The client’s cash contribution — their savings minus any KiwiSaver and the deposit already paid — needs to be sent to the purchaser’s lawyer’s trust account before settlement.
The purchaser’s lawyer will tell the client the exact figure and when to send it.
Do not leave this to the last day.
Ideally, the pre-settlement inspection is done once the sellers have moved out, in the week before settlement.
This is not another building inspection.
It is a walkthrough to confirm the property is in the same condition as when the agreement was signed.
Your client should check:
Be realistic — your client is buying a second-hand asset, and it is not going to be pristine.
But anything the seller said was working needs to be working.
If something is wrong, raise it with the purchaser’s lawyer before settlement, not after.
Your client must have insurance finalised before settlement.
Not a quote — the actual certificate of currency.
It needs to show the lender as an interested party.
Send the certificate to the purchaser’s lawyer, not just the quote.
This is a common trap.
The purchaser’s lawyer will review the insurance certificate before settlement to confirm it meets the bank’s requirements.
On settlement day, the lawyers handle everything.
The purchaser’s lawyer confirms all funds are in the trust account, sends the settlement funds to the seller’s lawyer, and registers the transfer on LINZ.
This gives your client the electronic title to the property.
The real estate agent releases the keys.
The purchaser’s lawyer sends the client a copy of the title with their name on it.
Keys are typically available by early afternoon, but timing depends on how many transactions are settling in the chain.
The purchaser’s lawyer’s invoice is included in the statement of account and has already been paid from the settlement funds — so there is no separate bill.
Watch for two common traps:
(1) Sending your insurance quote instead of the finalised certificate of currency — your lawyer needs the certificate.
(2) Leaving your cash contribution to the last day — send it when your lawyer asks for it, not the morning of settlement.
PS I know you know this so this newsletter is something you can forward on to an anxious first home buyer
✔ This stage is anticlimactic — and that is a good thing. The urgent, deadline-driven part is behind your client.
✔ Pay the deposit, complete the KiwiSaver withdrawal, review the settlement statement, sign loan docs, send savings, do the pre-settlement inspection, finalise insurance — in that order.
✔ Insurance must be the finalised certificate of currency showing the lender as an interested party.
Not a quote.
✔ Pre-settlement inspection: be realistic about a second-hand asset, but anything the seller said was working needs to be working.
✔ On settlement day, the lawyers handle everything. Keys by early afternoon.
Title with your client’s name on it.
✔ Watch the full walkthrough: loom.com/share/34e98aae3c7f468c8a47a30475d74d38
