House settlements during COVID-19
Buying a home in Christchurch can be stressful at the best of times, but particularly so now during the global COVID-19 outbreak.
To provide you with some clarity during these uncertain days, we’ve addressed some key concerns around buying and selling property.
My settlement is due to occur during the lockdown period – what is going to happen?
It has been made clear to us from the New Zealand Law Society (NZLS) Property Section that “any property settlements that require physical movements of people is now for all practical purposes illegal.”
It’s always a frustratingly long wait for the settlement period to end so you can take hold of the keys and move into your new home. If you’re in the middle of a property transaction at the moment, you’re going to have to wait a bit longer.
Lawyers have been encouraged by the NZLS to defer settlements as much as possible until after the COVID-19 Alert Level has been reduced to 2. We are encouraged to “freeze” these settlements as much as possible and to not invoke penalties or serve notices, as everyone is in the same boat.
Practical Steps to take during this time
- If you’re renting, talk to your landlord. Confirm that you are able to stay in your current residential address until alert level 4 has reduced. After all, no new tenants are allowed to move in during this time;
- Talk to your bank or mortgage broker about your lending. Most banks are being flexible around lending and mortgage repayments at the moment, but you have to communicate your situation with them. Discuss whether there will be any issues if you defer; and
- Talk to your lawyer. It is important that we understand your personal situation, so we can communicate with all other parties involved and find the best solutions for you.
Can any property settlements occur?
Settlements where no physical moving is required can still proceed as usual. This includes settlements for undeveloped sections, and tenanted properties where the tenants are not moving out.
Again, communication is key here. While most lawyers around Christchurch and wider Canterbury are able to work remotely, it’s more important than ever to make sure all parties are on the same page. If the other law firm isn’t set up to work from home, or doesn’t have remote access to client files and documents, you may still need to wait until the COVID-19 Alert Level decreases.
Most law firms around Christchurch and Canterbury, including Godfreys Law, learned these lessons the hard way after the 2011 earthquakes. We have been preparing for this kind of scenario ever since, and now our systems are put to the test, it’s encouraging to see everything working as it should.
Because bank and City Council employees are also working remotely, there may be delays around processing transactions and filing paperwork.
How can Godfreys Law help you?
Since 2011, Godfreys Law has been putting systems and processes in place so if there was another disaster and we weren’t able to access our office, we could still provide you with the best possible service.
If your property transaction doesn’t require people moving from one place to another, and if you still want to proceed as planned, we’ll do everything we can to keep your business moving.
If moving ahead isn’t an option right now, we’ll contact your bank, mortgage broker, and the solicitors on the other side of your transaction to put measures in place until this COVID-19 outbreak is over.
If you are in the middle of a property transaction, please contact us for an update on your specific situation. If you have other queries regarding property transactions or any other legal matters, please contact the team at Godfreys Law.
Please stay home, stay safe and be kind to each other.
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