Buying guide
Mortgage sales NZ: What buyers need to know
Is it an opportunity or a risk?
AI summary
A mortgagee sale is when a lender sells a property due to owner default. While potentially cheaper, they carry significant risks for buyers.
Benefits include a lower price and less competition, but the sale agreement heavily favours the bank. There are no vendor warranties, and the property's condition, chattels, and vacant possession are not guaranteed.
Thorough due diligence is critical. Buyers should engage a solicitor to review all documents, get a builder's report, and secure insurance early. The price must justify the risk.
What is a mortgagee sale?
How are mortgagee sales different for buyers?
The good
The bad
Make sure you get good advice from a lawyer with experience in mortgagee sales if you're buying one.
How to protect yourself when buying at a mortgagee sale
You can specifically search for mortgagee sales on TradeMe - just use the keyword function.
Buyer beware
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