Buying guide
Mortgage sales NZ: What buyers need to know
Is it an opportunity or a risk?
AI summary
A mortgagee sale can be an opportunity to buy property for less but carries significant risks. Buyers have fewer protections, as agreements favour the bank and there are no guarantees on the home's condition, chattels, or vacant possession.
Thorough due diligence is essential to mitigate these risks. Have a solicitor review the LIM, title, and sale agreement, and get a builder's report if possible. The potential discount must be substantial enough to justify the increased uncertainty.
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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