Based on my experiences in NZ....
He will need (at the very least):
- a lawyer
- a mortgage broker
Find a property he likes, make an offer (price / deposit [if applicable] / conditions / settlement date).
The offer is in writing on a standard form of document (save for the clauses which are added in), and can probably be done via fax or scanned documents. The offer will be subject to conditions (eg. finance to the satisfaction of the purchaser / suitable builders report / LIM / due diligence*).
* I'm not a lawyer, but the "due diligence" clause is, in my experience, the mother of all clauses as it means you can walk away for ANY reason. Probably a very good idea for someone buying NZ property from offshore.
All your clauses are subject to confirmation (and this is specified in the clauses themselves). They are written to be either confirmed within X working days, or X days (both are taken from the date the contract was countersigned in it's final form by BOTH parties), or on a "by x date" basis.
So you make an offer, sign some contract papers, make sure your clauses are in and to your satisfaction -> and then the REA will ask you for the name of your lawyer. Your lawyer will be sent the contract and then he / she will liaise with you regarding whether or not you wish to confirm the contract (or clauses of the contract) by whatever date [as required].
This is NOT legal advice - but until such time as you have gone "unconditional' (you have confirmed all your clauses) you are not legally obligated to complete the purchase.
So lets say you make an offer:
- Mark_B (or nominated entity) [the purchaser]
- $100,000 purchase price
- $5,000 deposit
- settlement on Friday 16 November (usually a Friday, it can be quicker, but 4 to 6 weeks fairly std)
- finance clause 15 working days
- LIM 10 working days
- Builders report 10 working days
- due diligence 15 working days
(The actual clauses themselves are properly worded of course)
So lets say it is all counter-signed, etc (the vendor has accepted your offer) - at that point the contract is sent to your lawyer and you start working through your conditions (arranging finance with your MB / arranging a LIM through your lawyer / arranging a builders report, etc). And, as each is met to your satisfaction (eg. you get a firm offer of finance that you are happy with) then you can confirm each clause.
Bearing in mind though that (as above) clauses might have different dates for confirmation.
So lets say it is all hunky dory and good to go - you are all confirmed and then you just prepare for settlement. Probably not much for the purchaser to do except make sure that any money they are required to pay is in NZ in advance. Settlement is usually electronic in NZ and lawyers do it on your behalf.
You'll recieve a copy of a settlement statement from your lawyer which details what you paid, what their bill was, where the funds came from (eg. Finance from Westpac NZ, etc).
That's basically the process in NZ.
A couple of things to be aware of:
- arranging finance *could* be tricky so probably best to line up a MB and ask them to look at your situation and give you (a) a list of what information you need to provide, (b) some idea of what you can actually buy, (c) what the offer of finance might look like, and (d) how long it might take to get it all confirmed. No point in having a 15 working day finance clause if you know it will take yoi 20 working days to get your ducks in a row.
- deposits aren't required under NZ law, so don't feel obligated to offer one. But it can help make your offer more attractive.
- a cash offer (one with no clauses that need to be confirmed) is obviously very attractive, but a risky proposition unless you actually have the cash to hand or a very very firm offer of finance. Really not worth the risk imho.
- If you do make an offer subject to various clauses (which is what you will do), the vendor might counter-offer and put in what is known as a "cash clause". A "cash clause" is a clause in a contract that says that if the vendor receives a cash offer (no conditions) that they are happy to accept - that you have x amount of days (maybe 5 or so) to confirm all your clauses - or else the deal is off.
So the cash clause will be (for example) a "5 working day cash clause". So even if your contract was only signed 2 days ago and it had a 15 working day finance clause - if the cash clause is activated it means your 15 working days is now about 7 working days.
But, again, he needs a lawyer and a MB.