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Selling · HouseMe Legal

What will I walk away with?

Sale price minus everything that comes out before it reaches you.

The agent takes commission out of the buyer's deposit. Your bank takes the mortgage and any break fee. The lawyer's fee and the LINZ charges come out at settlement. What is left is your net in hand, and it is almost always less than "price minus mortgage". Put your numbers in and see the statement before your lawyer sends it.

Brokers — the number your client needs before they shop for the next place.
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The deposit goes to the agent firstThe buyer pays it into the agent's trust account. Commission comes out of it, and the rest reaches your lawyer after the agent's holding period.
Rates are apportioned to the dayIf your instalment runs past settlement, the buyer refunds the days you have paid for. It shows as a credit on the statement.
Ask the bank for a payout figureBreaking a fixed rate can cost thousands. Only your bank can quote it, and it changes daily.
Your lawyer pays everything out on the dayBank first, then the invoice, then the balance to your account, usually mid to late afternoon.
1

Your sale

Round figures are fine. Everything updates as you type.

The agent

Council rates and anything else

Days of rates you've already paid past settlement30 days
0 (paid to settlement)90 days

Rates run in instalments. If yours is paid to the end of the quarter and you settle mid-quarter, the buyer refunds the balance to you on the statement.

2

Your settlement, line by line

This is the shape of the statement of account your lawyer sends on the day. Red lines come out, green lines come in.

Net in hand
—
paid to your account on settlement day
Equity you had
—
price minus mortgage, before costs
Cost of selling
—
agent, marketing, legal and LINZ

The statement

3

Where the money moves, and when

Three moments. You only see the last one.

When the buyer signs or goes unconditionalThe deposit lands with the agentUsually 10% of the price, paid into the agent's trust account. It is not yours yet.—
After the agent's holding periodCommission comes out, the rest moves to your lawyerThe agent deducts their fee and sends the balance to your lawyer's trust account, where it waits for settlement.—
Settlement day, usually 1pm to 4pmYour lawyer pays everyone, then youBank payout first so the mortgage is discharged, then the legal invoice and LINZ, then the balance to your nominated account.—

If you are buying on the same day, your net in hand is what funds the purchase. Run the selling and buying calculator to see whether it covers the next place.

Selling? Get the legal side fixed-price

A sale with one mortgage to discharge is $2,995 including GST, or $2,695 with no mortgage. Bring these numbers to a free call and we'll walk you through the agency agreement before you sign it.

Book a free 15-minute call

Or call 09 918 9404  ·  angus@housemelegal.co.nz