Property Settlements with lawyers in the affected areas
Property Law Section chair Chris Moore has emailed Section members with advice about settlements with lawyers in areas affected by the earthquake. This reads as follows:
“Lawyers are aware of their obligations to their own clients, and to other lawyers. If you are outside Christchurch and you have not heard from the law firm on the other side of a transaction, you can probably assume they are not operational and obviously not in a position to communicate.
“The sensible approach in most circumstances will be to defer obligations and settlements, and to deal with contracts on a case-by-case basis.
“The Property Law Section has fielded queries where the vendor’s lawyer is in Christchurch, and the property and purchaser’s lawyer are located elsewhere in New Zealand. Whether or not settlement can proceed will depend on the circumstances, but a couple of matters to consider include:
- whether there are funds to be drawn down for a new mortgage, in which case you will need to ensure compliance with mortgagee requirements; and
- if you proceed with settlement, whether the risks involved are acceptable to your client.
“Some lawyers have offered their services on an agency basis to help facilitate settlements. They will need to ensure they have the requisite documentation to support their s164A certifications. If you are able to assist through such an arrangement (or in another way), please contact Glenys McDonald on (04) 463 2918 or email quakehelp@lawsociety.org.nz and outline what assistance you are able to offer.
“LINZ will re-issue digital certificates to Christchurch lawyers for free if needed - call 0800 665 463 or email customersupport@linz.govt.nz. The PLS email bulletin of 9 September 2010 also covers some practical aspects about this process.” (Source: Email to New Zealand Law Society Property Law Section members).