Process for Purchasing IP in NZ

Hi Terry,

I don’t think I understood your post the first time now that I read over it.

Are you asking as an O/S investor wanting to invest in Australia or are you an Australian wanting to invest elsewhere?

Kind Regards,
George.

“If You never never ask, you’ll never never know”

‘bird-dog’ is a Steve McKnight word, he says it’s what they call deal-finders in the US. i guess if you are into birds, you use a bird-dog to sniff them out…I don’t like the word ‘spotter’ because it reminds me of the word ‘spotty’ which means pimply, or patchy, or inconsistent…and any fool can ‘spot’ a good deal, but not just anyone can negotiate it, put a contract on it, and guide the Aus first time investor through to settlement which is what we do, along with provide a HEAP of information. I also do a half-price version where the person finds their own deal, but i help out with everything else and the order it needs to happen in. I call it ‘better than bird-dogging’ because the person ends up able to do it all by themselves after that.

joy to the world

A question for all you spotters/bird dogs etc.

Aceyducey mentioned licenses, although I would of thought over in NZ as with here you don’t need a license if you’re tying up the property and onselling it to an investor for a fee.

Do you guys mind if I ask if you’re licensed buyers agents or apply the scenario above?

Brendon

the way we do it is that we actually use an assignment document.

We are not really selling ‘the property’ per se, we are selling the contract on the property. we aren’t even selling the ‘obligation’ to purchase the property, because we pass the deal on *before* it has become unconditional, and the new purchaser does their due diligence and goes from there. (we help set that up too.) Often the defects which show up in the builder;s report can be used to negotiate further, or to get the vendor to agree to fix by settlement, or as a reason to pull out, or you might proceed anyway if it’s nothing too major.

We now also have an extra clause in the contract which the vendor signs off on giving us the right to assign the contract, so everyone is in the loop – vendor, and agent. Most agents and lawyers seem to be down with the whole bird-dog concept, occasionally you get a vendor who can’t quite get their head around it, but there’s even a work-around to that which we solved today with one of our deals.

We have hardly had any deals fall over, yay, which is great – only one this year which fell over on builder’s – but even then another client picked it up.

cheers-Mini

Oh PS aceydeucy, no, nice try at an insinuation though. In fact we are so not trying to avoid any law, that we in fact we consult lawyers at all stages – in the beginning I didn’t even put contracts on properties, the client did directly, all I was doing was basically deal research. The new way we do it is so that we don’t get gazumped, because with the old way, if I’d found a deal for a client and they thought about it too long and decided yes, sometimes it was gone, so the contract ensures our work is not wasted.

but even before we bird-dogged we had it legally sorted with custom-drafted wording and clauses.

I see buyer’s agent as functioning slightly differently to a bird-dog- i.e. client says ‘mini find me a deal with these parameters’ and gives me authority to act as their agent – that’s buyer’s agent.

not quite the way we do it – the way we do it is on spec. We find the deals, tie them up with a contract which can be assigned, and then offer them to our clients – not knowing who is going to pick them up, or even if someone *is* going to pick them up. the clients haven’t commissioned us to act as their agent or anything, they are just simply on the mailing list.

So then when we assign the deal, on payment of the bird-dog fee, the client legally ‘steps into our shoes’ and the deal is signed over to them, along with the rights and obligations. You are basically buying the contract from us. But you also get a lot of service with that.

So then after we have assigned the deal we are still strictly speaking not buyer’s agents then either – in fact, at no point did we have the power to act on our client’ behalf.

although we do babysit and watch the deal until it settles and assist with the process i.e. what do i have to do, in what order? some options of people to use, etc – it’s an important distinction that the client has full independent rights to make decisions about the purchase on ‘their’ contract.

joy to the world