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This is the day when you have to pay the full amount. It is called settlement in New Zealand. It’s also the possession date unless you have agreed otherwise. Only after you’ve paid can you have the keys.
Escrow is not a concept used in New Zealand. The deposit on the property is paid into the real estate consultant’s trust account and property settlement takes place in the solicitor’s office. Once it’s done, the title will be registered into your name. Neither you, nor I, will be present.
You need to settle before 4pm on a Friday as any time after that is considered a “last minute” settlement, which can cost you - penalty interest is charged for a last minute settlement, late settlement, partial settlement and deferred settlement.
Breach of contract is regarded as very serious in New Zealand. If you are in breach you will have to pay damages and your deposit could be forfeited to the vendor.
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