Step-by-Step Guide: the Conveyancing Process
While every transaction is unique, the conveyancing journey generally follows a set path. Understanding these milestones can help you feel in control from start to finish and know exactly what your lawyer is doing behind the scenes.
1) The Sale and Purchase Agreement
The Sale and Purchase Agreement (often called the S&P Agreement) is the cornerstone of every property transaction. It is a legally binding contract that sets out the price, settlement date, deposit amount, and any special conditions that must be met before the sale can proceed. Once both parties have signed, the agreement becomes legally enforceable, meaning each party is bound by its terms.
Because of how important this document is, it’s critical to have your lawyer review it before you sign. A lawyer can check that the clauses properly protect your interests, ensure that the deposit is held securely, and confirm that key conditions such as finance or due diligence are included. Even a small oversight at this stage can lead to major complications later, so early legal review is one of the most valuable steps you can take.
If you’re selling, your lawyer will also ensure the agreement reflects any undertakings you have made, confirms how the deposit is to be handled, and that your obligations around disclosure are met.
2) Satisfying your Conditions
Once the agreement is signed, you enter what's known as the conditional period - the time to investigate the property more thoroughly and make sure everything is as represented. The standard conditions provided in the standard Sale and Purchase agreement are:
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Finance
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LIM Report
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Building Report
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Toxicology Report
The finance condition gives you time to confirm your bank is happy to lend against the specific property — not just that you’re pre-approved in general. Your lender will often need to review the agreement and the title before they confirm the loan.
The LIM report is obtained from the local council and tells you what the council knows about the property — such as building consents, drainage, zoning, or any special land hazards like flooding or erosion.
The building report gives you a professional’s opinion on the condition of the home, helping you spot potential issues like leaks, cracks, or other red flags before you’re committed to the purchase.
There seems to be a common misunderstanding that once these reports are obtained, you simply forward them to your lawyer to “check.” The truth is, these reports are for your review — not your lawyer’s. You’re the one buying the property, and you need to be comfortable with what they say. Your lawyer can help explain or clarify anything you don’t understand, but the decision whether to proceed is ultimately yours.
If any issues come up, your lawyer can guide you on your options — whether that’s negotiating with the vendor a lower price to address the concerns/issues raised, requesting an extension if more time is needed, or avoiding the agreement altogether. The key is to stay engaged with your lawyer during this period, read everything carefully, and communicate openly with your lawyer about what you’re finding.
3) Going Unconditional
Once all conditions have been met or formally waived, the agreement becomes unconditional. This is a major milestone in the conveyancing process. From this point, both the buyer and the seller are legally committed to completing the sale on the agreed settlement date.
For buyers, it’s at this stage that the deposit is usually paid into the stakeholder’s trust account — often the real estate agency or the vendor’s solicitor. Your lawyer will confirm where it is to be held and ensure it remains in trust until the agreement’s terms allow its release.
4) Pre-Settlement
The pre-settlement phase is the final preparation stage before the property officially changes hands. During this period, your lawyer will prepare the legal documents required to complete the transfer, including the Authority and Instruction (A&I) form. This document authorises your lawyer to act on your behalf in Land Information New Zealand’s (LINZ) electronic registration system. It’s an important safeguard that ensures only verified parties can register changes to property titles.
If you are financing your purchase through a bank, your lawyer will also work with your lender to finalise the loan and mortgage documents. These must be signed and returned well before settlement so that the bank can release funds on the day.
You will also complete a Land Transfer Tax Statement, which records the details of the transaction and confirms whether the property is intended to be your main home.
Before settlement day, the buyer has the right to carry out a pre-settlement inspection. This is your chance to walk through the property and confirm it’s in the same condition as when you first agreed to buy it, including that all chattels are still present and working. If anything has changed — for example, damage has occurred or items are missing — your lawyer can help negotiate a remedy with the vendor’s solicitor before funds are transferred.
5) Settlement Day
Settlement day is when everything comes together. It’s the day the purchase funds are transferred, the title is updated, and ownership of the property officially changes hands.
On the morning of settlement, your lawyer receives the funds from your bank and any personal contribution you are making. These funds are then transferred to the seller’s lawyer in exchange for an authority to release the title. Once the seller’s lawyer confirms receipt of payment, they authorise release, and your lawyer immediately registers the transfer of ownership through LINZ.
When registration is complete, the property is legally yours. The real estate agent will be instructed to hand over the keys, and you can finally take possession of your new home.
Your lawyer will send you confirmation that the registration has gone through, along with a copy of the updated title showing you as the new owner. A final statement will also be provided summarising the funds received and paid, along with any adjustments for rates or water charges up to the settlement date.
6) After Settlement
Even after settlement day, there are still a few administrative matters to tidy up. Your lawyer will provide a final report with copies of key documents, including the registered title, mortgage instrument (if any), and settlement statement. They will also reconcile your trust ledger, discharge undertakings, and securely store your identification and authority records for compliance purposes.
For buyers, this is a good time to arrange to update your address for rates, insurance, and utilities, and to check that any direct debits have been properly transferred. Sellers will receive confirmation that their mortgage has been discharged and that the net sale proceeds have been paid to their nominated account.
A Smooth Path to Settlement
At Hobbs Law, we guide clients through each of these stages with clear communication, timely updates, and proactive problem-solving. We know that buying or selling property can feel stressful, but with the right guidance and a steady hand overseeing every legal detail, the process can be simple and rewarding. Our goal is to make your conveyancing experience as seamless as possible — so you can focus on the excitement of your next chapter.