Homework is a must for mortgagee buyers

Each week, in the New Zealand Herald, national law firm Simpson Grierson answers commercial property questions which can be emailed and headed “property problems”. This week’s question on Mortgagee Sales is answered by senior associate Phil Shannon who can be contacted at [email protected]

Q. I am looking at a number of properties to buy and a couple of them are being sold by way of mortgagee sale. I have never bought a property from a mortgagee but understand from other people that there are some differences in the way the property is sold. I am a cautious investor and do not want to assume too much risk in my contracts. As a buyer, what is the difference between a mortgagee sale and a normal sale of property?