Kiwisaver Process

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Forums › Finance and wealth management › Kiwisaver Process

tdgeek

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#226159 23-Dec-2017 11:59

I have a problem with a house we sold at auction, unconditional. Settlement did not occur as the purchaser applied for Kiwisaver grant TWO DAYS before settlement. Crazy. I believe its a 14 working day process? Even then it would be tight as sale was 7th, settlement was 21st. Can people get the process underway before buying a house, so that when they buy, its already underway?

Too late for me, but interested to know.

With holiday period, 24th to 8th are not working days so settlement is now 22nd. Her lawyer seems to have failed here, not ticking the box of "is payment all arranged for settlement day"

nickb800

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#1924032 23-Dec-2017 12:30

You're meant to get preapproval, but then when the time comes to complete the sale, you still need to allow 20 working days to withdraw KS funds, govt first home buyer subsidy and tax credit. HNZC are normally pretty quick, but I can understand why they want to cover their behind and say that could take a long time.

Yes, purchaser sounds mental arranging it two days ahead

itxtme

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#1924057 23-Dec-2017 13:52

Got a letter of acceptance from the fund, then when it went unconditional the process started and money transferred to Lawyers account far in advance of settlement. Lawyers charge extra for doing Kiwisaver payments, you would think they would be pretty knowledgable on it. Whats your contract say on late settlements? At the very least you would want the interest costs of holding onto the house!!

timmmay

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#1924066 23-Dec-2017 14:15

My wife used to work on the legal side of property. People are both stupid and unprepared, and many leave this to the last minute.

tdgeek

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#1924070 23-Dec-2017 14:40

itxtme:

Got a letter of acceptance from the fund, then when it went unconditional the process started and money transferred to Lawyers account far in advance of settlement. Lawyers charge extra for doing Kiwisaver payments, you would think they would be pretty knowledgable on it. Whats your contract say on late settlements? At the very least you would want the interest costs of holding onto the house!!

They are paying penalty interest as from 22nd, at a tickle under 5k for one month. Yes, you would expect the lawyer would have given all Kiwisaver advice when they were asked to handle the purchase

tdgeek

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#1924072 23-Dec-2017 14:43

timmmay:

My wife used to work on the legal side of property. People are both stupid and unprepared, and many leave this to the last minute.

Yes, crazy stuff. Its a big deal, and just before Xmas break. If it was me, Id be going to my lawyer on 1 Dec, saying Im going to an auction on the 7th, tell me what I need to know, so it goes to plan if I win the auction.

tdgeek

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#1924073 23-Dec-2017 14:45

itxtme:

Got a letter of acceptance from the fund, then when it went unconditional the process started and money transferred to Lawyers account far in advance of settlement. Lawyers charge extra for doing Kiwisaver payments, you would think they would be pretty knowledgable on it. Whats your contract say on late settlements? At the very least you would want the interest costs of holding onto the house!!

Nick said above it can take 20 days to get the funds. I dint know anything about Kiwisaver, but Id be finding our WELL before I potentially had a need for it, and not 48 hours before i HAD to have the funds

throbb

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#1924120 23-Dec-2017 15:42

Maybe they didn't know about the grant or didn't think they were eligible, decided to take the penalty hit, but will still come out ahead.