Unpermitted Works & Defective Titles
Unpermitted (or non-consented) works & defective titles on a property can be a stumbling block for some so it pays to check the paperwork prior to buying or selling. You and your real estate agent can identify areas of concern checking the council files, Lim report and title and seek further advise from your lawyer or solicitor.
Any issues with the property must be disclosed to potential purchasers and your lawyer will most likely add additional clauses in the sale & purchase agreement or auction terms & conditions, which may effect any title requisitions and/or vendor warranties, to cover these.
Purchasers may find that even if they love the property, they may have trouble getting finance through banks and obtaining house insurance or they may try to negotiate down the price to compensate the cost of making the property compliant.
Further Information
From 1 July 2015, Auckland Council has introduced a new policy that it is applying across the whole of the Auckland region. Previously, the process for rectifying these unconsented works differed across the Auckland region – a legacy of the processes employed by the various councils prior to the amalgamation into Auckland Council.
If a property has any buildings, or additions and alterations to buildings, which were not permitted or consented at the time they were built, a property owner can apply to the Council to have a Certificate of Acceptance issued for the work in question. However, that Certificate of Acceptance for the unauthorised work or alterations must meet the current New Zealand Building Code – not the Building Code at the time of construction. This is where property owners can be caught out. What may have been complied with the building standards twenty years ago, may not comply with today’s building standards. Councils will not issue a Certificate of Acceptance for a building or an alteration or addition simply because the work complied with the Building Code ten or twenty years ago.
Thinking of Selling?
If you are ready to make the move please give me a call – The sooner we meet, the sooner I can help with preparations to get your property ready to go on the market AND the sooner we will know if there are any potential issues that may need addressing.
Anita Dobson – 021 337 093, Harcourts Whangaparaoa