You may look at dozens of houses before you buy or only a few. Either way, you can find the right home thorough research. We look at the important matters to investigate.
Before you buy a new home, whether it is not yet built, newly built, or an older home, it is important to research it thoroughly. For most people, buying a house or an apartment is the biggest investment they will make, so it is wise to go into it knowing as much as possible, including any defects or potential problems.
When you purchase an older house you are likely to be buying into some problems. Homes that have been neglected can have problems with the structure, roof, plumbing, electrics and gas, which can pose a risk to the overall integrity of the building, as well as your safety and wellbeing after you move in. Even if the house has been well maintained, you can expect a few matters will need to be dealt with, even if it is simply a need for redecoration.
For newer and newly built homes, the problem of weathertightness failure, or at the extreme end, a leaky building, has been a concern for some home owners. Some homes built in the period from early to mid 1990s until around 2003 have shown failures in construction, design, supervision and material installation. You need to take particular care if you are in the market to buy a home identified as being prone to leaking.
The type of houses most at risk of weathertightness failure are often described as ‘Mediterranean style’. Some common characteristics of these houses include:
- Flat or low pitched roofs
- Textured or monolithic claddings (plaster-look)
- Plaster finish carrying down to the ground or deck
- Deck areas over other rooms
- Enclosed handrails
- Decorative fixtures passing through the cladding
- The wall extending past the roof line to form a parapet
- Internal gutters
- Curved window heads
- Walls finishing into other walls
- "Complicated" house
- Use of untreated framing (many houses built from 1997 to 2003 used kiln-dried untreated framing)
Other styles of house with complicated roof lines, complex wall and roof junctions, or also having one or more of the features above are also at risk of weathertightness failure. If the house you are buying contains even one of these features, refer to the weathertightness section which gives guidance on what specifically should be looked for.
When you find a home you are interested in buying, make sure your money will be well spent:
Do your own research into the area and the state of the home.
Before you sign a sale and purchase agreement, make it conditional on getting a satisfactory:
- Title Search
- Land Information Memorandum
- Property inpection
Houses identified as being at high risk of leaking are those using monolithic cladding systems, sometimes known as ‘Mediterranean’ style. They usually feature textured wall surfaces made out of plaster over polystyrene or fibre cement sheet. They sometimes have:
- Wall claddings in contact with the ground.
- Recessed windows.
- Roofs with narrow or no eaves.
- More than one storey.
- Design features such as solid balustrades, complex roof design and envelope shapes where roofs frequently intersect with walls on upper floors.
- Decks and balconies that jut out from walls.
- Enclosed or concealed gutters.
- Inadequate sub-floor ventilation for timber floors.
These features may not allow adequately for deflection or drainage of water unless particular care is taken in the design and construction.
Many were built with untreated, kiln-dried framing timber which is susceptible to rot if it gets wet and cannot dry out.
Inspecting homes with potential weathertightness problems
If you are interested in a home that has these types of features, an independent building survey is essential. Ask your building surveyor to look particularly for signs of water damage or potential leaks. They should use a moisture meter. Moisture meters are generally non-invasive meters that can indicate moisture problems and water leaks without making holes in the walls. They do not guarantee that no weathertight problems exist, but might find areas of high moisture levels. (Check that your inspector is using a non-invasive meter.)
However, not all defects can be found, so ask the person doing the inspection to highlight the areas they couldn’t check and identify risk areas that might warrant further investigation. Most pre-purchase inspection reports will have a disclaimer on weathertightness as some of it is too difficult to check without removing linings or claddings. But a pre-purchase inspection is still recommended.
Have a close look at the property yourself. Check for the following:
- Rust or other unusual staining on exterior walls.
- Any cracks in the cladding where rainwater could enter.
- Wall claddings should be clear of the ground and of balconies and decks to stop water soaking upwards.
- There should be sheetmetal or plastic flashings over windows and doors.
- Any dampness and rot around windows and doors.
- Decks should be set below internal floor levels.
- Parapet walls should have flashings covering their top surface.
- Any penetrations, such as pipes or wires, should be correctly flashed where they enter the roof or cladding.
- Any broken sealant.
- Claddings must be clear of the deck surface
- Inside – any stains on ceilings, spongy flooring, mould spots on interior walls, and particularly, musty smells.
- Top fixed handrails on balustrades.
Ask the vendor specifically if there have been any leaks or weathertightness-related problems, and whether a claim has been lodged with the Weathertight Homes Resolution Service.
If you buy a home to later find it has problems with weathertightness, you may have remedies under the law.
Getting a Land Information Memorandum
If you find a property you are interested in, apply for a Land Information Memorandum (LIM) from the council. It should give you information about:
- Stormwater or sewage drains.
- Historic Places Trust protection.
- Special land features such as erosion or flooding.
- Any rates owing on the land.
- Permits, building consents or requisitions, and other certificates previously issued by the local council or Building Consent Authority.
- Zoning and the use to which the land may be put and any conditions applying.
- Any notices to the council by any statutory organisation that has the power to classify land or buildings for any purpose.
- Any notices to the council given by any network utility operator under the Building Act.
- Any other information that the council thinks relevant.
Building Code compliance
If you discover from the LIM or council files that some work has been done on the house without a building consent, (the original plans and drawings of any alterations may be available from the council for you to check against), you can ask the vendor to apply to the council for a certificate of acceptance.
The vendor is not bound to comply with your request (and the council may or may not decide to issue a certificate of acceptance) but risks losing the sale by not being able to demonstrate that the work that can be inspected is up to Building Code standard.
Dealing with real estate agents
When you are buying a house, the principle of buyer beware applies. It is your responsibility to check out the property and either find or discount defects.
The agent has no legal obligation to point out the defects of the property to you, but neither are they permitted to make misleading statements or give misleading impressions about the property. So ask lots of questions and make sure they get back to you with answers. If you believe you have been misled, you may have remedies under the Fair Trading Act.
There may also be a remedy under the Contractual Remedies Act 1979 for misrepresentation made by the agent that induced you to enter into the agreement to purchase. You would have to discuss this with a lawyer.
Sale and purchase agreement
When you decide to go ahead with a purchase you have to sign a sale and purchase agreement which, when signed by the vendor, becomes a binding contract. Learn more about what is usually found in a sale and purchase agreement.
Checking the title and conveyancing
It is essential to do a title search before you purchase any property to find out about the ownership of the property and whether there are any restrictions on the usage of the land, such as a fencing covenant, or building restrictions.
Getting a valuation
Your bank may ask for a valuation if you are seeking a mortgage. A private valuation done by a registered valuer is most likely to give you the true value of your property at the time when you apply for a mortgage.
Note: There may already be valuation done for the vendor but we say it’s wise to get your own.
You can find a registered valuer by searching on the New Zealand Property Institute website. A registered valuer is one who has met the standards and requirements of the Valuers Registration Board (VRB) and has a current practising certificate from the VRB.
A Rating Valuation (which you will find on the rates bill for a property) can give you some idea of the market value of a property, although it may bear little relation to the purchase price, which is the price agreed on between the seller and purchaser.
Rating Valuations (RV) are compiled by Quotable Value at least once every three years under the Rating Valuations Act 1998, for the levying of local authority and regional council rates. RV are often quoted in advertisements from real estate agents.
If the RV is less than 6 months old, or your mortgage application is for a relatively low proportion of the value of a property, it may be acceptable as part of your application to your bank. However, it's wise to check in advance.
Note: If you have made significant improvements to your property, which are not covered by the RV, you can order an urgent Rating Value Review to update the official valuation. This can be done through www.qv.co.nz (costs vary - some pricing can be found on the QV website). Other valuation services including registered valuations are also available through this site.
Making the move
Before settlement, make sure you organise your house and contents insurance so that when you formally take possession, your new home is insured and your insurance company has your new address for contents insurance.