Problems with unconsented work

[Natman]

We have a sale and purchase agreement on a property in Auckland and our building report & LIM have shown there is some unconsented work. The vendors have added a toilet & an extra backdoor (by themselves & they are not tradesmen) , there has also been a load bearing wall removed between the kitchen and lounge (which the vendor says they didn't do). The vendor is offering to add a beam into the property (for the wall) & tidy up the back door in order to get a safe and sanitary report which they will pay for. From my discussions with the DBH & Auckland Council I understand they don't recognise safe & sanitary reports & it's a certificate of acceptance that is needed. The vendor is refusing to get one of these. The big question now is if we should proceed. How difficult is it to get a certificate & does anyone have an estimate of total cost (including reports needed etc)? Thanks

[jimO]

wonder how the early settlers got on building without a council inspector looking over their shoulder 24/7

[DazRaz]

Load bearing wall and they don't want to sort it properly? Why take on their problem? Don't touch it.

[spaceman]

wonder how the early settlers got on building without a council inspector looking over their shoulder 24/7

It was certainly better when we did it all ourselves, I mean who needs hot and cold running water, indoor toilets, sewage and storm-water systems. As for that new fangled electricity stuff, that'll never catch on. Sooooo much better when we didn't have to rely on builders and the like what a bunch of thieves, reprobates and sheep botherers they are.

@ Natman....get them to make everything right or get a big enough discount to cover the cost + some extra for you time and effort. Or walk away.....plenty more fish in the sea

Cheers
Spaceman

[davtam]

How badly do you want the place?
How desperate is the vendor?
Any ideas when the wall was removed? If it was 20 years ago, and the house has not collapsed, then it MAY be safe. Then again, maybe not

It may be an opportunity to get the place for cheaper.

Not sure where you are, but when I had the same scenario a while back, I paid the council a visit. They told me even if there was unconsented works, they would not do anything about it, unless someone lodged a complaint.

[Natman]

Thanks for your help.

davtam - we are asking ourselves that very question - it's just the amount of time, money and effort we have put in to the place which makes it seem like getting a discount of the purchase price is a good idea.

Their lawyer says they are not desperate - but we'll see because our lawyer has now told them we want a Certificate of Acceptance and that's it. We're giving them a couple of days to stew over it. My feeling is that they won't back down though.

And they are claiming they have no idea when wall was removed or who did it. There are also cracks in the ceiling and a master builder has said it isn't safe. To their credit they are willing to get the builder to "make it safe". But we would still be left with unconsented work.

[davtam]

Thanks for your help.

davtam - we are asking ourselves that very question - it's just the amount of time, money and effort we have put in to the place which makes it seem like getting a discount of the purchase price is a good idea.

Their lawyer says they are not desperate - but we'll see because our lawyer has now told them we want a Certificate of Acceptance and that's it. We're giving them a couple of days to stew over it. My feeling is that they won't back down though. They may well not back down, but it's likely that the next possible buyer will have the same questions as you . .

And they are claiming they have no idea when wall was removed or who did it. There are also cracks in the ceiling and a master builder has said it isn't safe. To their credit they are willing to get the builder to "make it safe". But we would still be left with unconsented work.

The issue with them getting it made 'safe' is that they are not incentivised to do the best possible job - they will be concerned with cost not quality. It's best (for you) if you do the work - even it's a hassle, at least you will be more confident the job has been done as well

[Maccachic]

Yes but this should cover any substandard work:

There is protection under sale and purchase where the seller guarentee it meets Building Code. vendor warranties in clause 6.2(5) of the ASP. This provided: “6.2 The vendor warrants and undertakes that at the giving and taking of possession:
…
(5) where the vendor has done or caused or permitted to be done on the property any works for which a permit or building consent was required by law:
(a) the required permit or consent was obtained; and
(b) the works were completed in accordance with that permit or consent; and
(c) where appropriate a code compliance certificate was issued for those works; and
(d) all obligations imposed under the Building Act 1991 were fully complied with.”

[Ivan McIntosh]

Good point Maccachic....the original work wouldn't be covered, but the remedial work would be. Can be problems tracking down vendors post settlement, however.

Also, load bearing wall...will a bank lend money if the issue isn't already fixed? Short answer, highly unlikely. So it needs to be done by the owner pre-settlement...best case maybe you organise the builder and they pay for it.

A "safe and sanitary" is more or less what a Certificate of Acceptance used to be called a few years back, so hard to understand what their problem is. The first was a letter from Council, the second is just a formal procedure to legitimise what was being done anyway.

I'm with Spaceman and your lawyer......Certificate of Acceptance for all issues or nothing doing, unless you can thoroughly investigate the work needed, add a healthy margin, get a co-operative bank that doesn't mind fixing it up post settlement, and still make a good capital gain sufficient to repay you for the hassle of taking on someone else's problems!