HELP!! Property misrepresented by agent

[sanvell]

We are in the process of purchasing a property marketed as a three bedroom one bathroom house.
We put in an offer which was accepted and has gone conditional. Upon reading the council property file we discovered that the third bedroom is consented as a study only. Due to the septic and drainage requirements, to turn the study into a bedroom would require a significant upgrade to the septic system.

We know we can back out of the deal based on this, but would there be any legal ramifications for the agent and would we have any grounds to claim compensation for legal/LIM/Builders Report costs? What are everyone’s recommendations? Should we try renegotiate price etc.? any thoughts appreciated.

[NZGEMS]

my advise would be take responsibility for where you are, while an agent should not advertise a property as 3 bedroom if it is not they may not know, if they were told it was 3 bedroom they probably believed the seller in which case they would not be liable it is my understanding, you have checked the files now so I would say decide if you do really want it or not and put it down to experience rather than looking for someone to blame. if the seller knowingly said it was 3 bed when being aware of otherwise there is a possibility you could have a case against them too

I am a sales person myself and I always advise my purchasers to check the council files at least if not prepared to pay for a Lim.

Good luck I cant give legal advise just my take on it; personally, I like to take responsibility for my decisions rather than blame someone else, if anything and you are not unconditional you could try a price reduction if that is what you think would help, sometimes it is good to be grateful for information you have paid for which has made you realise it is not such a good purchase at the end of the day. spending say $1000 on a Due diligence period can sometimes save you a potential loss of many tens of thousands later on.

[Philipnz]

Please explain how using a study as a bedroom requires additional septic system?
Are you suggesting this is a "change of use" from a residential dwelling to something else?

[Wayne]

probably something to do with more people in the house etc.

[PTILoveYou]

Most likely the real estate agent did not know the consent issues with the property files (agents normally don't check that as it shouldn't be part of their job).

I suggest that you, as the buyer, negotiate for a lower purchase price, or pull out of the contract and look for a legit 3 beddy, instead of claiming anything from the owner/agent.

[Meehole]

Please explain how using a study as a bedroom requires additional septic system?
Are you suggesting this is a "change of use" from a residential dwelling to something else?

My thoughts exactly. My first question would be to ask why? I could understand if they wanted to put another toilet in but there are heaps of people that use a study as a bedroom.
What makes it a study? Absence of a wardrobe? What say you build one in? Is it still a study or now a single bedroom? Who would know? What say you put a freestanding wardrobe in the room and left it when you sold it? Is that room a bedroom or still a study with a freestanding wardrobe?

[Austrokiwi]

What makes it a study?

I don't know about now but years ago a bedroom had a minimum size....a room smaller than that minimum size would have to be designated as something else. As Far as how this effects the septic tans thats beyond me? I guess it may be councils requiring a certain sized septic system for the number of people a house can accommodate......If that is correct then I would anticipate next Kiwis will find they have have to get council issued visitors permits when they have friends and families to stay for the holidays.

[Davo36]

next Kiwis will find they have have to get council issued visitors permits when they have friends and families to stay for the holidays.

Well we already have to pay large wastewater bills (80% of what comes in, even if you water the garden a lot or top up your pool a lot), minimum use charges for water, and now in the last year in Auckland, a fixed charge for water/wastewater too. So water is now 3 times the price it was a year ago. Oh and did I mention the monthly billing?

So your suggestion could well become reality one day. They'll find any way they can to squeeze more out of ratepayers.

[Wayne]

If that is correct then I would anticipate next Kiwis will find they have have to get council issued visitors permits when they have friends and families to stay for the holidays.

Or maybe before they can have any more children.

[BigBadWolf]

Popular holiday areas such as Whangamata have had limits on the toilets-people ratio for a while now.
It seems to be treated as more of a suggestion than any kind of bylaw though, as I have never seen it enforced.
I guess policing would be tricky as well, trying to establish how many people really live in the house when people are out nearly 24 hours a day over newyears, just as an example.

[mrsaneperson]

It seems a strange one to me, and likely consigned to outer Auckland areas. If i was going to rent it out i would be mainly concerned if i could legally advertise it as a 3 bedroom instead of a 2 bedroom plus study .