Looking at buying house where vendors have RC for subdivision but no CT yet - RISKY?

[ashleyb]

Hey everyone
We're looking at buying a property in Auckland where the current vendors have received RC to subdivide the section at the back of the property. They are planning to build a 2 storey family home there. But they haven't received the new CT for the new section and they have written on the S&PA that settlement will occur 5 working days after new title is issued (or by mutual agreement).
Just trying to figure out what the risks for us are as the potential buyers...

1. Is it reasonable for us to request the plans for the new house they're building to confirm that it will only be a 2 storey family rather than a huge towering 3 storey thing?
2. Is there a risk that the CT won't be issued or will take a really long time to be issued? We would like to settle sooner rather than later. Sorry I'm not clear on the full subdivision process and don't know how long it usually takes to receive the CT after the RC for the subdivision has already been issued. There is already a title plan with LINZ if that makes a difference.
3. We're looking at renting out the property after we settle - will the construction happening at the back significantly influence rental income?

Thanks so much

[abdulbasit]

I would suggest you wait until all the paperwork is cleared. Because you never know what the authorities have to say. They might not just issue CT for any reason as there is a huge checklist. Invest after you are clear from all sides.