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Internal Reno without CCC

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  • Internal Reno without CCC

    Hi there,

    There is a two-level property I am interested in buying at an auction but there is a major concern for which I'd like your opinion please.

    The top level of the property is all good with consents and stuff. The lower-level was a garage but has very recently been converted to a living area that has two rooms, one bathroom, small foyer with a sink and a bench. There is no oven or a built-in hob. The lower-level has two entry points:

    1. Access from the top-level internally down a staircase.
    2. Accessed externally from the garden through the french-doors of the lower-level foyer.


    My main concern is that a CCC has NOT been issued yet for the lower-level renovation. Agent says that a CCC will be ready by the settlement date but what if they don't? It is an auction! What are the consequences of having a living area without a CCC? However, I do notice that a recent building consent for this could be found on QV website which simply says this: RBW: Internal renovation.

    Should I go for it or walk away? Many thanks in advance.
    Last edited by weera2500; 25-06-2016, 11:31 PM.

  • #2
    It is in the sellers interest to get it before the auction.

    You can always talk to the local Council to see what is required for the CCC then find out how much it will cost to finish and factor it in to your buy price.

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    • #3
      Get a pre auction agreement that settlement is conditional on vendor providing ccc

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      • #4
        This is actually pretty tricky.

        There's another thread on here where the vendor just said "Oh I can't get CCC." Even though they warranted to do so.

        The purchasers really wanted the property. And so ended up doing a lot of the work to get the CCC on the vendors behalf.
        Squadly dinky do!

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        • #5
          That's the problem with "warrants". I just had the same thing Friday. The vendor is warranted to provide keys to all locking doors for example. They didn't and the warranty means nothing, you still have to settle. Then we have to go to disputes to recover any costs.
          All the fine print using the term "warrants" means bad luck if they don't.

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          • #6
            What i Suggested is not a warrant but a condition of settlement. Even go further and put a time limit to get ccc and a sunset clause if the dont provide it so you can walk if you wish

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            • #7
              Originally posted by motivated View Post
              What i Suggested is not a warrant but a condition of settlement. Even go further and put a time limit to get ccc and a sunset clause if the dont provide it so you can walk if you wish
              Yeah this can be done but what if you really want to buy the property? Like you don't want to just sign up, pay a deposit, then walk away?

              And what about the deposit paid? What if the agents have taken their bit out of it already?

              So it can be hard to unwind, you can't just say "Right, times up, give my money back." Well you can, but they might not do it.
              Squadly dinky do!

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              • #8
                A more sensible approach is to
                1. Establish what needs doing for it be compliant.
                2. Find out if bank will lend on it as is.

                Then do what you think is best. If the current price is good and CCC is either minor or unnecessary then go ahead.

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                • #9
                  Don't you have to authorize early release of deposit anyway via solicitor? I have had this issue and put in a condition, all worked out fine would be a headache if not!

                  Originally posted by Davo36 View Post
                  Yeah this can be done but what if you really want to buy the property? Like you don't want to just sign up, pay a deposit, then walk away?

                  And what about the deposit paid? What if the agents have taken their bit out of it already?

                  So it can be hard to unwind, you can't just say "Right, times up, give my money back." Well you can, but they might not do it.

                  Comment


                  • #10
                    Originally posted by jappronz View Post
                    Don't you have to authorize early release of deposit anyway via solicitor? I have had this issue and put in a condition, all worked out fine would be a headache if not!
                    Yes deposit held in YOUR solicitors trust account and only released upon ccc

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                    • #11
                      Thanks for the replies!

                      A clause that specifies that the vendor must obtain a CCC by the settlement date seems reasonable but I have to sell my own property in order to settle the property I wish to buy. That means, soon after the auction day, if I win, I need to start doing a little clean up, landscaping, a small paint job etc to my own property as well as partially stage it to put on the market. All of this effort would be in vain if the vendor doesn't obtain a CCC by the settlement date, right? and I would need to take steps to reverse the 10% deposit as well which would have incurred interest until then! Wouldn't I be in a big pickle then?
                      Last edited by weera2500; 26-06-2016, 08:07 PM.

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                      • #12
                        You wouldn't do that Weera, unless you want a stressful life. you need to decide first if you want the property regardless. If you only want it if it has CCC and you have to sell another property etc. my advice is don't buy it. If you're happy to buy it with CCC or not then go for it. If they can't get CCC you can try and get a further price reduction to settle as is.

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                        • #13
                          Originally posted by weera2500 View Post
                          and I would need to take steps to reverse the 10% deposit as well which would have incurred interest until then!
                          Not really - as people wrote above, the deposit should stay in YOUR solicitor's trust account, so I don't see any problem in returning it. Your solicitor will probably credit you some interest too - I had it once when I sent the deposit to their account several weeks earlier then really needed.

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                          • #14
                            Agree with bobs your uncle, work out what you are happy to pay if it didn't have ccc and if it gets it its a big bonus! Gotta watch the heart, stress is a killer!

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                            • #15
                              My last development had some delays in the CCC being issued and went to auction without a CCC. The purchaser wrote in a condition of settlement was that a CCC has to be issued. If it wasnt issued they would settle anyway but hold back 100K which would be paid once CCC was issued.

                              It would be prudent to find out what is required for CCC and make sure the amount withheld is sufficient to cover it. In our case it was some producer statements that were slow in being issued so their risk was minimal but the CCC came through two days before settlement so it worked out for everyone.

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