No Code of Compliance

[Kay]

We have a signed S & P Agreement, conditional on a satisfactory LIM. We find there is no
Code of Compliance for the original construction, and the LIM says "Consent approved but a final CCC for this consent has not been issued. To obtain a CCC an inspection to confirm compliance with the approved plans and standards may be sought."

The original applications were approved in 1992, so what do we do now, to get this sale through? I think I have heard that we can apply for a retrospective approval for the Council.
Can we do this, or does the vendor (or his solicitor) have to do it? Time is running out for the LIM condition, which is only 5 working days, and expires on Monday.

Hope someone can help us out. This is for our own house, not an investment.

Thanks,
Kay

[Dean@Massiveaction]

Depending on which council you may be able to get what they call a safe and sanitary report, otherwise you will need to get COC yourself.
3 main options.

1. Offer to go unconditional with settlement to be made when COC is provided by vendor. That makes it their problem.

2. Get a good inspector to give you an estimate of costs to get COC and offer to go unconditional with that amount of reduction. If you are in Auckland ring Iain Wallace 0274455994, mention my name, he'll look after you.

3. If costs to get COC are high, walk away.

It is very difficult to sell non COC property these days, don't buy it without a good solution.
Option 1 is my favourite. Ask for immediate possession so you can move in, but you settle when the property is legal

[XYZ-Man]

Dean, I think CCC = Christchurch City Council

[Wayne]

Dean, I think CCC = Christchurch City Council

that wouldn't make sense on substitution

[Tan]

"Consent approved but a final CCC for this consent has not been issued. To obtain a CCC an inspection to confirm compliance with the approved plans and standards may be sought."

We had exactly this problem when selling our bach. It turned out that houses at the time didn't have a time frame to get the completion certificate, and most didn't ever get one. There is no need to get one for it now.

Try explaining this to a buyer!! The lawyer finally succeded after several visits to the council in question, and a letter from them stating the above.

In this instance, the point to focus on is whether the building is safe. In the case of the bach, we had proof of council inspections to the end, just not the final inspection, so that helped, along with the buyers builder inspection.

A good through builders report would ease your mind.

The council did state they couldn't under any circumstances provide a CCC (code compliance certificate) or COA (certificate of acceptance).

[egan123]

You can no longer get a CCC as the application period to get one has long gone. You now go for a COA, and that requires a relodgement for a COA, a safe and sanitary won't do it for you. You guy's also put to much faith in a Land Information Memorandum, or LIM. All a LIM tells you is that the dwelling was constructed and met the compliance standard of the day, meaning, in the year it was built. It will not tell you what has been done to the dwelling since, Only a property file search at council will acheive that.A LIM won't tell you what illegal work has been done, only a comparison with the property file will do that. My advice is to go into council and speak to them, they won't bite, and if you show that you want to do it right, they will help.

[egan123]

Depending on which council you may be able to get what they call a safe and sanitary report, otherwise you will need to get COC yourself.
3 main options.

1. Offer to go unconditional with settlement to be made when COC is provided by vendor. That makes it their problem.

2. Get a good inspector to give you an estimate of costs to get COC and offer to go unconditional with that amount of reduction. If you are in Auckland ring Iain Wallace 0274455994, mention my name, he'll look after you.

Ian Wallace is very good, one other thing Dean, just a mute point really.
A COC is for Electrical certification, I'm sure you mean a Code of Acceptance or a COA. To get the CCC or Code Compliance Certificate, you first complete all the council inspections, then the last inspection is called a FINAL. Once these have all been signed of you assemble your file, which will have gaurantees from merchants for timber treatment, and a whole host of other gaurantees, also you have all your Producer Statements, I.E. PS1, PS4, PS3, these are supplied by the Engineer, Architect and Builder etc, Then you have to make a application for the CCC, and wait for council to approve the issuing of. If the period has lapsed as is the case here, then Technically its a unlawfull building, THATS NOT A PROBLEM, Council moves it to a COA, they do this every day, loads of times. However this property cannot get a CCC, its just the way the procedure goes. The onus is on the Vendor to rectify, not the purchaser. If the dwelling was a new build then the file for COA will also have to have a siting certificate from the Surveyor, this verify's the building platform location to boundary, or a section 37 will be placed on the file.

[Kay]

Thanks for all the helpful advice and opinions. It's really great to have so many knowledgeable people helping me. It's nearly sorted, so thanks again.
Cheers,
Kay

[Wayne]

Ian Wallace is very good, one other thing Dean, just a mute point really.

A 'moot' point me thinks otherwise we wouldn't hear a thing :-)

[Kay]

Well, it seems to be sorted, nearly. The Auckland City Council Inspection Team tell me that a CCC is necessary, because the house was built in 1992, although all the consents went through before the Building Act 1991 took effect.

They also said that the cost would be $240 for the certificate, plus $180 per inspection.

Of course, they may also find all sorts of inventive reasons for costing extra, so we still don't really know how much money to withhold from the Vendor.

Thanks again, folks, for all your helpful suggestions.

[essence]

If I was in your position, I would instruct my lawyer to withhold $5K for the CCC, citing $240 for inspection and $180 per inspection.

Once the matter has been settled with the Council, you will forward the remaining monies to the vendors lawyer.

Mind you, that's what I'd do. What you do, is an entirely different matter!!

Why should you be out of pocket, remedying their problems?

[Xav]

They also said that the cost would be $240 for the certificate, plus $180 per inspection.

The key word there is inspection rather than the amount of the fees.

Personally I would not be confirming until the CCC has issued. Although you could have it inspected yourself as Dean has suggested, personally I prefer to make the vendors worry about it (it is their fault after all).

There are many many potential issues upon inspection particularly for a property built as long ago as 1992. You can't know how much to withhold until the property has been inspected.

[Wayne]

The key word there is inspection rather than the amount of the fees.

Personally I would not be confirming until the CCC has issued. Although you could have it inspected yourself as Dean has suggested, personally I prefer to make the vendors worry about it (it is their fault after all).

There are many many potential issues upon inspection particularly for a property built as long ago as 1992. You can't know how much to withhold until the property has been inspected.

If it is a really good deal then you could take a punt, if it is just average why bother with the trouble?

[Kay]

Not a good outcome

Hi again,

When I looked into things further, there were signs in the property file that there had been a previous attempt to get the property signed off.

Shortly after that activity, the property was sold to the present owner.

Not a good look, so we pulled out of the deal.

Thanks for all your advice, which I am sure saved us from and expensive mistake.

Cheers,
Kay

[Xav]

Sounds like a prudent move Kay. Hope you have better luck next time