House with no CCC

[NomoneyNotalk]

Dear landlords,

I have been house hunting for my next rental property, and there is this recently built house that hasn't got ACC. The agent told me that the vendor has applied for ACC and will come out in about 2 weeks time.

I was worried about it and the agent told me that the reason the vendor applied ACC quite late is because he was sick when the house was being built. Therefore just had the time to apply last week. And the house cannot be sold if there is no ACC, and i was advised not to worry about it, as vendor must get the acc first or the deal is off.

Was i given the right advice from the agent? What kind of risk i might be getting?

Thank you

[NomoneyNotalk]

SOrry i meant CCC not ACC

Thank you

[mattinvestor]

sory for my ignorance, but what is CCC?

[spaceman]

Code compliance certificates — Building consents

How should an application be dealt with for a code compliance certificate made after 31 March 2005 in respect of building work carried out under a building consent granted under the Building Act 1991?
An application of this sort must be considered and determined as if the Building Act 2004 had not been passed and section 43 of the Building Act 1991 remains in force, but with two changes.

• A code compliance certificate may be issued only if the territorial authority is satisfied that the building work concerned complies with the Building Code that applied at the time the building consent was granted.
• Interim code compliance certificates can no longer be issued.....etc etc

http://www.dbh.govt.nz/faqs-cccs-index

Cheers
Spaceman

[Davo36]

CCC = Code Compliance Certificate.

It's much better to have one than not. You could make it a condition of the contract though. So the purchase of the house by you is conditional on CCC being received within 15 working days say. The real estate agent can put this clause in for you.

Your solicitor can check that the agreement is OK for you to sign, before you sign it.

[AMR]

I believe that if the bank finds out the property has no CCC finance won't be extended.

[NomoneyNotalk]

i See, because in the title it shows owner has mortgage, so with no ccc he might be forced to sell?

[Tan]

I don't think the bank will look. I saw a situation recently where the house changed hands but some money was held in the lawyers trust account until the CCC was issued. Very simple, unless lots of expensive work is required I guess.
If possible just put your purchase dates back a bit until it is issued.

[NomoneyNotalk]

i Brought a masterbuilder to check, and he pointed out many problems in the house, like cracked ceilings, no seal on windows, and no retaining wall , etc. So decided to not buy the house.

[Ivan McIntosh]

That property sounds like a nightmare. It is perfectly possible to sell it without a CCC if the vendor can find someone willing to buy it that way, and the warranty regarding CCCs and consents for work is deleted. The agent gave you poor-ish advice there...arguably a breach of that warranty would give you the right to cancel, but that is a far cry from a cast iron guarantee that there must be a CCC or the deal is off.

[Ivan McIntosh]

i See, because in the title it shows owner has mortgage, so with no ccc he might be forced to sell?

Most unlikely, unless the owner fails to make their payments.

[NomoneyNotalk]

The builder asked what is the reason he hasn't got CCC for almost 2 years, and the agent said the owner had health problem and just recently recovered and able to apply for CCC. But builder didn't think so because of the problems he found and he renckons a CCC is almost impossible to get. SO adviced me to look for other properties

[speights boy]

The agent told me that the vendor has applied for ACC and will come out in about 2 weeks time.

Sounds a smart move to look elsewhere.

To gain more out of this 'learning exercise', ask the agent to tell you when a CCC is issued.
Just out of interest of course, but don't tell the agent that.
Would be interesting to hear the next excuse if it is not issued.

[NovInvestor]

The builder asked what is the reason he hasn't got CCC for almost 2 years, and the agent said the owner had health problem and just recently recovered and able to apply for CCC. But builder didn't think so because of the problems he found and he renckons a CCC is almost impossible to get. SO adviced me to look for other properties

You have done the right thing by getting a master builder to have a look at the property for you.

Walk away from this one, and look for something else.