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  1. #11
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

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    Problem with taking previous owners to court is that they have to have owned the property in an entity that has some value. The guy who did us had a dodgy lawyer and they had the property in a trust without any value in it. I lost about 70 grand but you just have to smile as you bend over in many of these cases.
    To bring us back to the original post NEVER BUY AN ILLEGAL PROPERTY!!

  2. #12
    Join Date
    Jun 2004
    Location
    Auckland
    Posts
    2,103

    Default

    Hi Kathie

    Thanks for the very detailed account of your scary experience. We came across a similar property 2 or 3 years ago where the downstair unit was separated from the one above only by an internal staricase with a locked door. Fortunately we did not proceed because of unattractive yield.

    I sense from what you said that it is very important to talk to a planning officer at the council.


    After much humming and hawing, he revealed to me that there was an encumberance on the title (which did not show up on the LIM or the title) that meant that it could only be legally used as a home & granny. This was known to the vendor!
    Can you explain what "encumberance" is? I know encumbrance but "encumberance" is a new word to me.

  3. #13
    Join Date
    Jun 2005
    Location
    Auckland
    Posts
    3,936

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    Any body have an idea on what the cost to convert a currently legal upstairs / downstairs house. Into a legal home and income. council and fire rating costs etc..

  4. #14
    Join Date
    Jun 2005
    Location
    Nelson NZ
    Posts
    3,864

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    You can actually do this so in a lots of cases.
    You do not actually get a building consent and code compliance.
    What you get is a building certifiers report and this goes onto the council file. Also often one gets a fire engineers report. In a couple of cases I have seen they install fire detecting and warning devises up and down.
    I have also seen plenty of fire line jib used here and there.
    The fire engineers report does not need to be mega bucks.
    The problems I have come across related to things done behind walls that the certifier cold not get at to confirm like damp proofing.
    As I recall the fire engineers report for the place I was looking at was going to be something like $500. I never went ahead with it because when I looked at the plans I discovered they had taken out one support foundation pole and dug down around the others so they were not fully buried.

  5. #15

    Default

    Quote Originally Posted by fudosan
    Can you explain what "encumberance" is? I know encumbrance but "encumberance" is a new word to me.
    An "encumberance" is what you get when you are typing something too fast with an over-tired toddler in the background when you should be putting the toddler to bed and then paying bills.

    Naturally you want to avoid these whenever possible as the fall-out can be quite devastating!

    BTW - the experience wasn't so much scary as just blimmin irritating! As I said to my husband later - if I wanted to waste $1300 I would book us flights to Queenstown for a weekend. Still, it is much better to drop $1,300 and walk away than it is to be up for huge compliance costs, development levy contributions, council fines, and possible declined insurance claims!

    Anyway, we are back in the middle of it again with another property that looks magnificent, has sailed through all the preliminary due diligance, and is now turning totally pear-shaped on us! Problem is that we want this one for our home so it is much harder to walk away from!

  6. #16
    Join Date
    Jun 2005
    Location
    Hamilton City
    Posts
    86

    Default

    Exactly what is the council envelope?

    What is it's purpose & content?

    Pooomba:

    bought a property that had an abatement notice against it that the vendor had hidden from me and the council hadn't gotten notified on the LIM so I'm in the process of fighting the imposed removal of 2 kitchens from a property. Every 90 days you get fined $750 and eventually you end up in court with fines of many thousands of dollars.
    What's the purpose of an abatement notice?


    Thanks

    Newbie
    Be fearless in pursuit of what sets your soul on fire

  7. #17
    Join Date
    Mar 2005
    Location
    Wanganui
    Posts
    60

    Default

    Had similar problem. Found out after rushing through a sale that the garage was unpermited.
    Solicitor pointed out a clause in our " agreement for sale and purchase of real estate " 7th edition.

    6.2.5
    Where the vendor has done or caused or permited to be done ect ect.

    This is a standard clause which boils down to the vendor is responsable for having all buildings permited. I took my vendor to the small claims court about 1 year after the sale. Everything was turning to custard untill I pointed out that clause in the agreement. He is now paying me back my costs of getting the garage permited at $30 per week.

    Barry

  8. #18
    Join Date
    Jun 2005
    Location
    Nelson NZ
    Posts
    3,864

    Default

    Quote Originally Posted by Patu
    Exactly what is the council envelope?

    What is it's purpose & content?



    What's the purpose of an abatement notice?



    Councils keep all the plans and most correspondence and should keep all building inspectors notes on properties.
    For some properties these can be held in an envelope and might consist of just one old blue print plan. For other properties they there are so many plans and other stuff that they keep them in a file box.
    Anyone can go and look at these plans for a small fee. Currently $15 locally. Any one purchasing a property must go and look at this file.
    You need to check to make sure that any additions or out buildings have a building consent and code compliance.
    Some properties have special restrictions placed on them by the council.
    Things like "The granny flat must be removed once the property is sold" or various other usage restrictions.
    Buyers would be a fool to think that their lawyer or friendly landagent will inform them of these things.

  9. #19
    Join Date
    Jun 2004
    Location
    Auckland
    Posts
    2,103

    Default

    It's called property file in Auckland city, and costs about $7 for viewing.

  10. #20
    Join Date
    Jun 2005
    Location
    Mt Maunganui, NEW ZEALAND
    Posts
    1,463

    Default

    Quote Originally Posted by fudosan
    It's called property file in Auckland city, and costs about $7 for viewing.
    $5 in Tauranga and FREE in Rotorua.

    Regards


 

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