Getting the paperwork right

An uncertain economic climate and the aftermath of the "leaky homes" syndrome has rocketed building compliance issues to the top of the list for home buyers.

The goalposts have shifted with each new set of building legislation and buyers may by now be well confused when carrying out due diligence as part of the purchase process.

"The confusion hasn't been helped by a growing number of properties on which work may have been completed to compliance standard but the property owner has either not sought a Code of Compliance Certificate (CCC) or for a variety of reasons has never completed the paperwork and a CCC has never issued," Far North District Council Building Consents Manager Paul Cook says.

The absence of a CCC on a council property file does not necessarily mean the building is unauthorised, provided there is a Building Permit or Building Consent on file, he says

The council is currently working its way through a backlog of projects on which the work has been approved but for which CCCs have never been requested or completed. However this is not going to happen overnight.

Until the backlog has been addressed owners contemplating marketing their properties would be well advised to complete any outstanding work and finish the paperwork before listing their property for sale.

"This can prevent a last minute panic trying to get documents finalised at the critical stages of the sale," he says.

"There is also another alternative now available for owners which is a Certificate of Acceptance (COA). While not as robust as a CCC, it at least gives a measure of assurance to prospective buyers that there has been a limited level of independent scrutiny of the project.

"We have a peer review process to ensure that statutory requirements are carried out and that the procedure is as fair as possible. But life would be a great deal easier for all parties if property owners in the first instance make sure the paperwork has been completed," he says.

It is also important to use the services of appropriately qualified professionals when carrying out building projects to ensure compliance can be achieved.

He says much of the confusion has been as a result of three quite different scenarios which have impacted over the years on the status of information contained in property files. These are:-

Pre 1991 homes: Building Permits

• There were no national standards.
• Government owned buildings were exempt from needing a permit
• Construction was controlled by building bylaws which varied from council to council.
• Building Permits were required, except for government agencies which were often the largest housing stock owners across New Zealand.
• There were no completion certificates other than for multiple occupancy units where an Occupancy Certificate was required.
• CCC regime was not a requirement for building

Post 1991 homes: First Building Act 1991
 

• The 1991 Building Act introduced national standards, displacing local building bylaws. (Effective from 1st July 1992)
• Building Consents were required.
• A grandfather clause accepted the status quo for existing housing stock and councils no longer had the ability to enforce the rules unless a building was dangerous or unsanitary.
• An owner could search the council's property files.
• There was provision for voluntary CCCs which did not have to be sought by the owner until the building was finished.
• Interim CCCs were introduced which did not constitute compliance with the building code but allowed the building to be occupied.

(This was the era of the DIY builders and it was not uncommon for buildings not to be completely finished).

Current situation: Current Building Act 2004

• The 1991 Building Act was repealed 31st March 2005.
• Buildings are required to be finished and to have CCCs.
• There is provision for Certificates of Acceptance (COAs) for work carried out without a Building Consent after 1991, but the COAs have limited standing.

"If property owners are unclear on any aspect of the road to code compliance, they should contact our Building Consents team on 0800 920 029," he says.