How Do I Fix Or Sell A House With Unconsented Work?

Selling property with unconsented work in New Zealand poses significant risks, including unexpected delays, financial loss, potential Council “Notice to Fix” orders, and issues with insurance coverage. Unconsented works often mean non-compliance with the Building Act 2004, requiring remedial action or even removal of the work.

Option 1: Fix and Legalize (Recommended for Max Value)

While you cannot get a “retrospective building consent,” you can apply for a Certificate of Acceptance (CoA).

Determine Eligibility: CoAs are generally only for work done after July 1, 1992. For work done before this date, you often need a “Safe and Sanitary” report from an independent inspector.
Assessment: Hire a professional (e.g., building surveyor, engineer, or architect) to inspect the work and compare it with council records.
Remediation: If the work doesn’t meet current building codes, you must perform repairs before the council will sign off.
Application: Submit an application for a CoA to your local council. This usually includes a building report, photos, and drawings.

* Always check the Auckland Council guides for specific document requirements.

Option 2: Sell “As-Is” (Fastest Route)

You can sell a property with unconsented work, but it carries financial and legal risks.

Mandatory Disclosure: You must disclose unconsented work to the real estate agent and potential buyers. Failure to do so can lead to a breach of warranty and potential lawsuits.
Strike Out Warranties: In the Sale and Purchase Agreement, your lawyer should “strike out” the standard vendor warranty that states all work is consented.
Price Adjustment: Expect to sell at a discount to compensate for the buyer’s risk and the difficulty they may face getting a mortgage or insurance.
Removal: For small structures (like a non-compliant deck), it is often cheaper and faster to simply remove them before listing.

Summary of Pros and Cons

Action	Pros	Cons
Obtain CoA	Increases pool of buyers; achieves full market value.	Expensive and slow (can take 20+ days plus repair time).
Sell As-Is	Quickest way to exit; no repair costs.	Lower sale price; limited buyer pool (cash buyers preferred).

Key Implications of Unconsented Work:

Failed Inspections: Properties may fail inspections when seeking a Certificate of Acceptance (COA) or Code Compliance Certificate (CCC), necessitating expensive repairs.
Legal/Liability Risks: While current owners may not have liability for work done by previous owners regarding warranties, they face issues if work is found to be dangerous or non-compliant upon selling.
Insurance Risks: Insurance cover may be voided if damage originates from unconsented work.
Sale Restrictions: Unconsented work, such as unpermitted decks or extra rooms, can hinder potential buyers from securing bank loans.

Prepare to Impress

If you would like to know more about the benefits and how it could apply to your home, We’re happy to take your call and provide more insights.