Kiwis love to renovate.
Kiwis love to renovate. Whether it is building a deck, converting a garage, opening up a living area, or upgrading a kitchen or bathroom, improvements can add real value to a property. However, any perceived increase in value should be considered in the context of the cost and time involved in obtaining all relevant consents and professional sign-offs, or the risks of failing to do so. Those risks may include difficulties with insurance, bank lending, future sale negotiations, or potential liability to a purchaser. Problems with renovation work often do not surface until years later, often when the owner decides to sell.
Many renovations require building consent. Examples may include building a deck over 1.5 metres in height, converting a garage into a bedroom, or carrying out work involving structural changes, plumbing, drainage, or wet-area waterproofing (e.g. tiling a bathroom). Some work may be exempt under the Building Act, e.g. if it’s like for like.
Obtaining building consent is only the first step. Once the work is completed, an owner must apply for a Code Compliance Certificate (“CCC”). A CCC confirms that the completed building work complies with the building consent. A missing CCC can create significant issues on sale, particularly where a purchaser, lender, or insurer reviews the council records and unconsented works are noted.
If work has been completed without the required consent, an owner may apply for a Certificate of Acceptance. This is a sign off from the Council that even though a building consent wasn’t obtained, the work is compliant with the Building Code to the extent that the Council is able to verify it.
When selling property, vendors are commonly required to give warranties that any building work was completed with the necessary consents and approvals. If unconsented or non-compliant work is later discovered, the vendor may face a claim from the purchaser for loss suffered as a result of a breach of those warranties.
Problems with renovation work often do not surface until years later, often when the owner decides to sell.
A Land Information Memorandum (“LIM”) records information held by the local council about a property. This may include building consents, CCCs, resource consents, zoning, drainage, known hazards, rates, notices, heritage controls, and other relevant matters. A council property file may also contain plans and historical records. Reviewing these documents before renovating can help identify whether the proposed work triggers additional requirements.
Undisclosed or unconsented renovations can also affect insurance. Insurers may exclude cover for defective or non-compliant work, decline claims connected with undisclosed renovations, or refuse full cover. For example if an owner undertakes unconsented DIY renovations by retiling their shower, if their shower leaks as a result, their insurer may refuse to cover any damage to the property caused by the leak. This can also affect bank lending, as lenders typically require satisfactory insurance before advancing funds to a purchaser.
A successful renovation should improve a home, not create problems that emerge years later.
The property’s title should also be checked. If a home is on a cross-lease, alterations may require the consent of neighboring owners and, in some cases, an updated flats plan. Unit title properties may require body corporate approval. Properties in heritage or special character areas may require resource consent, even where the building work itself appears minor. In Auckland, relevant overlays can be checked through council mapping tools, including historic heritage, special character, notable trees, and scheduled places.
A successful renovation should improve a home, not create problems that emerge years later. Before starting work, owners should check consent requirements, council records, insurance implications, title restrictions, and any heritage or planning controls. Careful planning at the outset can protect both the value of the property and the owner’s position when it comes time to sell.
This article is for general informational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy of the information, readers should not rely on this article as a substitute for professional legal advice.