Article: Law & Finance
Leaky Home Crisis: Part 2
What should you do if you think you may be an owner of a leaky home?
Dealing with a leaky home can be stressful, heartbreaking, costly and time-consuming. Not surprising, seeing as how a home is the most expensive thing most of us will ever buy. Sadly, it also carries the least amount of consumer protection. You cannot return it like a faulty television.
If you think you may be an owner of a leaky home, you may have a claim against a number of parties involved in the building of your home, including the vendor, builder, architect, developer, council and building certifier. Litigation is sometimes the only realistic way of recovering the cost of repair, but as many have come to realise, time is of the essence in leaky home cases.
In the last article, we mentioned that many companies involved with this crisis have ceased trading or become insolvent. This is another reason why time is of the essence – you cannot sue a company that no longer exists.
When you purchase a house, you have 6 years from the date of the Agreement for Sale and Purchase to lodge a claim in contract against the vendor. The standard form agreement contains several vendor warranties that you may use to recover the repair costs involved. You may also have a claim in negligence against some of the other parties mentioned above.
The pressing issue in relation to time is the ultimate 10 year long-stop. This begins at the latest when the building receives its final compliance certification (hence the advice to check the CCC before purchasing), and after 10 years, no claims can be brought. The new Limitation Act 2010 comes into force on 1 January 2011, which increases the 10 year period, but it only applies to damage discovered after 1 January 2011.
If you think that you may be the owner of a leaky home, you should immediately register your property with the Weathertight Homes Resolution Service at the Department of Building and Housing. You should also seek an assessor’s report for the Weathertight Homes Resolution Service.
We recommend that you consult a building expert to assess the damage and the potential cost of repair. That is an important step in providing you with some perspective and a cost-benefit analysis of litigation can then be conducted. Whatever the outcome, you will want to minimise your costs and maximise your options as well as your chances of success.
When faced with a large repair bill and a ticking clock, effective legal representation from those that are well-versed in the rights of leaky home owners can provide you with valuable insight and advice that could steer you into the right direction and save valuable time. If you think you may be a victim of this national crisis, do not waste any time in contacting us.
Jeremy Browne - Solicitor, Bsc, LLB(hons), LLM(hons)
Jeremy Browne is a senior solicitor in the firm’s dispute resolution team.
Prior to joining Henderson Reeves, Jeremy was a senior solicitor at a leading commercial litigation firm in Auckland, and before that was a judges’ clerk at the Auckland High Court where he undertook legal research for various High Court Judges and Associate Judges. Jeremy is an experienced litigator, having appeared in the District, High Court and Court of Appeal as well as in a number of London based arbitrations. His specialist areas include: Civil Litigation/ Dispute Resolution, Maritime Law, Credit Law and Gambling Law, Employment Law and Family Protection Claims.
Mitch Singh - LLB
Mitch graduated from the University of Otago in 2009 and was admitted to the bar in Auckland in 2010. He was a winner of the Buddle Findlay New Zealand Law Students’ Association National Negotiation Competition and the National Business Case Competition in 2009. In 2010, Mitch represented New Zealand at the International Negotiation Competition in Brisbane, Australia. A member of our litigation team, Mitch works alongside Senior Lawyer Jeremy Browne on civil litigation and dispute resolution matters.
