Buying a home isn't just a transaction - it's the end point of years of saving, dreaming and planning. At Aspiring Law, we've come across many variations of earthquake-affected homes, and we're well versed in the checks needed.
Doing your due diligence on a pre-quake property
If you’re thinking about buying a pre-earthquake home, here's what's worth knowing before you commit.
Start with an Official Information Act (OIA) request
The Natural Hazards Commission (formerly the Earthquake Commission) holds all EQC information on a property. Ask your real estate agent whether an OIA request has been made for this information, and when it's expected back. It can take up to 20 working days to come through, so the earlier it's raised, the better.
Sometimes an OIA request isn't made because the seller has already provided their own EQC information. Even so, it's worth making the request anyway as sellers don't always hold complete records. Getting the full picture directly from the Natural Hazards Commission gives you a much clearer view of what damage was identified, if it was addressed, and how.
Don't rely solely on the assignment of EQC claims
Most sellers agree to assign their residual EQC claim rights to the buyer. Where this works, it lets you discuss the claim with the Natural Hazards Commission and, if needed, request that it be reopened to assess missed damage or poorly completed repairs.
For Canterbury properties, it's now been around 15 years since the earthquakes, and assignments are increasingly failing to go through. That's why it's so important not to rely on the assignment alone. It is thorough due diligence from the outset that will really protect you. Unrepaired damage or poorly completed repairs can be costly down the track, so review the EQC documents carefully and have the property inspected by the right professionals.
Get the right professional opinions
An experienced builder plays a key role in this process. Many older homes were affected by the earthquakes, and while repairs may have been carried out, their quality and thoroughness can vary a great deal.
Share the EQC information with your builder before their inspection, so they can cross-check that damage has genuinely been repaired and assess the standard of the work. A good builder will also look at the property's general condition. For example, uneven floors, cracking, moisture, or alterations that might need a closer look, and they can give you a realistic sense of future maintenance or remedial costs, which is invaluable when you're negotiating.
That said, a builder's expertise has its limits. If a property has a history of structural damage, it's worth having an independent structural engineer confirm the home's structural integrity.
Here we have outlined some detail, but if you're considering an earthquake-affected property, come and have a chat with Christchurch's Property Team.
We'll take the time to answer your questions and be upfront about the risks, so there are no unexpected surprises down the track.
