"As is where is" house for sale

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kingdragonfly

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#268366 15-Mar-2020 19:45

I'm looking at a existing large residential house in commercial zoned area. The council property search show as "General - Single Unit Residential," so I guess I can live in it.

The house looks nice enough, but he definitely built several unpermitted buildings: workshops, garages, sheds.

He looks like he also secretly took over an adjoining city owned plot, and built a fence to hide his handiwork, plus more workshops, junker vehicles, and a "secret" exit from one of his garages.

The sale is "as is where is."

The agent is being evasive: "As always it is up to the Purchaser to undertake there own Due and Diligent investigation in relation to Council Records, Building Inspection Reports and Title Search"

Suspiciously a review website gives her's a perfect 5 stars with 20 votes, but they are all anonymous, and there's no commentary.

There's a tender in two weeks. What services should I use beforehand, so I get no surprises if I'm successful?

sqishy

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#2438794 15-Mar-2020 19:55

get a lim report and see if the council has an requests to fix stuff would be first start.

Goosey

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#2438795 15-Mar-2020 20:02

Agent is advising you to do your homework and they are not even close at being well schooled on various council by laws, permits, consents etc etc.

I would be booking an informal chat with the council and go over whats on the LIM etc and tell them what you see on the property and does it comply.

If you are putting in an offer then I would be inserting some clause that goes along the lines of 'subject to something and something else' etc.

Best you find a lawyer thats actually into property law..You need to show/tell them about every building on the property....photos etc etc.

The "as is" aspect means just that.. the buildings and condition of the property are as they are now...with or without consents, build to code or not to code etc etc etc

Im not a lawyer.

Batman

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#2438797 15-Mar-2020 20:05

edit: sorry didn't see it's a tender ... can't help you if you want to come out on top ...

richms

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#2438800 15-Mar-2020 20:22

Isnt that basically the case for any house sold at auction?

Take the chance, perhaps get a bargain, or perhaps get burnt, Nothing good comes from taking zero risk on things.

Richard rich.ms

Handle9

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#2438801 15-Mar-2020 20:29

Write an email to the agent asking all the questions you want answered. They have a duty to disclose all relevant information to the purchaser.

To be honest I'd be running a mile. Banks are unlikely to lend on the property, especially at the moment

lNomNoml

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#2438862 15-Mar-2020 21:47

Too many red flags, walk away.

Journeyman

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#2438888 15-Mar-2020 22:51

It sounds to me like the house is fit for being demolished. That's why it's sold As Is, Where Is. If it's in a commercial area, it's probably more a valuable proposition to have a commercial building put in its place.

Sharesies

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#2438891 15-Mar-2020 23:02

Put in a tender for land value minus demolition cost

Wheelbarrow01

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#2438904 16-Mar-2020 00:27

In the context of post earthquake Christchurch, "as-is where-is" generally means, among other things, that the property is uninsurable and therefore trying to get finance on it will be virtually impossible.

I'd imagine the term to have a similar meaning elsewhere in the country so if that is the case, you're looking at a cash unconditional offer, which is dangerous territory. If the current owner has built unconsented structures and has taken over a neighboring plot as you claim, the title is almost certain to be defective. The council can at any time come a'knocking to demand any unconsented structures be demolished.

The agent is probably not being deliberately evasive. They can't tell you what they don't know. Given the state of the property as you describe it, the agent has probably chosen to seek limited information from the vendor at the time of listing in order to limit the agent's own exposure/liability. That's probably prudent given your description. The agent's insistence to do your own diligence speaks volumes - they are telling you to do your homework so you're 100% sure what you're getting into. Generally in a tender situation, once you make an offer that is accepted, all gloves are off. At that point you are committed to proceed even if you find something is catastrophically wrong with the property, and failing to settle on the purchase could cripple you financially.

In my experience, unless you are an expert at this sort of thing - or you pay a team of experts to assist you - this doesn't sound like the right property for anyone other than a professional developer/investor. But if you think it's your thing, you'll need to chat with the council planners to confirm what should and should not be on the site, get a competent conveyancing lawyer to look over the title documents, check whether your bank will lend against it, check whether your insurer will insure it, and you'll probably need a building inspection as well. Only after you've done all that should you even think of submitting an offer/tender.

*I'm not a lawyer, town planner, estate agent or developer, and my opinion should not be relied upon. Always get advice from professionals.

kingdragonfly

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#2439703 17-Mar-2020 08:13

Obviously I'm having serious doubts about putting forward a tender. If I do I'm going to get the "money is no object" expert advice I can get beforehand.

The advice about demolishing everything is probably spot on.

So here's the language the agent added to the tender agreement

Despite any other provision in this agreement, the purchaser acknowledges and accepts the purchaser has been full informed that certain aspects specified by the vendor in respect of the property or building (as defined in the Building Act 2004) may not comply with the building act or the building code and that there is no

* building permit
* building consent
* resource consent
* code compliance certificate
* certificate of compliance
* final sign off for any building permits

(if applicable), in respect of the property or building works carried out thereon;

Accordingly the vendor's warranties under clause 9 of the General Terms of Sale are herby negated.

The purchaser enter into this agreement and accepts the property on this express understanding and will have no claim against the vendor's warranties pursuant to clause 9 with regards to the building act and the Building code nor will the purchaser have the right to issue a purchaser's notice pursuant to clause 10.2(2) of the General Terms of Sale in respect of any matters relating to non-compliance with the Resource Management Act 1992, Building Act or the Building Code.

kingdragonfly

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#2439715 17-Mar-2020 08:17

For other people who happen upon this post, I found a handy PDF from REINZ that points out "useful legal clauses." In other words how to maximize their protection versus yours..

It's a long read at 56 pages, but it breaks down each section

And here what the aforementioned PDF has to say about the clause 9:

Disclosure of Non-Compliance

This clause does not necessarily protect the agent.

If this clause is used it is recommended the particular work that is non-compliant is defined or explained in the clause.

The agent will still be expected to comply with the Real Estate Agents Act (Professional Conduct and Client Care) Rules.

BlinkyBill

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#2439724 17-Mar-2020 08:42

The Agent’s stuff is standard. As-is is a term that means you accept any disclosed and non-disclosed issues. You can waste time looking for legal protection, but if you accept “as-is where-is” then you have no comeback on the agent or the vendor.

I’m not a lawyer, but if you retain the need for real advice, you should contact a property lawyer about “as-is” sale agreements for property.