Buying a section in New Zealand to build your dream home is an exciting prospect, but it’s crucial to proceed with due diligence. This comprehensive checklist outlines 20 essential steps to take before signing on the dotted line, ensuring you’re making an informed and financially sound decision.
1. Geotechnical Investigations: Understanding the Ground Beneath Your Feet
The first, and potentially most crucial, step is a thorough geotechnical investigation. This involves soil testing to understand the ground’s composition and stability. You absolutely need to know what you’re building on. A standard report costs anywhere from $1,500 to $3,000 (or more, depending on the complexity and location). A poor soil report can reveal hidden costs, such as the need for extensive foundations or retaining walls. For example, land with high peat content can require significant remediation before building can commence. Request a copy if one exists from the vendor, and if one does not exist, get your own! Remember, problems discovered before you buy are far easier to deal with than problems discovered after you own the property.
2. Title Search and Land Covenant Review: Unveiling the Legal Landscape
Order a title search from Land Information New Zealand (LINZ) LINZ website. This details ownership, any registered mortgages, easements, and, crucially, any land covenants. Covenants are restrictions placed on the land that dictate what you can and cannot build. These can range from restrictions on building height and materials to limitations on vegetation and even the color palette of your home. A detailed review of these covenants is vital to ensure they align with your building plans. Imagine purchasing a section only to discover you can’t build your two-story home because of a height restriction imposed by a covenant! Don’t rely on the vendor to point these out – do your own thorough check.
3. Resource Consent History: Digging into the Past Approvals (or Rejections)
Contact the local council and request information on any previous resource consents relating to the section. This reveals if any applications were submitted and whether they were approved or declined. A declined resource consent can signal underlying issues with the land, such as environmental sensitivity or zoning restrictions. Approved consents might also contain conditions that affect your building plans. Furthermore, identify whether there are any existing council designations on the title. These might impact your development options. For example, some land may have certain requirements because it is in a flood plain or could be deemed a significant ecological area.
4. Site Survey: Mapping the Land’s Topography
Commission a site survey conducted by a registered surveyor. This generates a detailed map of the land, including its boundaries, levels, and any existing features like trees, fences, or structures. This is not just about knowing where your boundary pegs are; it’s about understanding the topography and how that might impact the costs of your build – and how it might impinge on your neighbor’s plans too, if you end up effecting a change to natural water flows. A site survey will also highlight any potential drainage issues or existing easements that might not be immediately apparent.
5. Utility Connections: Power, Water, and Sewage Access
Investigate the availability and cost of connecting to essential utilities like power, water, and sewage. Contact the relevant utility providers (e.g., electricity providers, water companies, and the local council) to obtain quotes and information on connection fees. In some cases, connecting to utilities can be surprisingly expensive, especially in rural areas or new subdivisions. For example, if you require underground cabling, this can significantly increase the connection costs. It pays to have all of this understood before committing to purchasing the land.
6. Flood Plain and Hazard Assessments: Minimizing Risk, Maximizing Safety
Check with the local council to determine if the section is located in a flood plain or is subject to any other natural hazards, such as landslides or coastal erosion. Many councils now have online mapping tools that provide information on flood plains and hazard zones. If the section is at risk, you’ll need to factor in the cost of mitigation measures, such as raising the foundation or installing flood barriers. Failure to address these risks could result in significant damage to your property and potentially affect your insurance coverage.
7. Easements: Understanding Rights of Access
Review the title to identify any easements that affect the section. An easement grants someone else the right to use your land for a specific purpose, such as accessing a neighboring property or running utility lines. Easements can impact your building plans and restrict where you can build on the land. It’s important to understand who holds the easement, what rights they have, and how it might affect your development options. For example, if an easement runs through the middle of your proposed building site, you’ll need to negotiate with the easement holder to relocate it, which can be a costly and time-consuming process.
8. Zoning Regulations: Ensuring Compliance with Council Rules
Familiarize yourself with the zoning regulations for the area. Zoning regulations dictate how the land can be used and specify requirements for building setbacks, height restrictions, and minimum lot sizes. Contact the local council or consult their website to obtain a copy of the zoning regulations for the area. Ensuring that your building plans comply with the zoning regulations is essential to avoid costly delays and potential enforcement action from the council. If your plans do not comply with the zoning regulations, you may need to apply for a resource consent, which can be a complex and lengthy process.
9. Building Code Compliance: Meeting National Standards
Understand the requirements of the New Zealand Building Code. The Building Code sets minimum standards for the design and construction of buildings to ensure they are safe, durable, and accessible. Your building plans must comply with the Building Code to obtain a building consent. Consult with a qualified building professional or the Building Performance website Building Performance to ensure that your plans comply with all relevant requirements. Aspects such as weather tightness, fire safety, and seismic performance will need to meet mandatory standards.
10. Encumbrances: Identifying Financial and Legal Claims
An encumbrance is any claim, lien, or liability attached to the property that may burden or affect its title. This could include mortgages, unpaid rates, or other financial obligations. A title search should reveal any existing encumbrances. It’s crucial to understand the nature and extent of any encumbrances and how they might affect your ownership of the land.
11. Local Council Development Contributions: Factoring in Infrastructure Costs
Contact the local council to determine if any development contributions are payable. Development contributions are fees charged by the council to fund the infrastructure required to support new development, such as roads, water supply, and wastewater treatment. The amount of development contributions can vary depending on the size and nature of your project. It’s essential to factor these costs into your budget to avoid unexpected expenses down the line. Check the council’s Development Contributions Policy, often available on their website.
12. School Zones: Considering Educational Options
If you have children or plan to have children in the future, research the school zones for the area. School zones determine which schools your children are eligible to attend. Proximity to desirable schools can significantly impact property values. Check the Ministry of Education website or contact local schools to verify the school zones. Even if you don’t have children, a desirable school zone often indicates that the area is family-friendly and well-serviced with amenities.
13. Proposed Infrastructure Development: Planning for the Future
Inquire with the local council about any proposed infrastructure developments in the area, such as new roads, schools, or community facilities. These developments can have a significant impact on the value and desirability of your property. For example, a new motorway planned nearby could increase traffic noise and potentially affect property prices. Conversely, a new school or community center could enhance the area’s appeal and boost property values.
14. Pest and Weed Management: Assessing Environmental Concerns
Check with the local council or regional council about any pest and weed management programs in the area. Some areas may be subject to strict regulations regarding pest control, such as possums or rabbits. Others might require you to control specific weeds on your property to prevent them from spreading to neighboring land. It’s important to understand your obligations as a landowner and factor in the cost of pest and weed control into your budget. Areas prone to invasive species might require regular and costly maintenance.
15. Broadband and Mobile Coverage: Ensuring Connectivity
Investigate the availability of broadband and mobile coverage in the area. In today’s digital age, reliable internet access and mobile phone coverage are essential. Check with internet and mobile service providers to verify the availability of services and the expected speeds. In some rural areas, internet access may be limited or unreliable, which can affect your ability to work from home or access online services.
16. View Considerations: Protecting Your Outlook
Consider your own future views and the potential for them to be blocked by future development. There are typically no guaranteed “view” protections unless explicitly documented in a covenant. Carefully consider if your neighbors could, in the future, build in a way that blocks your sunlight or otherwise detracts from the appeal of the property. Talk to the neighbors and understand their long-term plans. This is often overlooked but could be a source of frustration in the long run.
17. Access to Amenities: Proximity to Essentials
Assess the proximity of the section to essential amenities such as shops, schools, healthcare facilities, and public transport. Convenient access to these amenities can significantly enhance your quality of life and increase the value of your property. Consider how far you’ll need to travel for groceries, medical appointments, and other essential services. If you rely on public transport, check the availability and frequency of bus or train services. Proximity to amenities also typically impacts costs of nearby utilities or services.
18. Potential for Future Subdivision: Exploring Development Options
Investigate the potential for future subdivision of the section. Some sections may be able to be subdivided into smaller lots, which can increase their value and provide additional development opportunities. Check with the local council to determine if subdivision is permitted and what the minimum lot size requirements are. Before getting too excited, also factor in the costs of subdivision, which can be substantial – including resource consent fees, surveying costs, and infrastructure upgrades.
19. Sale and Purchase Agreement Conditions: Protecting Your Interests
Carefully review the sale and purchase agreement and include any necessary conditions to protect your interests. For example, you might include a condition that the agreement is subject to a satisfactory geotechnical report or obtaining finance approval. Seek legal advice from a qualified lawyer to ensure the agreement accurately reflects your understanding and protects your rights. Too many buyers skip this very important and often inexpensive step. It can be the difference between a good decision and a bad one.
20. Builder Availability and Quotes: Planning the Construction Phase
Contact local builders to assess their availability and obtain preliminary quotes for building your home. Construction costs can vary significantly depending on the design, materials, and location of the property. Getting quotes from multiple builders will give you a better understanding of the likely costs and help you budget accordingly. Also, check the builder’s references and license details. The Licensed Building Practitioners (LBP) scheme aims to promote and support competent building practitioners. You can view the public register LBP Public Register. Secure your builder early, as good builders are often booked well in advance.
FAQ
Q: What happens if a land covenant restricts what I want to build?
You have a few options. First, you can modify your building plans to comply with the covenant. Second, you can attempt to negotiate with the beneficiaries of the covenant (usually neighboring property owners) to obtain their consent to vary or remove the covenant. This can be a complex and costly process. Finally, if all else fails, you can apply to the High Court for an order modifying or discharging the covenant under the Property Law Act 2007. This is a legal proceeding and can be expensive and time-consuming.
Q: How do I find out about proposed infrastructure developments in the area?
The best place to start is the local council. Contact their planning department and ask for information on any proposed developments in the area. You can also consult the council’s website, which often publishes information on planned infrastructure projects. Additionally, keep an eye on local news outlets and community forums, which may report on upcoming developments.
Q: What is a geotechnical report, and why is it important?
A geotechnical report is a document prepared by a geotechnical engineer that assesses the soil conditions on a section of land. It typically includes information on soil type, bearing capacity, groundwater levels, and any potential hazards such as landslides or subsidence. A geotechnical report is essential because it provides vital information for the design of foundations and other structures. Without a geotechnical report, you risk building on unstable ground, which could lead to structural problems and costly repairs in the future. Moreover, some councils require a geotechnical report before they will grant a building consent.
Q: How can I estimate the cost of connecting to utilities?
The best way to estimate the cost of connecting to utilities is to contact the relevant utility providers directly. Request a quote for connection fees based on the location of the section and the services you require (e.g., power, water, sewage). Be prepared to provide them with information about the size and type of your proposed building. Remember that connection costs can vary significantly depending on the location and complexity of the connection.
Q: What should I do if I discover issues with the section after signing the sale and purchase agreement?
This depends on the terms of the sale and purchase agreement and whether you included any conditions (such as a satisfactory geotechnical report). If you included a condition that allows you to cancel the agreement if you are not satisfied with the results of a due diligence investigation, you may be able to cancel the agreement and get your deposit back. However, you must act within the timeframes specified in the agreement. If you did not include any such conditions, you may still have legal recourse if the vendor misrepresented the property or failed to disclose important information. It is essential to seek legal advice from a qualified lawyer as soon as you discover any issues with the section.
Q: Why is engaging a lawyer important?
Engaging a lawyer is important to help navigate the complexities associated with purchasing a section and to ensure legal protections are in place. Lawyers can review the agreement, explain anything of concern, check the property title, and provide other legal advice. They can also help manage the settlement process and address any legal issues that may arise.
References
Land Information New Zealand (LINZ). “Ordering Land Records.”
Building Performance. “Building Code Information.”
Licensed Building Practitioners (LBP). “Public Register.”
Don’t leave your dream build to chance. Take control of your future, armed with the knowledge and steps outlined in this checklist. Before you sign, make sure you’ve diligently investigated every aspect of your chosen section. Your peace of mind, and your financial security, depends on it. Start your due diligence today and build the future you envision!
