Leaky homes and now leaky buildings

By | November 22, 2011

An October Supreme Court decision (Body Corporate No 207624 & Ors v North Shore City Council [2012] NZSC 83. ) now means that if the property is a leaky building, non-residential property owners can claim against a local authority. Until now it had only been residential property owners who could claim as it was believed that they were more vulnerable than commercial property owners.

The case concerned the Spencer on Byron building in Auckland’s Takapuna, whose 249 units were leased to a hotel manager for 10 years. The building had been constructed in 2000-2001. The North Shore City Council had inspected the building and issued code compliance certificates under the Building Act 1991.

The court found that there was no policy reason to differentiate between residential and non-residential property owners. Non-residential property owners with a leaky building can now claim against the relevant council which inspected and certified the construction.

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Copyright, NZ LAW Limited. Editor: Adrienne Olsen. E-mail: adrienne@adroite.co.nz. Ph: 029 286 3650.

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