Buying Property? Do your due diligence
When buying property, be aware of all approaches and tools that can build certainty and reduce your risk.
The degree of due diligence varies, depending on the quality of information you receive and the time available.
When doing an information search, buyers generally do title searches, Land Information Memorandums and builder’s reports. However there are other approaches and tools available under the Resource Management Act and engineering practices.
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Resource Consent for Buildings
The resource consent process identifies issues and determines solutions to achieve the certainty you need and arrive at an approved outcome. Sale and Purchase agreements are regularly made conditional on obtaining resource consent (3-4 months should be allowed to complete this process).
Subdivision
In subdividing land, you should understand servicing costs and viability through preparing a conceptual scheme and identifying areas of potential risk. One site may have geotechnical challenges, another needs the wastewater main upgraded. Identifying these issues early and understanding cost implications will help you in determining the project’s likely success.
IEP and Geotechnical Assessments
The seismic stability of older buildings should be investigated through an Initial Evaluation Process (IEP) to identify if upgrade works are necessary. Similarly, geotechnical assessments can be carried out on vacant sites to identify any specific foundation design for new buildings.
Existing Use Rights Certificate
For existing activities, you can apply for an Existing Use certificate to confirm if you can continue this activity or carry out a similar activity. A similar activity has to be similar in scale, character and intensity, but provided the original activity was legally established, it may be appropriate (alow a 3-4 month period).
Water Takes/Wastewater Discharges
We recommend you research water takes and wastewater discharges expiry dates and confirm the ability to continue these activities. Again, you might need resource consents.
Every due diligence exercise will be different. Make sure you are clear on what you need to know with the necessary technical experts, ensuring the due diligence period is sufficient for the information needed.
Catriona Eagles is a Senior Resource Management Planner for Cheal Consultants Ltd and full member of the New Zealand Planning Institute.