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Q: My partner and I bought a house 10 years ago. We decided not to do too many inspections on the property to save money.Our lawyers also think it’s good
Area Buy the area without spending too much to check it out.

My partner and I broke up two years ago and I ended up taking over the property. I went to sell the property last month and requested a full building inspection. I was shocked when I found out that the house was a leaky one.

We also did not review the Land Information Memorandum before we purchased the property. Planning rules dictate who can build multiple dwellings on our streets, and now, the property next door can build seven townhouses on top.

I think the value of the house is much lower than what I bought from my partner. What can I do?

A: Your situation is very difficult. You have many real estate-related variables, including leaky homes, planning rules, and a declining real estate market. I recommend that you obtain complete property documents from the time you and your partner purchase the property.

I also recommend that you pay attention or look for a record of what was discussed between you and your partner at the time of the purchase and any terms of the relationship property agreement. It is important to gather information in order to provide a factual basis for your claim.

leaky home

Did you and your partner know it was a leaky home when you bought it? How much did your family leak when you were together, and how much has it leaked since then? You need to know the cost of repairs, which can be prohibitive.

planning rules

How much is your property affected by any planning rules? Your lawyer can advise you on this.

property value

When you buy from a partner, it’s important to get a proper appraisal of your home compared to the current appraisal.

Resolution

Consider the prospect of a settlement between the two of you, as lawyers can be expensive. In my experience, the pattern is that the longer things go, the higher the legal fees and the harder it is to resolve.

Mediation

If verbal or written results with your ex-partner do not yield results, informal mediation may be helpful. While mediation is a voluntary process, it is a way for both parties to express their interests and try to resolve them within a day. The FDR Center is an agency that can help you organize a mediator.

Is your original lawyer responsible?

The attorney who advised you and your partner on the original purchase may also have some responsibility. Try to find any advice they have written and check if they are still practicing as a lawyer.

Court opinion

Your partner may suggest what we call buyer self-insurance (buyer beware). According to this principle, you should make reasonable enquiries so that you can make an informed purchase from him. Reasonable enquiry may include looking at the LIM beforehand.

On the other hand, you can say there is a common bug. In most cases, one partner buys another partner’s property without a sale and purchase agreement. There is only one assignment agreement to cover such matters. The inquiries of the party buying the property are usually far fewer than the couple buying the new property. Reasonable enquiry does not include obtaining LIM.

in conclusion

These cases are messy and need to be resolved early. To be successful, they need great project management and lots of professionals around you to solve the problem.

New Zealand’s court system is currently overwhelmed. A full hearing in the relevant court may take 2-3 years from the time a lawsuit is filed. This is too long for many and therefore the professional cost of resolving the case is too high. Early resolution of these cases through ADR becomes very attractive. Mediation is one example. Good luck.