DISCLOSURE REQUIREMENTS WHEN SELLING A LEAKY APARTMENT
There are important things to be aware of ahead of time when preparing to sell an apartment that has, or may have leaky building issues.
If you own a unit in a leaky apartment building, you may have concerns around whether to repair and stay on, repair and sell, or sell prior to repair at a lower price.
If you suspect weather tightness issues due to your building’s age or cladding, your real estate agent is obliged to disclose the potential risk to prospective buyers and include it in their property information pack with other material.
THE GOOD NEWS: LEAKY APARTMENT BUYERS DO EXIST!
- There are still buyers for leaky building apartments, usually risk calculating investors and developers.
- Leaky apartment buyers look for buildings where the scope of damage and repair costs are known and Body Corporate levies to cover repairs are already set.
- If repairs are too expensive, look at renting your apartment out until land values improve enough to off-set the cost.
PREPARE FOR THE SALE OF A LEAKY APARTMENT
- Evidence to support weather tightness can include building reports, specialist weather-tightness reports, council files and a LIM report.
- Consider obtaining a building inspection from a Licensed Building Surveyor before you put your property on the market.
- Get a registered valuation for the property in its current condition.
- Sometimes testing will be necessarily invasive, holes in walls for instance. Find out what is involved before the process begins.
REPAIR OR SELL YOUR APARTMENT?
Repairs to leaky apartment buildings can take years, tying you to an investment you may have lost the love for.
Some sell their apartments and cut their losses. This can mean selling for well below what the apartment should be worth, emphasizing the need to get an accurate value by a real estate agent who is an apartment specialist.
Managing the sale of a leaky building apartment requires the utmost transparency, care and due diligence. We can’t emphasise enough the value of using the right professional services.
- We can help you find real estate agents who are apartment specialists. We offer a free service to sellers, providing a short list of the best apartment selling agents for your location.
- We can also provide you with an industry list of specialists such as property lawyers, valuers and building inspectors who can help you navigate the sales process.
Need help selling your leaky apartment? Get in Touch now.
OTHER APARTMENT BUILDING DEFECTS - ASBESTOS
Asbestos removal can be costly depending on how much there is. Do you repair before sale or sell it as is?
You must reveal anything you know about contamination and must not mislead a potential buyer.
Make sure you, your lawyer, your building surveyor and your real estate agent are all on the same page about this.
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Article updated February 16, 2023 by Trish Willis | Member of Property Institute of NZ (IPAC)