Property owners urged to use qualified surveyors

A shonky building inspection created major fallout for three property owners.

Last month the High Court ruled that Mike and Sharon Hepburn and Tracey McKinnon had been misled by the inspection report for the property in Khandallah, Wellington.

The inspector had stated the house was in generally good condition, with some minor work required. He signed a certificate of inspection. 

Nick Hill, chief executive of Building Officials Institute of New Zealand, says BOINZ has developed ABS (accredited building surveyor) accreditation to provide home buyers with confidence.

The High Court heard that the Hepburns and Mrs Hepburn’s sister, Tracey McKinnon, agreed to buy the 260sq m house in 2007, conditional on a satisfactory pre-purchase inspection report.

The real estate agent provided details for pre-purchase inspector Trevor Cunningham, a one-man business based in Johnsonville, and operating as ABS Contractors and Cunningham Consulting.

The buyers paid $652,500 for the property.

But when they decided to sell it in 2010 they received an offer subject to a satisfactory property inspection.

That inspection, carried out by Realsure, a BOINZ accredited surveyor, found serious weather tightness issues which were subsequently confirmed by the Weathertight Homes Resolution Service.

The owners also found that Realsure had also carried out inspections on the property for two other potential buyers shortly before they bought it and both had withdrawn their offers after issues in the reports.  

The Hepburns launched legal action against Mr Cunningham and his business for breach of contract, negligent mis-statement and breach of section nine of the Fair Trading Act

They also took action against the real estate agent Elizabeth Capovilla and Tommy’s Real Estate, which were settled in 2012.

Justice Joe Williams awarded the plaintiffs gross damages of $364,649,53 plus interest – less 50% in contributory negligence because they had not carried out remedial works recommended in the ABS report.

Details are still be worked out but the plaintiffs may end up with around $200,000 between them.

c.hutch@clear.net.nz