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Building Act 2004

Consumer rights and remedies in relation to residential building work - Offence by commercial on-seller

362V: Offence for commercial on-seller to transfer household unit without code compliance certificate

You could also call this:

“If you sell a house you built or fixed up, you can't let the buyer move in until it's checked and approved.”

If you sell houses for a living, you can’t do certain things before getting a special certificate called a code compliance certificate. You can’t finish selling a house or let someone move into it before getting this certificate.

There are some exceptions to this rule. You and the person buying the house can agree in writing that it’s okay to sell or let them move in before getting the certificate. Also, if the house is made of parts built by a special registered maker, they can sell it without the certificate.

If you made an agreement to sell a house before 30 November 2004, you don’t need to follow this rule.

If you break this rule, you’re committing a crime. If you’re caught, you might have to pay a fine. If you’re just one person, you could be fined up to $300,000. If you’re a company, you could be fined up to $1,500,000.

A ‘commercial on-seller’ is someone who builds houses, gets others to build houses, or buys houses from builders to sell them. It also includes people who try to avoid following these rules by buying and selling houses in tricky ways.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6371151.

Topics:
Housing and property > Home safety and repairs
Housing and property > Buying and selling homes
Business > Industry rules
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362U: Purpose of regulations under section 362T(2), or

“These rules make sure homeowners know who built their house and how to take care of it.”

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362VA: Building product information requirements may be prescribed, or

“Rules can be made about what information needs to be shared about building products.”

Part 4A Consumer rights and remedies in relation to residential building work
Offence by commercial on-seller

362VOffence for commercial on-seller to transfer household unit without code compliance certificate

  1. A commercial on-seller must not do either of the following things before a code compliance certificate is issued in relation to a household unit:

  2. complete a sale of the household unit:
    1. allow a purchaser of the household unit to enter into possession of the household unit.

      1. Subsection (1) does not apply if the commercial on-seller and the purchaser of the household unit enter into a written agreement, in the form (if any) prescribed by regulations made under this Act, that the commercial on-seller may do either or both of the things referred to in that subsection before a code compliance certificate is issued in relation to the household unit concerned.

      2. If a household unit is a modular component manufactured by a registered MCM who is certified to design and manufacture it, subsection (1) does not apply to the sale of the household unit by the manufacturer.

      3. Subsection (1) does not apply if the contract for the sale and purchase of the household unit was entered into before 30 November 2004.

      4. A person who fails to comply with subsection (1)—

      5. commits an offence; and
        1. is liable on conviction,—
          1. in the case of an individual, to a fine not exceeding $300,000:
            1. in the case of a body corporate, to a fine not exceeding $1,500,000.

            2. In this section, commercial on-seller means a person who, in trade, does any of the following things in relation to a household unit for the purpose of selling the household unit:

            3. builds the household unit; or
              1. arranges for the household unit to be built; or
                1. acquires the household unit from a person who built it or arranged for it to be built; or
                  1. acquires the household unit in a transaction that is intended to defeat the purpose and effect of subsection (1).

                    1. On section 6(3) of the Building Amendment Act 2012 coming into force, and in the following order,—

                    2. first,—
                      1. the heading to this section is amended by omitting code compliance certificate and substituting consent completion certificate; and
                        1. subsections (1) and (2) are amended by omitting code compliance certificate and substituting consent completion certificate; and
                        2. second, this subsection is repealed.

                          Notes
                          • Section 362V: inserted, on , by section 56 of the Building Amendment Act 2013 (2013 No 100).
                          • Section 362V(1): amended, on , by section 83(1) of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).
                          • Section 362V(1)(a): amended, on , by section 83(2) of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).
                          • Section 362V(1)(b): amended, on , by section 83(3) of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).
                          • Section 362V(3): replaced, on , by section 83(4) of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).
                          • Section 362V(4A): inserted, on , by section 83(5) of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).