Selling your home – what you need to know about warranties

September 18, 2013

in Property

Property: HousingWhen you are selling your home, it’s almost inevitable that you will be providing certain warranties to the purchaser, about matters such as any work that has been done on the property and that all work and improvements undertaken on the property are certified and compliant with Council regulations.  You need to be aware of the serious implications for you if you breach any of the warranties provided.

If work has been carried out on the property by you, prior to selling then you will need to make the purchaser aware of those works and provide warranties in the Sale and Purchase Agreement (“Agreement”) that;

(a)  Where the work required a permit, building consent or resource consent, that you have obtained that permit or consent;

(b)  That the works completed are to the best of your knowledge compliant with the permits and resource or building consents;

(c)  If one was needed, a Code of Compliance Certificate was issued for those works

In any Agreement you will also be providing warranties as to the chattels that will come with the sale of the property.  When giving those warranties you are providing a promise to the purchaser that they will be in the same state and “reasonable working order, where applicable” at the date of settlement as they were on the date the Agreement was signed.

A number of legal remedies are available to the purchaser if you breach any warranty you have given.  It is therefore crucial that you are clear what legal obligations attach to providing such warranties.  It is equally important that purchasers carry out inspections before buying the property and seek their own legal advice.

If you are unclear on your obligations under the Agreement then you could face potential claims for compensation or court action for cancellation and remedies.  It is therefore crucial you seek legal advice before buying or selling a property.

If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co who normally advises you, or alternatively contact:

Kirsten Maclean

(03) 477 8870 or (09) 379 0055


The information contained in this publication is intended as a guide only.  It does not constitute legal advice and should not be relied upon as such.  Professional advice should be sought before applying any of the information to particular circumstances.  While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain. 

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