What on earth are you buying? Beware of boundary problems

October 22, 2014

in Property

Property: HousingAs the number of new building consents edge back to 2007 levels, many home buyers are resorting to purchasing their home “off the plan” or as a “house and land package” given the relatively low supply of existing houses for sale.

This may have contributed to the competitive behaviour of builders and developers, as it is not unusual to be advised of defective workmanship with respect to the quality of the building or the positioning of the fences from time to time.

In one extreme situation, the writer was advised of a situation where a new home owner was served a notice by their neighbours to reposition the fence to the correct boundary line. They lost approximately 20 square metres of their (already small) land area and the decrease in value was estimated by the new home owner to be more than half of the deposit that they had paid to purchase the house.

The standard Auckland District Law Society Agreement for Sale and Purchase of Real Estate provides that the vendor is not required to point out the boundaries of the property except on the sale of most vacant residential lots of bare land.

As a result, it is up to the purchasers to perform their own investigations to confirm the boundary. We assist new home buyers and developers by advising them of the risks associated with “off the plan” or “a house and land packages” sales and on due diligence investigations.

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:

Steven Lee
09 379 0055 or 03 477 8870


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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