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Several earthquake damage repairs overseen by the Earthquake Commission (EQC) and Fletchers has resulted in ‘botched’ repairs making the road repair a long and difficult journey.
Following these botched repairs, a $300,000,000 fund was established and the ‘on-sold program’ was born.
This enabled owners to apply to have their home repaired if earthquake damage, unrepaired damage, or botched repairs were discovered. Because of these issues, many homeowners in Christchurch have decided to sell their homes “as is where is.
First, selling a home “as is where is” can be a faster and simpler process than going through the ‘on-sold’ scheme. However, some downsides of selling an “as is where is” include the sale price is likely to be lower than if it had been repaired.
In this article, we are going to deep dive into the pros and cons of the ‘On-sold’ repair scheme and selling “as Is Where is”.
In December 2021 we received a phone call from a client seeking advice about the sale of his property. It had recently been repaired by fletchers under the EQC (Earthquake Commission) scheme however a prospective purchaser obtained a building report and realized that the foundations were out of level.
What happened?
The new purchaser was declined insurance and subsequently finance so they had to cancel the agreement and walk away as the property had structural earthquake damage that was outside of the MBIE guidelines (NZ building code).
The Owner was left with three options
Repairing the foundations required a substantial amount of money that wasn’t available to the owner and re-opening the Insurance claim with EQC was going to take too much time and stress.
Although selling isn’t always the best option for everyone, opting for an As-Is Property Sale was this client’s preferred exit strategy.
Here’s what he had to say..
And here’s how the project turned out..
Following the Canterbury earthquakes New Zealand government’s EQC organization dealt with repairs to homes damaged in the Christchurch earthquakes.
It has been widely criticized for its handling of repairs, with many homeowners claiming that the repairs carried out by EQC were substandard and inadequate and in some cases outright negligent.
This has led to ongoing issues with leaks, cracks, and other problems. Additionally, some homeowners have reported that EQC contractors have failed to properly address issues such as foundations being out of level and even asbestos in their homes.
1. Review your file: EQC will have a file on your property that details the repair work that was done. Visually inspect the areas that were repaired by EQC to determine if there are any visible signs of substandard workmanship or materials. Look for cracks, bulges, or other signs of damage.
2. Seek a professional assessment: If you are not confident in your ability to determine if the repairs were carried out properly, consider seeking the advice of a building inspector, engineer, or other professional who has experience with EQC repairs.
If you believe that the repairs carried out on your property were poorly conducted, you can contact EQC and raise your concerns. They may be able to provide additional information or arrange for a reassessment of the work.
The specific process for reopening an EQC claim may vary depending on the nature of the botched repair and the individual circumstances of your case. EQC provides cover for the first $100,000 + GST of earthquake damage to your home and contents.
Your insurance company provides additional cover for damages above this amount. The exact amount and types of compensation you are entitled to will depend on the specific circumstances of your case and the terms and conditions of your insurance policy.
If your claim is not being processed or you are dissatisfied with the outcome, you may wish to seek legal advice and consider taking legal action.
In conclusion, the botched repairs and process of the ‘On-Sold’ scheme have been a bit of a nightmare for homeowners. Regardless of where you are in the process, Your Property Solutions is here to help.
Whether it’s an inspection of botched repair work or a no-obligation free appraisal on your property in an as is where is condition please get in touch with our team today.
Talk soon
Billy 
