Time Limit
Even if liable parties have been identified, their liability is not limitless. Although the Building Act clearly defines the responsibility of the builder, the developer, and the council to ensure a building is built in conformance with the building code, just because it is not, and leaks, does not automatically mean they must pay for the repairs.
Both the Building Act and the Weathertight Homes Resolution Act set a 10-year limit for claims against other parties. This is comparable to a warranty on a car,
or electronic appliance. A certain amount of warranty is necessary to maintain quality in the industry, but it must end at some stage.
If a car or appliance fails after the warranty period has ended, consumers have the Consumer Guarantees Act to protect them, if it comes to that. Once the 10-year limit has ended for buildings though, there is nothing. Just as builders, developers and councils are forced by legislation to take responsibility for their actions for that first 10-years, so too are they completely released of responsibility the day after that limit ends.
To break it down, there are really three 10-year 'long-stops' as they are often called. If any one applies, you may have a case:
- 10-years since the 'act or omission' which resulted in the building non-compliance. This can apply to the builder, or developer usually. (Building Act 2004)
- 10-years since the Code Compliance Certificate (CCC) was issued. This usually applies to the council, and is often useful to leaky home owners when the CCC was issued years after the house was completed. (Building Act 2004)
- 10-years after the house was "built". This is the criteria for a Weathertight Homes Tribunal Claim, and doesn't directly apply to, or exclude any parties to the claim. The word "built" is a fuzzy one, and quite often arguable. For the most part, it means the final CCC inspection. (Weathertight Homes Resolution Act)
In some cases private negotiation, or legal arguments after the 10-year time limit has passed may glean a small amount of compensation for repairs, but the potential for success is relatively small.
Therefore, it is extremely important that owners of leaky homes, or any owner that wishes to begin a dispute with their builder, developer, or council do so within 10-years of the home being built.
