For New Zealand's property owners struggling with leaky building litigation were delighted by recent developments in the legal arena. In addition to exciting updated status reports concerning the government's bailout proposal, new precedents are being set in the courtrooms that set the stage for more effective damage claims and better outcomes for property owners.
Welcome relief to home and property owners of leaky homes and buildings is on its way in the form of a government bailout program that is slated to establish a $1 billion package to assist New Zealand property owners with repairs to damaged buildings. The bailout works in conjunction with local agencies, which would provide 25% of the proposed 50% payment of damages. Currently, the bailout package is locked up in the courts mostly due to the difficulty in reaching an agreement with the eight largest retails banks that would be affected by the plan.
The main issue slowing the package's progression is the banks' reluctance to lend against damaged properties without complete support and guarantees from the government itself. What will result, ultimately, is more of a 'loss sharing arrangement' between the government and the banks, according to a spokesman of the Bankers Association. For property owners with hefty repair bills mounting, the package agreement cannot be approved soon enough, and a bank agreement means that their loan needs will be 50% less than they would be without governmental assistance. Government officials are hopeful for great progress on the proposal in 2011, which is welcome news for those affected by New Zealand's leaky building epidemic.
In other current developments, investors who own leaky buildings are grateful for a positive end to a five year battle due to a recent legal victory. Apartment building owners recently defeated the North Shore City Council's judgment that would disallow them to be awarded damages to repair their investment properties damaged by leaks. It was determined that the Council was, indeed, negligent in its efforts to inspect new construction, and actually failed to identify structural defects that may contribute to future moisture damage. The outcome of the win for investors is an expansion of the number of people who are eligible to sue city councils over leaky building issues.
2011 promises to be an exciting year in the field of leaky building litigation, as hopeful home and property owners are beginning to see a light at the end of the tunnel after years of battling government agencies and city councils alike. There are still many unresolved issues that hamper the progress of many aspects of leaky building litigation, but home and property owners are feeling hopeful for the first time in a very long time.
Grimshaw & Co. are the leaky home law firm and leaky building litigation specialists with expertise that New Zealand's property owners of leaky homes and buildings depend on for specialist legal assistance. For information and updates on leaky building litigation or to book a free initial consultation, visit Grimshaw online.
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