Among the legal documents you’ll encounter when buying a house is the disclosure statement. This is where the vendor must outline any known issues or defects with the property.

For first-home buyers, it’s tempting to push forward quickly when you’ve found a place you like. However, if any defects are disclosed, it’s crucial that you speak with your lawyer before signing anything.

We regularly help first-home buyers assess property disclosures and ensure they’re fully protected before moving ahead.

What is a disclosure statement?

In New Zealand, the vendor is legally required to disclose any known issues with the property. This can include:

• Structural defects

• Weather-tightness concerns (including leaky buildings)

• Unconsented work or additions

• Old wiring, plumbing, or roofing

• Boundary issues

• Damage or deterioration

These disclosures are meant to help you make an informed decision, but they can also impact your ability to get finance, obtain insurance, or resell the property in the future.

Once a defect is disclosed, you need to understand what it means for you - legally and financially. This is where we come in.

We will:

• Interpret the disclosure: We explain what the issue is in plain language and how it may impact your purchase.

• Assess risk: Not all defects are deal-breakers, but some may seriously limit your ability to get a mortgage or insurance.

• Add protective clauses: We ensure the sale and purchase agreement includes the right conditions, such as being subject to a satisfactory building inspection, finance approval, or due diligence.

• Coordinate with experts: If needed, we can refer you to trusted building inspectors, finance advisors, and insurance brokers to assess the full picture.

• Review council records: We can request and review the LIM (Land Information Memorandum) and property file to check for unconsented work or historical issues.

In short: Don’t let pen touch paper till your lawyer has reviewed it with the disclosure in hand.