What are leaky buildings?

These are mainly modern buildings, the majority built during the 1990s, which have one defect or
another which allows moisture to enter into the building structure.

The trapped moisture can rot the building framing and/or support mould growth which can have
deleterious health effects.

Some of the Identified Causes

There have been numerous causes identified and there is no single simple solution:

  1. The use of untreated timber in the framing. When this becomes wet, it rots.
  2. Use of impermeable insulation which restricts or prevents air flow. Because there is none or
    limited air flow within the cavity the framing is prevented from drying out. This leads to an
    environment that supports mould and fungus growth and thus causes the timber to rot.
  3. Inadequate construction material & fixing. . Monolithic cladding systems, such as textured wall
    surfaces made out of plaster on polystyrene or fibre cement sheet have been identified as
    being potentially problematic. Sometimes these they have been used outside their
    specifications or have been installed incorrectly.
  4. Poor construction methods and design - Inadequate construction that did not allow for
    deflection, drying and drainage or had insufficient durability and included features such as:

  •        Recessed windows.
  •        Flat roofs with narrow or no eaves.
  •        Two or more stories.
  •        Design features such as solid balustrades, complex roof design and envelope shapes
          where roofs frequently intersect with walls on upper floors.
  •      Balconies that jut out from the walls.
  •      Penetrations through the claddings.

How to avoid purchasing a leaky home?

Many of these have now been identified and are known, check with the agent and or the local authority.
However if purchasing any home built over the period 1985-2005, insist that the Building Inspector
carries out adequate moisture testing.

What if you already own a leaky home?

On 1 April 2007, the Weathertight Homes Resolution Services Act 2006 (the WHRS Act) came into
force. The new WHRS Act makes changes to improve the effectiveness and efficiency of the services
provided under the WHRS Act and deliver better outcomes for owners of leaky homes.

The purpose of the WHRS Act is to provide speedy, flexible and cost-effective procedures for resolving
leaky home disputes as an alternative to the courts.

The WHRS Act is administered by two government agencies.

  • Weathertight Services at the Department of Building and Housing receives claim applications
    and provides assessment, information, guidance and mediation services.
  • The Weathertight Homes Tribunal supported by the Ministry of Justice, is a judicially
    independent Tribunal that provides adjudication for claims.

How to bring a WHRS claim

To bring a WHRS claim, the:
  • Claim must be brought by the owner(s) of the house.
  • House must be used principally for residential purposes.
  • House must have been built or altered within the 10 years immediately preceding the date of
    lodging the claim.
  • House must be or have been leaking (water is entering the house from outside).
  • House must be damaged as a result of the leaks.

Assessment

If a WHRS claim is accepted for an assessor’s report, an independent expert assessor will be
commissioned to investigate the house or complex and provide a report to Weathertight Services.

The claimant can choose between two kinds of report:

  • A full assessor’s report costs $500 for a stand-alone property or single unit claim, $1000 for a
    duplex (2 units) or $1500 for a multi-unit complex.
  • An eligibility assessor’s report is free of charge.

The assessor will be looking to see if your house is a leaky building, i.e. One where water has got into
the house as a result of:

  • any aspect of its design, construction or alteration, or
  • the materials used in it.

To qualify as a leaky building, damage must have been caused by the leaks. If the claimant chooses a
full assessor’s report the assessor will also consider the cause of water entering the house, the extent
of the damage (both actual and potential), the work needed to make the house weathertight and repair
the damage, and the estimated cost of the work.

The assessor also gives their view of who should be parties to the claim, for example, the builder, the
person supplying the materials, the designer, the local council inspector, or all of them. It is then up to
the claimant which parties they wish to pursue.

Following the assessment, the Chief Executive of the Department of Building and Housing will make a
decision on whether the claim is eligible to proceed to the resolution stage. If in the assessor’s opinion
the claim is ineligible the claimant will be given a chance to make a submission to the Chief Executive
on eligibility before a decision is made.

If the claim is decided ineligible and the claimant disagrees with the decision, they can apply to the
Chair of the Weathertight Homes Tribunal to have the eligibility of their claim reconsidered.
Leaky Homes
PO BOX 9018, Wellington 6141 | phone: (04) 240-0124 | fax: (04) 232-4414 | email: valuer@ vcnz.co.nz
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