Would I be better selling ‘As Is Where Is’ or repairing my home?

Would I be better selling ‘As Is Where Is’ or repairing my home?

21 May 2019 | as is where is

Arete Property are happy to advise of the best outcome for you. Not only do we purchase ‘As Is Where Is’ properties but we also repair them on behalf on clients who have been cash settled. It can overwhelming to undertake on your own but Arete Property are experienced in the art of converting an ‘As Is Where Is’ property into a fully repaired, renovated, insurable home/building. 

Arete Property have been involved in well over 150 full repairs and we would bring this knowledge and experience to your project. As long as we deem your property to be repairable, we are happy to help you through the project from start to finish. Our building company – Monarch Construction – are experienced in the As Is Where Is repair methodology and bolstered by a team of reliable sub contractors, we manage your project in an efficient and communicative manner.

How do I begin the repair process with Arete?

1. Firstly, we visit the property to chat about your options, budget and expectations. 

2. We then scope the project to ensure it’s suitable for repair. Once both parties are happy that the property can be fully repaired and renovated to the clients expectations then we engage the engineering team to commission a new, up to date report.

3. We work to the latest engineering report which is our road map back to a reinsurable standard. We can read EQC scopes but these are quite often outdated. Being 8 plus years old and not completed by qualified engineers, they’re often surplus to requirements and a new structural engineers report supersedes older documentation. 

4. Arete and Monarch Construction will quote the job from start to finish and ensure that it fits with the client’s budget and time-frames. Once a scope is agreed, we organise time-frames to begin the project. If you need to move out of the dwelling during the repair, Arete have a number of options for short-term accomodation in one of our luxury rental homes. 

5. Arete submit all required documentation to council and once approved, Monarch Construction will begin the project. We can even handle the Contract Works Insurance Policy which is required to insure you for the value of work being carried out on the property. 

6.  Monarch Construction prepare the site and communicate throughout the project. We can handle all foundation works from Type B – ring foundation and piles – to Type C -concrete slab – we can work to all TC classifications (TC1, TC2 and TC3) and a PS1 (Producer Statement) supplied by a structural engineer will be the guideline to ensure the foundation is fully repaired. The property will simultaneously internally renovated/repaired as per the client request, again we can handle this aspect of the job.

7. Once structural works are complete, we can offer assistance in the application for full insurance. The Producer Statements supplied by the contractors including the all important PS4 (engineers sign off) from a structural engineer will provide the re-insurer with full confidence that the dwelling has been competently repaired. 

Arete Property aim to make the ‘As Is’ repair methodology as easy and pain-free as possible. So if you have just received your cash settlement from your insurance company and want to do your own repairs, contact us today to see how we can help you.

Selling blocks of flats and unit title properties on an As Is Where Is basis.

Selling blocks of flats and unit title properties on an As Is Where Is basis.

1 Mar 2019 | as is where is

Selling a unit title property or flat on an As Is Where Is basis quite often has a few more considerations involved compared to a basic standalone freehold building with one owner. But, it doesn’t have to be crazy complicated. Here are a few pointers to help in your decision making process.

Type of Title

Is your title freehold or cross-lease? It is actually a breach of cross-lease to be un-insured, this is where you should seek legal advice about accepting a cash offer from your insurers and selling As Is Where Is. It also depends on how well you get along with other owners involved in the cross-lease; an amicable relationship is often conducive to a smooth ‘As Is’ sale, as long as the owners are happy with the incoming purchasers’ intentions.

Cross Lease

Imagine leaving all of your neighbours and other cross-lease owners in a predicament if a new purchaser decides not to repair – this is often the case with out-of-town investors who buy As Is cheaply and don’t repair and mortgage, then rent them. This increases their returns if they bought it cash, however, this strategy is harmful to neighborhoods and communities. Properties can quickly become ‘cash-flow eye-sores’. 

Freehold

Freehold can be easier depending on the number of other freehold units that comprise the block. Different owners may share a firewall, but not share an insurer! This is when it gets a little tricky but as long there is cooperation, issues can get resolved.

Should I sell my As Is Where Is unit singularly or as part of the block?

If possible, sell the block in entirety rather than individually. As purchasers, we’d prefer to purchase as a block and carry out all the repairs asap to reinstate insurance. From a sale point of view, you can command a much higher sale price by all selling together, it’s a much more appealing proposition for a buyer.

However, selling the block in its entirety isn’t always possible. In the past, we have purchased 4 out of 6 units in a block of 6 individually titled units and carried out the repairs in tandem with the other 2 units. This was beneficial to us all. The 4 owners sold As Is and carried on with their lives and 2 got the repairs they wanted alongside our repair methodology – with costs split equally and we managed the repairs for the other 2 owners.

Is it easy to sell ‘As Is Where Is’ if some units are tenanted and some owner occupied?

We understand it can be difficult to get all people on the same page, especially if there is a large number of people/units involved in the transaction. Here at Arete, we try to keep things as easy as possible. If some owners want to stay, we are happy to chat about their intentions and our intentions, hopefully, they align. 

We have experience in an array of scenarios. We have taken over tenancies in the past, we have moved tenants out briefly whilst the repairs are taking place but we move them back in asap, usually to a freshly renovated property, so they are generally pretty happy! 

The only problems we run into are ‘stick in the mud’ owners who refuse to cooperate. This can be detremental to the sale of a block, hamstringing us as purcahsers and all of the other owners looking to move on.  We will always try to lend a hand to explain this and hopefully get everyone back on the same page.

As with all our dealing with As Is Where Is sales, we like to keep things nice and simple.

Do you have a unit title or block of flats you want to sell?

Give us a call today on 0800 568 568 or email
enquiry@areteproperty.co.nz to find out if we can help you sell your unit title property or block of flats, As Is Where Is.

Do you own a Unit Title on an Earthquake Damaged apartment or Townhouse? What you need to know before you sell.

Do you own a Unit Title on an Earthquake Damaged apartment or Townhouse? What you need to know before you sell.

22 Feb 2019 | as is where is

Unit Title and Body Corporate ‘As Is Where Is’ Sales

selling unit title as is where is

Owning a unit in a body corporate, unit title complex has positives and negatives. Maintenance and communal facilities are generally well looked after but when it comes to accepting earthquake settlement and becoming uninsured, things can get a little tricky.

Dealing with Earthquake Repairs when you are part of a Body Corporate.

Unit title properties are governed by the Unit Titles Act 2010 (“the Act”).  All unit owners in a unit titled development make up a Body Corporate. Body Corporates are all insured under one insurance policy. This makes dealing with EQC and the insurer a little easier than if all owners of a cross-lease building were individually insured with a swathe of different insurers. However, getting multiple body corporate owners to move in one direction once a cash-settlement has been made is another story! Some may want to repair, some may want to sell As Is, that’s when the issues arise

Over the years, Arete Property have encountered body Corporates at loggerheads with decisions;

1. The Body Corporate accepts a managed repair from the insurer?

2. Accept a cash settlement and repair as a body corporate (as per section 138 of the unit titles act 2010)?

3. Accept a cash settlement as sell ‘As Is Where Is’?

All 3 of these have their catches. The unit titles act 2010 states that the body corporate must have a principal insurance policy in place for the building. Accepting a cash settlement would mean that the building and the body corporate would be in breach of the unit title act.

An As Is Where Is Sale is a great idea when you want to move on to your next chapter

This is why it is good to have an ‘As Is Where Is’ sale lined up on acceptance of the cash settlement so the new owners take over the obligations of the body corporate.

Arete Property Can Purchase Your Unit Title Blocks

We have previously purchased unit title blocks in their entirety and alongside owners who wanted to remain part of the body corporate and repair the dwelling alongside us. So there is always an option, call us today to find out how we can help.

Make sure you get good advice

*We must stress that we are not lawyers and anyone considering their options as part of a body corporate should seek relevant legal advice.

Register for a Free Appraisal

If you are looking for an As Is sale option, we are happy to appraise and offer advice based on our past dealings with body corporates.