Buyer Beware! Pre-Purchase, Due Diligence
by paul@theplanningroom - The Planning Room Ltd
Every site within New Zealand has a zone or zones attached to it with every zone having a subsequent set of rules that help shape the site and its surrounding area.
Having knowledge of the different zones, the rules associated with each zone, and the activities anticipated within the zones can allow an informed decision to be made based on what the overall goal is for a site, or a building.
On several occasions we have seen or have heard from disgruntled land owners or lease holders who have jumped into an agreement or purchased a property without undertaking or seeking professional planning advice in regards to planning rules and regulations. Examples include owners hoping to subdivide without checking the capacity of Council’s infrastructure; owners having purchased a property having misread / misunderstood the density requirements; or new investors purchasing a property to find the minor unit advertised is illegal and cannot be used for rental purposes.
If the above horror stories aren’t enough to highlight the importance of pre-purchase due diligence it is hoped that the benefits to be outlined below encourage the undertaking.
Benefits in engaging a Planner at the frontend can include; the identification of development potential and constraints on a site; whether an existing building can be added to and the extent of an addition; if subdivision is possible; whether any existing use rights exist; if a minor unit can be established; or if a non-residential activity or home occupation is likely to be granted amongst other things.
The Planning Room offers a range of pre-purchase services to cater for the individual needs of our clients. Our services include: the tabling of development controls; the preparation of scoping / feasibility reports; property file checks; and the preparation and lodgement of resource consent applications prior to purchase which provides additional certainty.
The Planning Room would be happy to assist you in undertaking such due diligence and preparing subsequent Resource Consent applications if required. We can provide you with a quote for all planning services and can also brief and/or instruct other professionals as required.
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