Scroll through the terms and conditions applicable to inspection reports prepared by House Pre-Purchase Inspections Ltd, from here on referred to as HPPI, below.
Terms and Conditions
These terms and conditions are between House Pre-Purchase Inspections Ltd (“HPPI”) and you, (hereinafter “Client”), collectively referred to as “the Parties”.
The Parties understand and agree:
- HPPI shall carry out their services with reasonable skill and care. HPPI shall exercise the degree of skill, care and diligence normally expected of a competent pre-purchase inspector in similar circumstances subject to any financial, physical, time or other restraints imposed by the Client or necessarily resulting from the nature of the service.
- Unless otherwise expressly agreed, HPPI shall undertake a visual and non-invasive inspection of the specified property (Inspection). The findings of the Inspection shall be set out in a written inspection report (Report).
- Unless otherwise stated, the Inspection shall not assess compliance with the New Zealand Building Code, including the Code’s weathertightness requirement, or structural aspects.
- Moisture testing will be undertaken as part of the Inspection. This is a non-invasive investigation tool that provides moisture readings. However, the Client accepts that the readings are qualitative only and may not show images of the readings or advise of the actual moisture reading. HPPI shall advise you if it considers any raised moisture readings require further invasive investigations.
- Unless a special request is made and agreed to in writing, the Inspection and Report will not address any of the following: footings; concealed damp proof membranes; concealed drainage, plumbing pipes, electrical cabling or fixtures and fittings; the operation of chimneys or fire places; floor coverings; appliances; ventilation systems; hot water systems; hazards; telecommunications; aerials; antennae; pools, spas, saunas and equipment; legal title issues; building warrant of fitness or services described on a compliance schedule; planning or resource consent issues; consent issues (although any possible issues may be notified if picked up); long term maintenance planning; heritage obligations; body corporate rules, terms of cross lease or occupation agreements
- The Client shall arrange reasonable access to the property and any locked or blocked spaces. If items prevent access, HPPI will not move any personal effects.
- The Client shall inform HPPI’s inspector of any accessory buildings and/or spaces that are to form part of the Inspection. For example self-contained granny flats, second kitchen, accessory units.
- HPPI’s inspectors will only inspect areas of the property that are reasonably accessible. For example:
- If there is an access hatch available to the roof space at least 450mm x 450mm that is not blocked, has a crawl space of at least 600mm x 600mm and is accessible from a standard 3.6-metre ladder.
- If there is access to the subfloor of at least 500mm x 400mm and a clearance of at least 400mm.
- For roof inspections the roof height needs to be accessible from a 3.6m ladder.
- HPPI is not responsible for and the Inspection will not cover any part of the building or property in which there is risk of damage to any part of the building or to which access is not reasonably and safely available to carry out a visual inspection. This may include roofs, sub floor areas and ceiling cavities.
- Access is subject to the health and safety requirements of WorkSafe New Zealand.
Drone roof inspection
- In the event that HPPI’s inspector is unable to access the roof, HPPI may use a drone to undertake a visual inspection of over height areas. Drone inspections are a visual inspection of the roof surface, to try to identify any major visible defects and weather tightness risks.
- The Client acknowledges that there are limitations in drone roof inspections in that the inspector has not physically walked on the roof. HPPI will observe images and provide advice on further actions that may be required or recommended. The Client agrees and understands that HPPI may not detect some roof defects that may have been detected had there been physical access of the roof.
- Any drone inspections to be undertaken shall be reflected in the quote provided to the Client.
- HPPI are not asbestos surveyors. If the Client requires a report on whether the building contains asbestos, the Client will need to obtain a specialist asbestos survey.
- HPPI may advise of possible concerns regarding asbestos, or comment in its Report if in its experience it expects a material to contain asbestos. However, HPPI shall not be held liable in the event asbestos is not identified. The Client must, at its own expense, arrange for an asbestos survey to fully detail materials that contain asbestos.
- HPPI recommends that a specialist asbestos survey is undertaken if the Client is planning a renovation or upgrade.
Preliminary run down
- Following an Inspection, and subject to payment of a deposit for the Report, HPPI may provide a “Preliminary Run Down” of the Inspection to the Client by telephone or in person.
- A Preliminary Run Down is intended to advise the Client of any major concerns and risk factors regarding a specific property for the purposes of providing the Client with a basic understanding of the overall condition of the property. HPPI will also advise whether any expected “special purpose reports” or recommended “further investigation” outside the scope of the Report, are required or recommended in the Report.
- The Client accepts that a Preliminary Run Down is not a verbal report and that it is intended to provide an opportunity for the Client to decide whether they wish to proceed with the purchase of the property. If, after a “Preliminary run down” the client still wishes to proceed with the purchase of the property then it must pay for the full cost of the Report in order to be able to rely on the Inspection and Report (including the Preliminary Run Down).
- Alternatively, if, after receiving a Preliminary Run Down the Client does not wish to proceed with the purchase, it may withdraw from HPPI’s services without further charge. A Report will not be provided in this instance.
- The Client accepts that should it proceed without obtaining a full HPPI Report prior to making an unconditional offer, it will have withdrawn from HPPI’s services and HPPI will not be liable for any losses suffered.
Advice and Reporting
- The Report is based on a “visual and non-invasive” inspection of the Client’s property. It expresses the opinions of the inspector, based on his or her visual impressions of the condition that existed on the date of the Inspection.
- The Report will comment on the following matters that are visible at the time of the Inspection:
- The property’s attributes
- “Major Fault or Defect or Significant Maintenance” which is defined in the Standard as “a matter which requires substantial repairs or urgent attention and rectification.”
- Weathertightness risk
- The Report is not intended to be technically exhaustive and should be seen as a reasonable attempt to identify any Major Fault or Defect or Significant Maintenance (having regard to properties of a similar age and construction type) visible at the time of the Inspection
- Where the Client requires a Report in relation to a multi-unit premises, HPPI will provide an engagement letter setting out the scope of HPPI’s Inspection. Any additional terms and conditions set out in this engagement letter are automatically incorporated into these terms and conditions.
- In multi-unit properties, the Inspection and Report shall be limited to the condition of the interior and accessible parts of the immediate exterior of the particular unit, and all related accessory units (accessory units must be advised and noted in the engagement letter or further added charges may apply).
- The Client shall identify any accessory units and ancillary spaces for HPPI’s inspector.
- Payment is due to HPPI upon directions given by the Client to HPPI and the Client’s acceptance of these terms and conditions on HPPI’s website. HPPI shall release the Report only upon receipt of payment.
- All work in progress will be billed monthly, with a final invoice issued on completion.
- Accounts not paid by the due date shall incur a late payment interest charge of 15% of the total amount owing for each calendar month the account is overdue, together with all debt collection costs.
- If a quotation is given for the Inspection/Report, any expenses incurred in addition to the quote, will be on the basis of cost to HPPI, plus 15%.
- If, after a subsequent quotation/estimate, any additional work is found to be required the Client will be contacted for its approval before any further work is completed.
Cancellation / Termination of Service
- The Client agrees to provide written notice of cancellation to HPPI at least 24 hours (one full working day) prior to the scheduled Inspection.
- A late cancellation fee equal to the full cost of the Inspection and Report shall be payable by the Client in the event of cancellation within 24 hours of the scheduled Inspection.
- There is no right to a refund if the Client is simply not satisfied with the contents of the Report.
- Where a refund has been provided in relation to the Report, the Report cannot be used by the Client or by any other entity.
- The Inspection and Report is intended only as a general guide to help the Client make its own evaluation of the overall condition of the property and is not intended to reflect the value of the premises, nor make any representation as to the advisability of the purchase.
- The Report is not a guarantee or warranty as to the state of the property. Nor does HPPI guarantee or warrant the work of any contractor or service, or the integrity of any product, appliance or fixture, natural or processed or any building system or cladding system applied.
- While all care and effort is taken to discover and record major faults or defects and significant maintenance in the property at the time of the Inspection, the Report is based on a visual above-ground non-invasive Inspection using a surface moisture meter. Due to the size, complexity and hidden nature of construction, irregularities and defects may not always be visible at the time of the Inspection.
- HPPI accepts no responsibility or liability for any omission in the Inspection or the Report related to defects or irregularities which are not reasonably visible at the time of the Inspection or which relates to the components of the building which are below ground.
- The Client accepts that HPPI will not detect some faults because the fault only occurs intermittently; part of the building has not been used for a while and the fault usually occurs after regular use (or detection of the fault would only occur after regular use); the type of weather that would normally reveal the fault is not prevailing at or around the time of the Inspection; the fault has been deliberately concealed; furnishings are obscuring the fault (see below); HPPI has been given incorrect information by the Client; the vendor (if any), the real estate consultant, or any other person; and/or the fault is/was not apparent on a visual inspection.
- HPPI has no responsibility for or liability of cost, loss or damage arising from:
- any errors or omissions from information, data or documents not prepared by HPPI, its employees, or other persons under the direct control of HPPI; or
- any outcomes and reports from any form of sampling or testing; or
- any act or omission, lack of performance, negligence or fraudulent act by the Client or property owner, any consultant, contractor, or supplier to the Client or property owner, or any of the Client’s or property owner’s employees or agents; or
- Any verbal advice provided by HPPI or any of its employees, unless subsequently confirmed in its written Report; or
- any damage to the property which is not directly the fault of HPPI.
- Any samples taken from any property for testing for products such as methamphetamine, are random samples and may not be representative of the presence or absence of the product being tested for in the property, or any other area where samples were not taken.
- HPPI has not undertaken a search of the title to the property, or a survey of the property and assumes no responsibility in connection with such matters. Unless otherwise stated it is assumed that all improvements lie within the title boundaries.
- Unless otherwise stated, HPPI has not and will not make any inquiries or undertake any inspections of any third party, territorial or other relevant authority records in respect of the property. The Report does not replace and is not intended to replace a council issued Land Information Memorandum (LIM report) or Council file search. HPPI recommends a LIM report is obtained and council file search conducted. If the Report contains any information obtained from the Council, then such information is only as accurate as the Council information on which such information is based. HPPI accepts no responsibility for any error or omission in such information as a result of inaccurate Council records.
- HPPI makes no representation that the property complies with the requirements of any legislation (including any act, regulations, by-laws, etc), including but not limited to, the Building Act 2004, Health and Safety at Work Act 2015, Fire Safety and Evacuation of Buildings Regulations 2006 or the Disabled Persons Community Welfare Act 1975. The Report is not a site or environmental report and HPPI makes no representation as to the existence of or absence of any “contaminated” (as that term is defined in the Resource Management Act 1991) or any “hazard” (as that term is defined in the Health and Safety at Work Act 2015) in the building or property.
Limitation of Liability
- Subject to any statutory provisions, if HPPI becomes liable to the Client, for any reason, for any loss, damage, harm or injury in any way connected with the Inspection and/or the Report, HPPI’s liability shall be limited to a sum not exceeding five times the cost of the Inspection and the Report.
- HPPI will not be liable to the Client for any consequential or special loss of whatever nature suffered by the Client and the Client indemnifies HPPI in respect of any claims concerning any such loss.
- HPPI accepts no liability in relation to the Inspection or the Report to any other person than the Client to whom this Report is addressed.
- The contents of the Report, or any work prepared by HPPI are confidential and have been prepared solely for the Client and shall not be relied upon by any third parties without HPPI’s consent.
- The Parties agree that both parties shall keep all commercially sensitive information obtained by either party during the preparation of the Report confidential.
- Where the content of any Report is relied upon for industry research or evaluation purposes, such research or evaluation shall not include any data that may allow for the identification of any property or any personal information included in the Report in any way.
- Nothing within this agreement shall be considered as limiting the ability of HPPI to offer or to provide the same or similar Report (or other services) to any other person or organisation.
Publication and Use
- Neither the whole or any part of this Report or any other report (whether verbal, video or written) or any reference to this Report or any such other report may be included in any published document, circular or statement, whether hardcopy or electronic; transferred to any persons other than the Client; or distributed or sold, in each case without first obtaining the written approval of HPPI.
- The Report is not to be used in any litigation except with the prior written approval of HPPI.
Dispute Resolution and Governing Law
- Should any dispute arise as a result of the Inspection or Report, it must be submitted to HPPI in writing immediately.
- The Parties shall attempt in good faith to settle any disputes by agreement in the first instance then disputes shall be referred to mediation and thereafter any unresolved disputes shall be referred to the courts of New Zealand.
- The Client agrees that in the event of a dispute, the contents of the Report may not be used to satisfy any terms of a sale and purchase agreement until the disagreement/dispute has been resolved.
- The Client agrees that if, after raising a dispute, the Client uses the Inspection or Report to make an unconditional offer or confirm a sale and purchase agreement, the Client shall be deemed to have waived all rights to continue the dispute, and/or raise any future dispute or claim against HPPI.
- In the event of a claim/dispute regarding damage to a property, the Client will allow HPPI to investigate the claim prior to any repairs being undertaken or completed. The Client agrees that if it does not allow HPPI to investigate the claim before repairs are carried out the Client shall be deemed to have waived its rights to continue with and/or make any future claim against HPPI.
- In the event of any dispute, the Client agrees not to disturb, repair, or attempt to repair anything that may constitute evidence relating to the dispute, except in the case of an emergency.
- The Parties agree that the laws of New Zealand shall govern the rights and obligations of both parties to these terms and conditions.
- Nothing contained in these terms and conditions shall be deemed to exclude or restrict any rights or remedies that the Client may have under the Fair Trading Act 1986 or the Consumer Guarantees Act 1993 or at law. If any provision of these terms and conditions is illegal, invalid or unenforceable, such provision shall be deemed to be excluded or read down to the extent necessary to make the provision legal, valid or enforceable, and the remaining provisions shall not be affected.