#4 – Refusing to fix defects they're legally on the hook for
When you buy a New Build property in New Zealand, the Building Act (2004) gives you two protections:
- A 12-month defect repair period. The builder must fix any defects you notify them about in the first year.
- A 10-year structural warranty. If something goes wrong with the structural elements of the building within 10 years, the builder must fix it.
Most developers honour these obligations. But not all.
Recently, some investors contacted me about a broken septic tank system in their development. The cost to fix it was huge. And the investors didn’t want to shell out thousands of dollars when the septic tank was basically still new.
Initially, the developer refused to cover the cost.
The owners banded together and obtained an independent engineering report. This confirmed the system wasn’t compliant to begin with.
Eventually, the issue was resolved. But the developer made the owners sign a confidentiality agreement. This banned them from talking about it.
Think about that – the developer screwed up, got caught, and then made the owners promise not to tell anyone.
It’s a reminder that while the legal protections exist, there’s always someone trying to dodge the law.
Thankfully, the Disputes Tribunal limit increased from $30,000 to $60,000 in January 2026.
That means you can more easily take a developer through the justice system when they do something wrong.
What you can do to protect yourself: Know your rights, and don’t be afraid to go to the Disputes Tribunal.
