Property Investment
2 min read
Author: Andrew Nicol
Managing Director, 20+ Years' Experience Investing In Property, Author & Host
Last week, an investor came to me in a jam.
He bought a new property. Now the shower is leaking. The developer installed it the wrong way.
Now it’s slowly damaging the bathroom.
The developer has gone broke. They won’t fix it.
Insurance won’t pay out.
They had a MasterBuild guarantee. But they won’t pay out either!
What’s a property investor to do?
My advice? Take it to the Disputes Tribunal.
The Disputes Tribunal is the forgotten-gem of the Kiwi legal system.
It lets everyday people hold each other to account.
It a bit like real-life Judge Judy. But it’s run by referees (not judges).
So if a dodgy tradie did you wrong, someone didn’t pay a bill, or a contract goes wrong.
You can win up to $30,000 – And there are no lawyers (you are your own lawyer).
So fees are pretty low. And the whole thing is typically done and dusted within a few weeks.
If you win, the tribunal can order the other party to:
If not, well … you’ve lost a couple hundred bucks taking the claim.
A couple hired a company to build a $39,000 sleepout on their property.
But things went pear-shaped. The work wasn’t finished properly. So, they took the builder to the Disputes Tribunal.
They plead their case. And the Tribunal decided that the builder to refund them $5,000. That was to cover the parts of the job that weren’t up to standard.
But it’s not just builders and contractors you can take to the Tribunal.
They recently told a cat breeder to refund a buyer $1,000 (yes, you read that right).
It turns out the pedigree cat she got sold was seriously sick. It had to be put down soon after buying 🙁.
Since the buyer couldn’t return the cat … you know why … the Tribunal ordered the breeder to refund the cost of the cat and the vet bills.
So how do you take someone to the Disputes Tribunal?
#1: Head to the Disputes Tribunal website
First head to the Disputes Tribunal website. Hit the “apply online” button.
You’ll fill out a few short forms, explaining:
#2: Pay the fee
There is a cost and it depends on how much money you want the other person to pay you. It’s:
#3: Wait for your hearing date
You’ll most likely hear back within 10 working days with your hearing date.
It’ll either be a video call or in person (often at the local district court).
#4: Present your case
Make sure you’re prepared (channel your inner lawyer).
Most importantly you need evidence.
That means:
Anything that proves your side of the story. Witnesses are allowed too.
Remember to stay calm, and present the facts. You’ll have a better chance at winning.
#5: Get a decision
The referee makes a legally binding decision.
If they order the other person to pay you money (and they don’t), you can take them to court.
It is 100% worth it.
Over 13,000 claims go through the tribunal each year.
But many people don’t realise this option exists.
So if you’re like the investor that’s unhappy with MasterBuild … this can be a good solution for you.
It’s quick, cheap, and powerful.
And if someone hasn’t held up their end of the bargain, it might just get you that $30k you’re owed.
Managing Director, 20+ Years' Experience Investing In Property, Author & Host
Andrew Nicol, Managing Director at Opes Partners, is a seasoned financial adviser and property investment expert with 20+ years of experience. With 40 investment properties, he hosts the Property Academy Podcast, co-authored 'Wealth Plan' with Ed Mcknight, and has helped 1,894 Kiwis achieve financial security through property investment.
