The ABCs of TC3

When it comes to selling properties with a TC3 land zoning category it is important to go about it in a well informed and methodical way. The services of a real estate salesperson who has the experience, knowledge and correct procedures in place is invaluable in this process. Seeking legal advice is also good practice and is recommended. I have compiled a check list to help get you get started and do feel free to contact me for more in-depth assistance and guidance.

Hopefully the following will shed some light on best practice for both seller and buyer:

1. Know your objectives
   Have clear goals. If your property is damaged – are you aware of the degree of that damage? What time frames are you working towards?
2. Current market value
   Has the value of your property increased or decreased post-earthquakes?
3. Assessments
   Be sure to have your property assessed, e.g. insurance and EQC Scope of Works (SOW), geotechnical land assessments etc.
4. Land damage
   Make a list of the land damage. Did the site liquefy? Are there any undulations/sink holes etc? Buyers like to know this info.
   
   
5. Street Damage
   An overview of the damage or lack thereof it is helpful to give confidence to buyers.
   
   
6. Claims
   Compile a file of all the claims you have made on the property including land claims and if possible an update of their status. Include a list of all the claim numbers.
   
   
7. Dwelling damage
   Does the property have less than $100,000 plus GST damage (under EQC cap) or has been “over capped” by EQC and referred to your insurer?
   
   
8. Repair or rebuild?
   This is vital information as the ramifications to the purchaser are critical – an insurer may rebuild a house for the policy holder but may not for a new post quake owner.
   
   
9. Selling “as is”
   This also needs careful discussion and professional advice as it is often a viable option. Generally this is done on a non-insured basis. The Griff team specializes in selling these types of properties.
   
   
10. Cash settling
    This often but not always ties in with the above and it is a case of getting the facts in front of you and making the best decision based on what is in your best interests both financially and timing wise.
    
    
11. Engineer’s report
    In my opinion this is again vital. This is your home’s post quake Warrant of Fitness and best practice for all involved. I believe it is one of the best marketing tools as it provides the base line for what is being represented.
    
    
12. Deed of Assignment
    Any benefit you are passing over from both EQC and your insurer needs to be assigned. This is initially instigated by a contractual clause approved by your solicitor.
    
    
13. Insurance transfer
    Before selling call your insurance company and check that they are happy to “roll over” the same policy conditions for a new purchaser.
14. Further terms of sale
    Again it is best practice for us to prepare a contract on your behalf for the sale of your property and have your solicitor approve it prior to entering into a contract.
    
    
15. Seek legal advice
    Remember your solicitor is ultimately the one who should check that all the legalities have been attended to, and as above, it is best to take such advice prior to proceeding.
    
    
16. TC3 properties are sellable
    Our in-house stats indicate that between 32 – 34% of our sales in the Parklands office are on TC3 land. Take heart, the bottom line is there is a way forward and we are the team that has the skills and procedures in place to make that happen for you.

Here’s to many more sales on all land categories – bring on spring and bring on the sales!