Tag Archives: EQC

EQC announces new policy for on-sold over-cap properties

At EQC.govt.nz:

On 15 August 2019 the Government announced a policy that allows owners of on-sold over-cap properties in Canterbury to apply for an ex gratia Government payment to have their homes repaired.

If you’ve bought a home in Canterbury and discovered that it is damaged over the EQC cap, you may be eligible for an ex gratia payment to cover the cost of repair.

Under the policy, you will have twelve months (no later than 14 August 2020) to register your interest for the ex gratia payment. After that time, the policy will not be available.

If you qualify you may be able to receive an ex gratia payment equal to the agreed cost of repair.

To qualify for the support package, you’ll need to meet the following criteria:

  1. You have purchased a property in Canterbury after 4 September 2010 (the date of the first 7.1 magnitude Canterbury earthquake) and on or before the announcement of this support package on 15 August 2019; and
  1. Before selling the property the previous owner settled a claim with EQC on an under-cap basis; and EQC cover depends on how the natural disaster damage occurred.
  1. Post-sale you have discovered the property has incomplete or insufficient repairs either as a result of defective repair or through damage which had not been properly assessed; and
  1. The cost of the repair, together with the amounts previously paid by EQC for the property is more than the EQC cap ($100,000 +GST); and
  1. You are unable to access private insurance to cover the cost of repairs.

This is will be a welcome resolution to many homeowners who found themselves in a seemingly impossible situation of having no recourse to the original insurer of their property due to believing that all necessary earthquake repair work had been completed. However, the fact that this will require agreement with EQC as to the extent and cost of necessary repairs will be cold comfort for some!

Some Good News for TC3

The views of the Avon will remain sought-after despite TC3 zoning.
Photo: Kirk Hargreaves

It was heartening to see this write up in last The Press last Thursday. It predicts increased demand for TC3 land in the future. It makes a good read and well worthwhile checking out:

River-front properties that were close to being written off after the earthquakes could become the most sought-after in Christchurch.

In time, technical category 3 land around the city will bounce back to become desirable once again, Earthquake Commission chief executive Ian Simpson says.

“We’ve all got really short memories so I think in 10 years time, everyone’s going to be clamouring for want of a waterfront view property that’s out there called TC3,” he said at a meeting of business leaders at the Canterbury Club yesterday.

TC3 properties sit on land deemed among the most risky to build on that has not been red-zoned. The TC3 label has been at the forefront of many protests.

Disgruntled TC3 residents have rallied against repair delays, a lack of answers and miscommunication over their land.

But Simpson believed people would forget their earthquake-based concerns and said the disputed TC3 label would not tarnish the properties permanently.

I believe he is right and once the rebuild and repair strategies get underway, confidence will return for TC3 land. So come on insurers, the quicker you get things underway, the quicker the city will turn back to normality!

Approximately 70 per cent of our sales this month at Harcourts Gold Parklands alone have been properties zoned TC3.

Sales currently are brisk with a very positive vibe out there in the marketplace, people are currently keen to secure property this side of Christmas – bring it on I say!

EQC Act Poised for Review

I was pleased to read in Saturday’s Press that EQC chairman Michael Wintringham is sighting changes to the current EQC structure. This is definitely music to my ears, and I’m sure it is for you as well. However the crying shame is that we have all had to be the guinea pigs to prove that the current structure is not robust enough to effectively handle such a mammoth event that has taken us all by surprise.

Wintringham says that because of the huge scale of the earthquakes disaster and the costs to the Government and private insurers “there is an incentive for insurers to reduce their own liabilities by shifting costs to the Crown or to other parties”.

Wintringham says the EQC Act needs review. At present the Government is considering the terms of reference of the review.

The Canterbury earthquakes had provided “a reality check” on the workability of the 20-year-old law.

Well I guess hindsight is always a great thing – one always knows how to do it all after the event has transpired. Let’s hope the lessons have been learned and we are all better prepared for future “events” before they arrive.

On the real estate front, having had two properties sell under the hammer last week, it is my perception that both the buying and selling public are relishing the opportunity to transact real estate in such a transparent and professional forum.

If you are off to the races or simply enjoying a bit of family time out over Canterbury’s anniversary week, be sure to enjoy. It’s looking like the traditional good ‘show week’ weather is on its way too.