Laws offer little help for problem of rotten timber

By KEVIN TAYLOR

If rot attacks your new home's timber frame and you bought it from an agent - do not look to the Consumer Guarantees Act for help.

The purchases of new homes from a real estate agent or at auction were specifically excluded from the 1993 legislation.

The Weekend Herald on Saturday revealed the industry's alarm at a growing number of timber frames rotting in new houses, after untreated kiln-dried timber was used and new "chilly-bin" claddings leaked.

If a new home owner faces a rotting problem, the act covers them only if they contracted directly with a builder.

The Ministry of Consumer Affairs, which administers the act, said there had always been a historic distinction between portable goods and real estate.

Spokeswoman Pamela Rogers did not know why there was a distinction, but she said the majority of houses were sold privately and the act and Fair Trading Act did not cover private individuals.

"The Consumer Guarantees Act is about goods," she said.

Consumers Institute chief executive David Russell said people who wanted to hire a builder should always have a good, written contract in place.

Mr Russell said new uncontracted homes were not covered because other mechanisms were available - including the Building Act, which provides guarantees for materials.

But the Building Industry Authority says the Building Act is also silent on consumer guarantees. Authority principal legal adviser Brian Cashin said the 1991 act sets a 10-year maximum statute of limitation on a builder's responsibilities.

"You cannot go to court with any claim arising out of construction of a building more than 10 years after the act or omission," Mr Cashin said.

"That's the real problem when you put up something that's not going to last 50 years - 10 years later you are home free."

Mr Cashin did not know why the Consumer Guarantees Act excluded uncontracted homes.

But the Building Code did require homes to be properly constructed, and for their elements to last a certain period. In the case of a structure - like a wood frame - the period is at least 50 years.

* Got a problem with rot in your new house? E-mail the Herald with your story. Contact kevin_taylor@nzherald.co.nz