Plan to flag leaky houses alarms owners

Some leaky building victims are upset about this week's Government announcement that weathertight claims must be flagged on all property titles, fearing their houses will be worthless.

They say the change means they are permanently trapped in their houses because even if the leaks are fixed they will be unsaleable. Buyers will reject the property once they see the title showing a weathertightness claim.

On Tuesday, Building Issues Minister Clayton Cosgrove unveiled a suite of changes to the Weathertight Homes Resolution Service, including making it mandatory for territorial authorities to post warnings on the Land Information Memorandum (LIM).

This would let buyers know if a house had been subject to a claim.

However, it would not be mandatory for action pending in the High Court to be posted on the LIM, Mr Cosgrove said.

But some victims fear any warnings on the LIM will further stigmatise their homes.

"I will probably have to live here until I die, as who in their right mind would buy this with a note on the LIM marking it as a leaky home?" one desperate owner wrote to the Leaky Homes Action Group.

Auckland lawyer Paul Grimshaw backed the concern.

"The LIMs with council will now note if the property is subject to a WHRS claim. Fine, but if the property is then fixed, the note needs to come off the LIM otherwise the property is forever tarnished with the stigma of being a leaky building."

Homeowners who objected to the change said victims might avoid the state service because claims would go on their titles.

"At present I have only had an assessment done and have not progressed any further, as the problems we have aren't that bad and are more related to poor workmanship," said the victim. "I am of a mind to withdraw my claim as I do not want a permanent note on my LIM marking this house as a leaker."

But the action group's committee, which includes Auckland pilot and successful claimant John Gray, said victims had everything to gain from the Government's move.

"The impetus behind this is essentially that of ensuring that the houses are repaired and repaired properly, so you should not fear having that information on the LIM," the committee told the victim. "If leaky homes are properly remedied and subject to building consent and have a final code compliance certificate, then it is a matter of public record that the work has been done and done to the appropriate standard."

The only ones who should fear the change were the unscrupulous who, without any warning on the LIM, quickly pulled out of a claim to ensure it was not noted on the title, tarted up their places with quick-fix measures and paint and sold.

To leave homeowners to voluntarily disclose problems was not an option.

Another victim said the Government's changes were just "tiny steps in an appalling situation".

The victim was disconcerted that the action group had endorsed the Government's moves and wanted the pressure kept on to resolve problems.

But the committee said the Government was taking a series of steps to change the situation and the creation of the Weathertight Homes Tribunal under the Department of Courts was an excellent move.