Learning outcomes

1 Discuss laws relating to resource management and buildings in relation to
real estate practice.

Instructions

Complete and submit your assessment according to the Open Polytechnic’s Assessments webpage.

This includes information on academic integrity, formatting, word limits and referencing.

• Include your name, student number and the assessment number.
• Number your pages

Scenario

You work in a real estate agency in your local area. Your office is working with a real estate developer who has resource consent to develop a greenfield subdivision called Rimu Ridge (a greenfield subdivision is a new residential area created on an area of previously undeveloped or vacant land, typically involving infrastructure like roads, utilities, parks, schools, and other amenities to support the new community). The Rimu Ridge subdivision will have a mixture of housing types. There will be a small retail and commercial centre.

For greenfield subdivisions, developers must do the following:

• get consent to build,
• carry out an environmental impact assessment, called an Assessment of Environmental Effects (AEE),
• hold public discussions and participation, because if there are any breaches of rules or regulations, local councils have the authority to impose fines.

Task 1: Resource Management Act 1991

You have a customer, Lisa, who has recently emigrated to Aotearoa New Zealand and is hoping to buy a home in Rimu Ridge. She explains to you that one of the main reasons she chose to move her family here was because of the ‘clean and green’ image of this country.

You explain to Lisa that one of the key factors helping to keep Aotearoa New Zealand ‘clean and green’ is the Resource Management Act 1991

Using your own words, explain to Lisa the main principles and objectives of the Resource Management Act 1991 and how it applies to the Rimu Ridge subdivision. Structure your answer as detailed below.

a. Briefly describe how the Resource Management Act 1991 applies to greenfield subdivisions.

b. For each principle of the Resource Management Act 1991, explain to Lisa three factors that landowners need to consider. Give an example for each and refer to the relevant sections of the Act. The principles are:

i. Matters of National Importance

ii. Other Matters

iii. Te Tiriti o Waitangi/the Treaty of Waitangi principles

Task 2: District Plans

You are a real estate salesperson in the Lower Hutt District, offering homes and sections for sale in the area. Several potential customers have come to you with questions about building or improving homes that you are marketing. They want to know whether specific building styles or improvements are allowed under the Lower Hutt District Plan.

To answer their questions, refer to Chapter 4 (see below) of the latest version of the City of Lower Hutt District Plan to find out whether the following activities would be permitted.

a. Building a house with a maximum height of 7.5 m and a net site coverage of 33% in the Medium Density Residential Activity Area.

b. Building an accessory building with a floor area of 48 m2 that would require an established Rimu tree located within 3m of the new accessory building to be cut down in the Medium Density Residential Activity Area.

c. Building a house with a maximum height of 8.25 m with a front yard setback of 4 m and side and rear yards with setbacks of 1.8 m in the Medium Density Residential Activity Area.

Next, provide written advice to your potential customers, including reasons for your answers. Your answers must include the relevant rule numbers, sections and subsections from the City of Lower Hutt District Plan, including advice on whether these activities would be permitted.

When you write your answer, be aware that district plans change constantly, all over the country. In August 2023 the Hutt City Council voted unanimously for government-mandated changesto allow higher and denser housing, particularly around transport hubs.

An independent panel delivered recommended decisions to Hutt City Council for Plan Change 56, which enablesintensification in residential and commercial areas

Task 3: Building Law

As a real estate licensee, you must be familiar with: •

• the Building Act 2004
• building regulations under section 402 of the Act
• the Building Code under section 400 of the Act.

Use your knowledge of the above to help these clients.

1. Vincent and Tina Copeland are clients who want to buy a property in Auckland. They have found a house they like in Blockhouse Bay, which is being sold by Angela and Nikau Jackson, but they have concerns about some building work done on the property.

You arrive at the property and begin your inspection. You inspect the property and find evidence of significant alterations. You identify two areas where building work may have taken place: an extension to the living room and a converted garage.

As you continue your evaluation, you find that the building work appears to have been carried out to a high standard, with no obvious safety concerns.

You talk to Angela and Nikau and they tell you the house was built in 1991. You then ask if they have building consents and Code Compliance Certificates (CCC) for the house, the living room extension and the garage conversion. Angela says she isn’t sure but will email you with the information and copies of the consents and certificates if they have them.

The following day you receive an email from Angela telling you that they have building consents for the house and the living room extension completed in 2003 and garage conversion done in 2005, but don’t have any CCCs. In fact, she says neither her or Nikau know what CCCs are.

a. Write an email to Angela explaining:

i. what Code Compliance Certificates are

ii. if any CCCs are needed for their house and the improvements and why

iii. why the lack of CCCs presents a problem for you as a real estate licensee

iv. what options they have in the absence of a CCC and the steps they could now take, with a view to getting a possible offer from the Copelands.

b. Write a second email to Vincent and Tina explaining why a lack of Code Compliance Certificates is a problem for them as prospective purchasers of the Blockhouse Bay property.

2. Andrew and Maia Barrett come to you about buying a section in a subdivision. They plan to build a house starting in 14 months time. They have a plan but are sure they will change it. They want to know if they should apply for a building consent now

a. Write an email to Andrew and Maia explaining:

i. how long the consent process will take

ii. if the consent will still be valid when they plan to start building

iii. what Andrew and Maia will have to do to change their plan after the consent is issued

iv. what penalty (or penalties) may be applied for any work carried out without a building consent.

Task 4: Building Styles

The purpose of this task is to demonstrate your ability to evaluate a property, identify its key features and assess its condition. You will also be assessed on your ability to present your findings in a clear and concise manner.

1. Evaluate the home where you are currently living and report your findings, including notes and photographs of the property’s key features.

a. Conduct a thorough evaluation of the property, paying particular attention to the following features:

• exterior
• interior
• joinery
• kitchen
• living area.

Also think about factors such as:

• energy efficiency
• weathertightness.

2. Evaluate a twenty-first century (2000s–current) home at 18 Winstone House Road, Paerata Rise. You can see the house in a short video by Kanda Homes (2021)1 and in the photos in Appendix 1.

a. Conduct a thorough evaluation of the property, paying particular attention to the following features:

•  exterior
• interior
• joinery
• kitchen
• living area.

Also think about factors such as:

• energy efficiency
• weathertightness.

b. Choose five photographs or capture screenshots of the property to represent the key features listed above. Insert your photographs alongside the Property Evaluation table provided in Appendix 1.

c. Complete the Property Evaluation table (Appendix 1) to report your evaluation of the condition and presentation of the property.