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University University Of Otago (UO)
Subject RES421: Law For Real Estate Licensees

Learning outcomes

You will be assessed on the following learning outcomes:

1. Explain key points of the law relating to resource management.

2. Explain key implications of the Building Act as they apply to licensees including compliance requirements and non-compliance implications.

3. Describe New Zealand housing styles and structures in accordance with industry requirements and identify and describe different types and conditions of internal and external building elements.

Task 1: Resource Management Act 1991

You have a customer, Cindy, who has recently emigrated to New Zealand and is hoping to buy a home in Mataī Valley. She explains to you that one of the main reasons she chose to move her family to New Zealand was because of the ‘clean and green image of this country.
‘It’s very different from where I’ve come from. There everything is crowded and there’s hardly any sign of the natural world left because it’s all concrete and steel! What’s the secret of this country?’ Cindy asks.

Using your own words, explain to Cindy the main principles and objectives of the Resource Management Act 1991. To do this, answer these questions:

(a) What is the purpose of the Act?

(b) What are the three main principles of the Act? For each principle, explain to Cindy three things landowners need to consider, giving an example for each. Include reference to the sections of the Act.

(c) The Act covers which six elements of the environment? For each, give two examples of relevant restrictions, controls, or obligations that are applied.

Task 2: District plans

A council officer visits your office to give a talk about how council planning affects the local area. During the talk, she discusses some of the inquiries the council has received about the new subdivision. These include:

(a) A house with a maximum height of 7.5 meters, and net site coverage of 33% in the Hill Residential Activity Area.

(b) A service station in the Central Commercial Activity Area.

(c) A kōhanga reo (Māori language preschool) for up to 10 children in the General Residential Activity Area.

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(d) A boarding kennel on a 2-hectare site in the Rural Residential Activity Area.

(e) A 15-meter-high office complex in the General Business Activity Area.

Refer to the extracts from the City of Lower Hutt District Plan provided to identify whether all facets of these activities would be allowed. Give reasons for your answers, with the relevant rule number(s) from the District Plan.

Task 3: Building law

Cory and Krystal Key are selling their first home, which they purchased 17 years ago. You have recently listed the property. As their family grew they needed more space, so 5 years ago they had added an extension of two bedrooms, a second bathroom, and a second lounge.

Two weeks ago you introduced Balvinder and Nalini Singh to the property, and they are now very keen to purchase it. As part of their research, they visited the local council. The council advised that the extension doesn’t have a code compliance certificate.

When you asked Cory and Krystal about this, Cory replied that he knew they’d got a building consent, and thought it was the same thing.

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(a) Write a brief email to Cory. In it, explain the main differences between a building consent and a code compliance certificate.

(b) Write a brief email to Cory and Krystal and explain:

(i) why the lack of a code compliance certificate presents a problem for you and prospective customers, and

(ii) what options they have in its absence and the steps they could now take, with a view to getting a possible offer from Balvinder and Nalini.

Nalini asks if you can advise her brother, Nilesh. He is interested in building a home, so you have shown him several sections in a new subdivision. During one site visit he asks you if you could give him an overview of the building consent process, and the approximate timeframe involved.

(c) Draft an email to Nelesh explaining the building consent process from application to final completion of the work. Include details of each of the following:

(i) all information needed for the application

(ii) how long a building consent lasts once it has been issued

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

Task 4: Building styles

Visit two homes, each representing a different era from the list below:

• Villa (the 1880s–1910s).

• Bungalow (the 1910s–1930s).

• Art deco (the 1930s–1940s).

• Statehouse (the 1940s–1960s).

• Seventies house (1970s).

• Mediterranean (the 1980s–current).

• Twenty-first century (the 2000s–current).

Download and complete the building styles tables from the Assessment area. Add photographs and write field notes to compare and contrast the features of the two properties you have chosen. Include five photographs of each property, representing key elements, such as the exterior, interior, joinery, kitchen, and living area.

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