Standard Reports

Scroll through the terms and conditions applicable to inspection reports prepared by House Pre-Purchase Inspections Ltd, from here on referred to as HPPI, below.

These terms and conditions apply to the inspection undertaken by House Pre-Purchase Inspections Ltd. (HPPI) and the Inspection Report to which these terms and conditions apply.

As part of House Pre-Purchase Inspections (HPPI’S) compliance with New Zealand Property Inspection Standards NZS 4306:2005 (the Standards) we are required to outline:

  • The scope of our inspection and report.
  • Any limitations to our inspection and report; and
  • Our terms of trade
  • Your name
  • Our Inspection Company Name
  • The Date the report is due by
  • The Scope of report
  • Any special-purpose property inspection items
  • Our Fee
  • Any Limitations and conditions
  • Our Professional liability covers.

This must be accepted by you/the client, and this acceptance must be sent to HPPI by email before any inspection can be carried out.

  1. TERMS OF TRADE

  2. In consideration for us providing you with the Inspection and report, you agree:
  3. Once our terms have been accepted via our web site Payment is required. The report will only be released once paid. Accounts not paid by the due date shall incur a late payment interest charge of 15% of the total amount owing for each calendar month the account is overdue, together with all debt collection costs.
  4. All work in progress will be billed monthly, with a final invoice issued on completion.
  5. If a quotation is given for the Inspection/report, any expenses incurred in addition to the quote, will be on the basis of cost to us, plus 15%.
  6. If, after a subsequent quotation/estimate, any additional work is found to be required you will be contacted for your approval before any further work is completed.
  7. We have no responsibility or liability for any cost, loss or damage arising from:
  8. any errors or omissions from information, data or documents not prepared by us, our employees, or other persons under the direct control of us.
  9. any outcomes and reports from any form of sampling or testing.
  10. any act or omission, lack of performance, negligent or fraudulent act by you.
  11. any act or omission, lack of performance, negligence or fraud by any consultant, contractor, or supplier to you, or any of your employees or agents.
  12. Any samples taken from any property for testing for products such as methamphetamine or asbestos, are random samples and may not be representative of the presence or absence of the product being tested for in the property, or any other area where samples were not taken.
  13. Any test samples, results, and reports produced are neither a warranty or guarantee of the presence or absence of the product being tested in the property.
  14. That all commercially sensitive information obtained by either party during the preparation of the report shall remain confidential.
  15. The contents of the report, or any other work prepared by us is confidential and has been prepared solely for you and shall not be relied upon by any third parties. We accept no responsibility for anything done or not done by any third party in reliance, whether wholly or partially, on any of the contents of the report.
  16. Where the content of any report is relied upon for industry research or evaluation purposes, such research or evaluation shall not include any data that may allow for the identification of any property or any personal information included in the report in any way.
  17. You shall pay all costs and expenses (including legal costs on a solicitor/Client basis) resulting from any breach of these terms of trade by you or the enforcement by us of these terms of trade.
  18. The parties agree that the Laws of New Zealand govern these terms and conditions and proceedings taken by the other party shall be heard in the District or High Court at Auckland, New Zealand, regardless of the location of your place of business/residence.
  19. REFUND POLICY

  20. Once the client has given direction for HPPI to undertake an inspection and/or report, and they have accepted our terms and conditions, payment is required. If the purchaser has paid for the report and he or she has difficultly viewing the report on their device other arrangements can be made by contacting HPPI. The report can be emailed or posted if required. The client not being happy with the contents of the report is not grounds for a refund. We will meet our Obligations under the Consumer Guarantees Act. Note if a refund is given the said report cannot be used by the client or any other entity.
  21. CANCELLATION FEE

  22. If you cancel the inspection you agree, in consideration for us arranging a time for the inspection, to pay us a cancellation fee equal to the full cost of the inspection and report, provided however that if we have received twenty-four hours’ (one full working day), written notice of cancellation no fee will be payable.

THE SCOPE OF HPPI INSPECTIONS

This has been undertaken in accordance with NZS4306:2005 and House Pre-purchase Inspections Terms and Conditions.

  1. Inspection and Report prepared in accordance with the Standards.

  2. For the purpose of pre-sale or pre-purchase inspections, the inspection process will be carried out in accordance with the Standards. You agree to be bound by the Standards.
  3. A copy of the Standards is available at our office for your inspection, or alternatively you may contact Standards New Zealand and purchase a copy.
  4. We will have a qualified person with a relevant qualification and building inspection experience carry out the inspection in accordance with the Standards (“the Inspection”).
  5. We will certify that the Inspection has been carried in accordance with the Standards and the Inspector meets the competences of that standard.
  6. We will consider Weather Tightness, regardless of age, however it will not be measured against appendix A of the Standards or to E2/AS1 of the Building Code, Matrix and Evaluation, as this would be subject to a specialist report.
  7. We will undertake moisture testing and will advise if we have detected any raised moisture readings. We will show their position but may not show images of the readings or advise of the actual moisture reading. Non-invasive moisture meters have limitations with trying to determine high or low range readings, and this should be considered qualitative report only. You must consider that all raised moisture readings will require further invasive investigations.
  1. INSPECTION AND REPORT LIMITATION AND SCOPE

  2. We use our experience in the New Zealand residential construction market to provide a “visual and non-invasive” inspection reporting on: The properties attributes, Significant defects and maintenance visible at the time of the inspection (when considered against homes of a similar age and construction type) & Weathertightness risk.
  3. The report expresses the opinions of the inspector, based on his or her visual impressions of the condition that existed on the date of the inspection only.
  4. The Inspection and report are not intended to be technically exhaustive, or to imply that every component was inspected, or every possible defect was discovered.
  5. We will consider Weather Tightness, regardless of age, however it will not be measured against appendix A of the Standards or to E2/AS1 of the Building Code, Matrix and Evaluation, as this would be subject to a specialist report.
  6. The report should be seen as a reasonable attempt to identify any Significant Fault or Defect visible at the time of the visual Inspection rather than an all-encompassing report dealing with the home from every aspect.
  7. While all care and effort is taken to discover and record major defects and significant maintenance in the building at the time of the inspection. Inspection Reports are based on a visual above-ground non-invasive inspection using a surface moisture meter. Due to the size, complexity and hidden nature of construction, irregularities and defects may not always be visible at the time of the inspection.
  8. The Inspection and report is intended only as a general guide to help you make up your own evaluation of the overall condition of the home, and is not intended to reflect the value of the premises, nor make any representation as to the advisability of the purchase.
  9. HPPI accepts no responsibility or liability for any omission in the inspection or the Inspection Report related to defects or irregularities which are not reasonably visible at the time of inspection or which relates to the components of the building which are below ground.
  10. The Client accepts that the visual inspection is limited to those areas of the building which are reasonably and safely accessible at the time of inspection. HPPI has not opened, uncovered, or dismantled any part of the building during inspection, or undertaken any internal inspection of concealed areas of the building.
  11. The inspection did not include any of the areas as or components which were concealed or closed in behind finished surfaces (such as plumbing, drainage, heating, framing, ventilation, insulation or wiring) or which require the moving of anything which impeded access or limited visibility (such as floor coverings, furniture, appliances, personal property, vehicles, vegetation, debris, or soil).
  12. HPPI did not move occupier-owned items for the purpose of undertaking the inspection.
  13. HPPI is not responsible and the inspection will not cover any part of the building or property to which access is not reasonably and safely available to carry out a visual inspection. This may include roofs, sub floor areas and ceiling cavities. High, constricted, or dangerous areas cannot be inspected if in conflict with Occupational Safety and Health Regulations.
  14. Inspections of the systems at the home are outside of the scope of a HPPI inspection report. The inspector will however conduct a cursory inspection of the hot water system, the plumbing and electrical system (including testing the accessible power points and light in each room). You should note that this will be the opinion of the inspector, who is not a qualified plumber, electrician, or gas fitter. You should note that our inspector did not inspect the air conditioning system, dishwashers, stoves, hobs, heating system, aerials, swimming pools or spas, footings, concealed damp proof membraines, concealed drainage, plumbing pipes, electrical cabling or fixtures and fittings, the operation of Chimneys or fire places, floor coverings,
  15. We will not insect or report on telecommunications or aerials and antennae
  16. It is not our policy to give oral advice; we will provide a written report. If you do require us to give you oral/ verbal advice we shall not be held liable for that advice.
  17. Asbestos based products can be difficult to determine unless the material is tested. HPPI may not identify all possible materials with our visual inspection. An asbestos survey is the only way to identify ‘all’ Asbestos products- this is a special purpose inspection report not covered by a HPPI pre-purchase inspection.
  18. HPPI will take care to advise of possible concerns and advise if, in our experience we expect a material to contain Asbestos but cannot be held liable in the event a product is missed. The client must at their own expense arrange for an Asbestos survey to fully detail materials that contain Asbestos.
  19. As a product, Asbestos performs well and if it is in good condition the only issue to consider is if you are planning to undertake any upgrade or renovation that may affect the material.
  20. If the material is damaged and not performing or is used in an internal plaster system, removal may be required, and costs should be considered, these cost will vary depending on the amount to be removed and the location and access and will need to be quoted by a third party or Asbestos removal contractor.
  21. If you are planning renovation or upgrade an Asbestos survey should be undertaken
  22. The Client accepts that HPPI will not detect some faults because the fault only occurs intermittently; part of the building has not been used for a while and the fault usually occurs after regular use (or detection of the fault would only occur after regular use); the type of weather that would normally reveal the fault is not prevailing at or around the time of the inspection; the fault has been deliberately concealed; furnishings are obscuring the fault (see below); HPPI has been given incorrect information by the Client; the vendor (if any), the real estate consultant, or any other person; and/or the fault is/was not apparent on a visual inspection
  23. Product names, materials and systems are not generalized to help in reading and understanding the Inspection Report. All materials and systems are assumed to be standard typical construction or materials when not able to be fully investigated (whether for the reasons stated above or far any other reason).
  24. Unless otherwise stated the inspection did not access compliance with the New Zealand Building Code’s, including the code’s weather-tightness requirement, or structural aspects.
  25. Compliance with Statute Regulations, Territorial or Other Relevant Authorities
  26. Unless otherwise stated, HPPI has not and will not make any inquiries or undertake any inspections of any third party, territorial or other relevant authority records in respect of the building. The Inspection Report does not replace and is not intended to replace a council issued Land Information Memorandum or Council file search. HPPI recommends a Land Information Memorandum report is obtained and council file search conducted. If the Inspection Report contains any information obtained from the Council, then such information is only as accurate as the Council information on which such information is based. HPPI accepts no responsibility for any error or omission in such information as a result of inaccurate Council records.
  27. HPPI makes no representation that the building complies with the requirements of any legislation (including any act, regulations, by-laws, etc), including but not limited to, the Building Act 2004, Health and Safety in Employment Act 1992, Fire Safety and Evacuation of Buildings Regulations 2006 or the Disabled Persons Community Welfare ACT 1975. The Inspection Reports is not a site or environmental report and HPPI makes no representation as to the existence of or absence of any “contaminated” (as that term is defined in the Resource Management Act) or any “hazard” (as that term is defined in the Health and Safety in Employment Act) in the building or property.
  28. HPPI does not guarantee or warrant the work of any contractor or service, or the integrity of any product, appliance or fixture, natural or processed or any building system or cladding system applied. The Inspection Reports is not a guarantee or Warranty as to the state of the building.

REPORT SCOPE

The following areas will be included in the inspection report:

  1. Site, Subfloor/Foundations, Exterior, Roof exterior, roof space (interior), Interior, Services and also Identified ancillary spaces, and accessory units. (Note these areas will only be inspected if we are advised prior to quoting)
  2. Although it is necessary to inspect the areas advised, it is not necessary to report on each one. Inspectors may choose to report only on an ‘exceptions’ or ‘information basis’ i.e listing only significant defects rather than also reporting on items that are in acceptable condition.
  3. The report should be seen as a reasonable attempt to identify any significant Fault or Defect visible at the time of the inspection rather than an all-encompassing report dealing with the home from every aspect. The reporting of any Significant Fault or Defect is on an exception only basis, rather than reporting on items, which are in acceptable condition for their age.
  4. “Significant Fault or Defect” is defined in the Standards as – “A matter which requires substantial repairs or urgent attention and rectification.”
  5. A Significant Fault or Defect will be addressed in the summary section of the report as maintenance or remedial work.
  6. A minor fault or defect is described as; A matter, in view of the age, type or condition of the building, does not require substantial repairs or urgent attention and rectification and which could be attended to during normal maintenance.

Multi-unit premises

  1. With an inspection carried out on large commercial or multi-level dwellings, external inspection may not be possible due to access to these areas!
  2. With multi-unit properties, the inspector shall inspect and assess only the condition of the interior and accessible parts of the immediate exterior of the particular unit, and all related accessory units. (accessory units must be advised and noted in the engagement letter or further added charges may apply)
  3. Note- A complete survey of the other common property areas would, if requested, be the subject of a special purpose property report, as the purchaser would have additional liability for the general maintenance of the common property.
  4. The person requesting the report shall identify any accessory units and ancillary spaces for the inspector.
  5. It is important to be aware of any ‘unit title’ or ‘Body corporate’ requirements, as the external areas generally fall under their jurisdictions.
  6. surveys of multi-unit buildings are often not requested under the mistaken belief that an examination of the body corporate or company records alone will adequately inform the purchaser. These records will only disclose defects which have been documented by the body corporate, company or the lessors in a cross lease. The records will not necessarily reveal all the defects.
  7. To determine the extent of any defects in the whole of the property, a survey of all the common property, and the interior of every unit would need to be carried out.
  8. A prospective purchaser should be aware that their liability to contribute to the cost of rectifying the building defects is not restricted by reference to the particular unit which they are proposing to purchase, but may extend to the whole common property. Thus, an inspection of the particular unit and its immediate surrounds may be of limited assistance to the prospective purchaser as a determinant of the possible total extent of their overall liability to contribute to the total cost of the work. Consequently, appropriate professional advice should be obtained.
  9. The purchaser agrees that with any commercial inspection report, the inspection and report ‘scope’ is required to be clearly advised in our engagement letter and agreed upon prior to any inspection taking place.
  10. PRELIMINARY RUN DOWN or QUICK RUNDOWN

  11. At HPPI, we provide written reports to the New Zealand standard 4306-2005. We understand that in some cases prospective purchasers may benefit from verbal reports, but these do not meet the NZS4306-2005 standard.
  12. With the extensive detail provided in a ‘HPPI Full written inspection report’, verbal advice can easily be misunderstood.
  13. To provide this sort after service to prospective purchasers, we have developed a HPPI ‘Preliminary run down’, a quick run-down of our inspection that may allow our clients to gain a basic understanding of the overall condition of the home and any expected ‘Special purpose reports’ or recommended ‘further investigation’ outside the scope of a pre-purchase report that may be required or referred to in any ‘Full written inspection report’.
  14. HPPI can undertake a full inspection of a property and retain the findings and information to complete a ‘Full written inspection report’. Once the site inspection has been undertaken our inspector can provide a ‘Preliminary run down’ over the phone or on site. This will advise of the major concerns and risk factors regarding a specific property. This is not a verbal report but rather an opportunity for buyers to decide if they wish to proceed and outlay the cost of a HPPI ‘full written inspection report’ to the NZS-4306 standard.
  15. A deposit for a full report will be required and if after a preliminary run down, the client decides not to proceed with any further due diligence, they can withdraw from our service at no added charge. If the client decides to proceed with a purchase, they can make full payment and request a full pre-purchase inspection report.
  16. If a purchaser proceeded with a purchase without obtaining a full written inspection report prior to any unconditional offer, HPPI cannot be held liable for any perceived omission or misunderstanding as they have elected to withdraw from our service and the terms of our contract have not been fulfilled by the client.
  17. DRONE ROOF INSPECTION

  18. If we are unable to access the roof due to health and Safety requirements, we can use a drone to undertake a visual inspection of over height areas. If a drone inspection is to be undertaken it will be shown in our quote. Drone inspections are a visual inspection of the roof surface, to advise of any major visible defects and weather tightness risks.
  19. The drone has limitations being that we have not physically walked on the roof. We will observe images and provide advice on further actions that may be required or recommended. You the client, agree and understand that we may not detect some roof defects that may have been detected had we physically accessed the roof.
  1. THE PURCHASER AGREES

  2. The purchaser agrees that the written Inspection report remains the property of HPPI. If another party requests a report on the same property HPPI can on sell the report at its discretion. You the purchaser of the report receive and own your named copy of the written inspection report, and agree it is view only and cannot be passed on or re-sold to any other party.
  3. The person requesting the report shall arrange reasonable access to the building and any locked or blocked spaces, this includes contents items. If items prevent access HPPI not move any personal effects.
  4. The Person requesting the inspection shall inform the Inspector of any accessory buildings and/or spaces like self contained granny flats, second kitchen, accessory units.
  5. Our inspectors will inspect all areas of the building that are reasonably accessible. For example;
  6. If there is an access hatch available to the roof space at least 450mm x 450mm that is not blocked, has a crawl space of at least 600mm x 600mm and is accessible from a standard 3.6-metre ladder.
  7. If there is access to the subfloor of at least 500mm x 400mm and a clearance of at least 400mm.
  8. For roof inspections the roof height needs to be accessible from a 3.6m ladder
  9. If there is risk of damage to any part of the building material, we will not access.
    • Note- access is also limited to the safety requirements of OSH.
  10. INDEMNITY INSURANCE COVER

  11. HPPI has in place the following insurance cover -Professional Indemnity, General Liability, Statutory Liability
  12. WHAT IS EXCLUDED FROM A STANDARD HPPI INSPECTION?

  13. The report will not normally include any of the following unless a special requested is made and agreed in writing.
  14. footings,
  15. concealed damp proof membraines,
  16. concealed drainage, plumbing pipes, electrical cabling or fixtures and fittings
  17. the operation of Chimneys or fire places,
  18. floor coverings,
  19. Appliances,
  20. ventilation systems,
  21. hot water systems,
  22. Hazards
  23. Pools, spa’s, saunas and equipment
  24. Also, the report will not include any of the following;
  25. Legal title issues,
  26. Building warrant of fitness or services described on a compliance schedule,
  27. Planning or resource consent issues,
  28. Consent issues (although any possible issues may be notified if picked up),
  29. Long term maintenance planning,
  30. Heritage obligations
  31. Body corporate rules, terms of cross lease or occupation agreements.
  1. LIMITATIONS OF LIABILITY

  2. Subject to any statutory provisions, if HPPI becomes liable to the Client, for any reason, for any loss, damage, harm or injury in any way connected with the completion of inspection and/or the Inspection Report, HPPI’s liability shall be limited to a sum not exceeding the cost of the inspection and the Inspection Report.
  3. HPPI will not be liable to the Client for any consequential or special loss of whatever nature suffered by the Client or nay other persons injured and the Client indemnifies HPPI in respect of any claims concerning any such loss.
  4. HPPI accepts no liability in relation to the inspection or this Inspection Report to any other person than the Client which this report is addressed too. HPPI will not be held responsible for any damage to the building when not directly the fault of HPPI.
  1. GENERAL
  2. Nothing contained in these terms and conditions shall be deemed to exclude or restrict any rights or remedies that the Client may have under the Fair-Trading Act 1986 or the Consumer Guarantees Act 1993 or at law. If any provision of these terms and conditions is illegal, invalid or unenforceable, such provision shall be deemed to be excluded or read down to the extent necessary to make the provision legal, valid or enforceable, and the remaining provisions shall not be affected.
  1. DISPUTES

  2. Should any dispute rise as a result of the inspection or Inspection Report, it must be submitted to HPPI in writing immediately.
  3. The Client agrees that in the event of a dispute, the contents of the Inspection Report may not be used to satisfy any terms of a sale and purchase agreement until the disagreement/dispute has been resolved.
  4. The Client agrees that if, after raising a dispute, the Client uses the inspection or Inspection Report to make an unconditional offer or confirm a sale and purchase agreement, the Client shall be deemed to have waived all rights to continue the dispute, and/or raise any future dispute or claim against HPPI.
  5. in the event of a claim/dispute regarding damage to a home, the Client will allow HPPI to investigate the claim prior to any repairs to the home being undertaken or completed. The client agrees that if it does not allow HPPI to investigate the claims of damage before repairs are carried out the Client shall be deemed to have waived its rights to continue with and/or make any future claim against HPPI.
  6. In the event of any dispute, the Client agrees not to disturb, repair, or attempt to repair anything that may constitute evidence relating to the dispute, except in the case of an emergency.
  7. TITLE AND BOUNDARIES

  8. HPPI has not undertaken a search of the title to the property, or a survey of the property and assumes no responsibility in connection with such matters. Unless otherwise stated it is assumed that all improvements lie within the title boundaries.
  1. NOT A GUARANTEE OR WARRANTY

  2. HPPI does not guarantee or warrant the work of any contractor or service, or the integrity of any product, appliance or fixture, natural or processed or any building system or cladding system applied. The Inspection Reports is not a guarantee or Warranty as to the state of the building.
  1. PUBLICATION AND USE

  2. Neither the whole or any part of this Inspection Report or any other report (whether verbal, video or written) or any reference to this Inspection Report or any such other report may be: included in any published document, circular or statement, whether hardcopy or electronic; transferred to any persons other than the Client; or distributed or sold, in each case without first obtaining the written approval of HPPI. The Inspection Report is not to be used in any litigation except with the prior written approval of HPPI.

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