Buying a Monolithic or Plaster Home in New Zealand: What First Home Buyers Should Know

For first-home buyers, understanding the risks, protections, and steps involved in purchasing a monolithic or plaster home is crucial. This guide will help you navigate the process with confidence.

What Is a Monolithic or Plaster Home?

A monolithic home typically features a cladding system made of materials like:

• EIFS (Exterior Insulation and Finish System): A type of synthetic stucco.
• Plastered concrete or fibre-cement sheets: Often finished with a textured coating.

These homes are characterised by their smooth or lightly textured appearance and were designed to provide a modern, low-maintenance aesthetic. However, the construction methods used in some of these homes during the 1990s and early 2000s have been linked to water ingress problems.

Why Are Some Monolithic Homes Problematic?

The "leaky building crisis" in New Zealand was caused by a combination of factors, including:

• Poor design: Lack of eaves, flat roofs, or inadequate drainage systems.
• Substandard materials: Use of untreated timber frames that are vulnerable to rot.
• Defective construction: Improper sealing, flashing, or installation of cladding systems.
• Inadequate weatherproofing: Reliance on the cladding as the sole barrier against water ingress, without adequate drainage or ventilation.

Not all monolithic homes are affected, but those built between 1992 and 2004 are considered higher risk. Homes constructed after 2004, when building standards were updated, are generally less likely to have these issues.

Key Considerations for First-Home Buyers

1. Conduct a Thorough Building Inspection

Before purchasing a monolithic home, it's essential to hire a qualified building inspector who specialises in weathertightness issues. They will assess the condition of the cladding and underlying structure, and check for signs of water damage such as rot, mould, or staining. A thorough inspector will use moisture meters or thermal imaging to detect hidden issues, and review the home's design for features that may increase the risk of water ingress, such as lack of eaves or complex roof designs.

2. Review the Property's History

Ask the seller to provide:

• Building consent and code compliance certificates (CCC): Confirm that the home was built to the required standards and any remedial work has been signed off.
• Weathertightness reports: If the home has been tested or remediated, request copies of the reports.
• Maintenance records: Evidence of regular upkeep, such as resealing joints or repainting, can indicate a well-maintained property.

3. Understand the Legal Protections

New Zealand law provides several protections for buyers of defective homes:

• Weathertight Homes Resolution Services (WHRS): If a home is found to have weathertightness issues, you may be able to make a claim under the Weathertight Homes Resolution Services Act 2006. However, this applies only to homes where the damage occurred within 10 years of construction (extendable in some cases).
• Consumer Guarantees Act 1993: If the property was recently built or renovated, the seller may be liable for defects.
• Disclosure obligations: Sellers are required to disclose known defects. If they fail to do so, you may have grounds for a legal claim.

4. Consider the Costs of Remediation

If the building inspection reveals weathertightness issues, you'll need to factor in the cost of repairs. Remediation can range from:

• Minor fixes: Resealing joints, replacing flashings, or improving drainage ($5,000–$20,000).
• Major work: Full recladding, replacing timber frames, or structural repairs ($100,000–$300,000+).

Before proceeding, obtain quotes from licensed builders and consider whether the cost of remediation fits within your budget.

5. Check Insurance Availability

Some insurers are reluctant to cover monolithic homes, particularly those with known weathertightness issues. Before committing to a purchase, contact insurers to confirm they will provide coverage and ask whether the premium will be higher due to the property's cladding type. You should also ensure that any remedial work is covered by a warranty or guarantee.

6. Seek Legal Advice

A property lawyer can help you review the sale and purchase agreement to ensure it includes appropriate clauses, such as making the purchase subject to a satisfactory building inspection. They can also check for any warranties or indemnities from the seller regarding weathertightness, and advise on your rights if defects are discovered after the purchase.

Red Flags to Watch For

Be cautious if the home was built between 1992 and 2004, or if it has a complex design with multiple levels, flat roofs, or minimal eaves. Watch for signs of water damage such as peeling paint, staining, or soft or spongy walls. A seller who is unwilling to provide building consent or remediation records is a concern, as is a property that has been on the market for an unusually long time or has had multiple price reductions.

When a Monolithic Home Might Be a Good Buy

Not all monolithic homes are problematic. A monolithic home may be a sound investment if it was built after 2004 when updated building codes were introduced, or if it has been remediated to a high standard with a code compliance certificate and builder's warranty. A thorough building inspection should confirm there are no current or potential weathertightness issues, and the property should be well-maintained with no signs of water damage or structural concerns.

Final Thoughts

Buying a monolithic or plaster home can be a viable option for first-home buyers, but it requires careful due diligence. By conducting a thorough inspection, reviewing the property's history, understanding your legal protections, and seeking professional advice, you can make an informed decision and minimise your risk.

If you're unsure whether a monolithic home is right for you, consult with a property lawyer, mortgage adviser, and building inspector who can guide you through the process.