Found your dream home, but the seller won’t sort a CCC? Here’s what changes for your loan.
It’s a common (and stressful) scenario: you’ve found the place, but part of it, say a conservatory or bathroom renovation, was never consented or signed off with a Code Compliance Certificate (CCC), and the seller isn’t willing to sort it before settlement.
Missing building consents or CCCs don’t automatically kill a deal, but they do change how we need to approach financing. Here’s how we help clients get through it.
Why it matters for your loan
The bank is effectively investing in the property too, so anything that could affect its future resale value matters to them. If a missing CCC isn’t addressed, it can also make life harder for you (and your bank) when it’s your turn to sell.
Approaches that usually backfire
- Not mentioning it to the bank if known: this can breach your loan agreement if it comes to light later, and puts your legal position at risk too. Full disclosure from the start is essential.
- Sending the application through ton the bank with no plan: If there’s no clear plan to manage the risk, it’s an easy “no.”
- Relying on the real estate agent’s reassurance: Remember, agents act for the seller. Get your own advice before assuming an issue isn’t a big deal.
How we help package a stronger application
- Get a professional opinion first. A Licensed Building Practitioner can confirm whether the work actually needed consent. Sometimes what looks like a problem isn’t one and therefore disclosure may not be required.
- Sort insurance early. Talk to an insurance adviser (not an online quote) to confirm you can get full cover despite the missing CCC.
- Build the bank a clear story. We’ll help put together the numbers and paperwork the bank needs: confirmation of full insurance and a plan for resolving the CCC issue after settlement (for example, a Certificate of Acceptance, or removing the unconsented structure).
- Stay on top of any conditions. If the bank approves subject to fixing the issue within a certain timeframe, we’ll help make sure that’s tracked and actioned.
We’ve seen this exact issue before with an unconsented conservatory. Because the client came to the bank with insurance confirmed and a clear resolution plan, they had approval within three working days.
Your lawyer will handle the legal side, like reviewing title and drafting any special conditions, but if you’re facing a missing CCC and want to know whether it’s fundable, talk to us early. The right groundwork upfront makes all the difference.
Disclaimer: This content is general information only and is intended for educational purposes. HelloYello provides mortgage advice and does not provide KiwiSaver investment, legal, insurance, tax, or accounting advice.
