Quick answer
Under ASP 11th edition clause 9.4, a buyer may cancel only if a building report is unsatisfactory on an objective assessment, not personal preference. Maintenance typical for a home's age on Remuera character stock may not suffice. Negotiated price adjustments are common instead.
Buyers on Remuera character homes often rely on a building report condition. Vendors assume any bad news means cancellation. The eleventh edition Agreement for Sale and Purchase narrows that assumption.
Clause 9.4 requires satisfaction on the basis of an objective assessment. That single phrase changes outcomes on villa and bungalow stock across eastern Auckland.
Clause 9.4 in plain terms
Where the front page marks a building report required, the agreement is conditional until the purchaser obtains a report satisfactory to them on an objective assessment.
Subjective discomfort is insufficient. A buyer who simply prefers a newer home cannot exit under this clause alone.
Common report items include moisture readings, roof maintenance, asbestos-containing materials in pre-1990 builds, scrim linings affecting insurance, and unconsented work.
The reasonable person test
Courts often ask whether a reasonable purchaser, knowing what was visible about age and condition, would treat the report as grounds to cancel.
Marketing that highlights heritage character or original condition sets expectations. A report saying the home is in good overall condition for its age may not support cancellation when further maintenance is noted.
Insurance unavailability or major weathertightness failure sits on the other end of the spectrum.
Remuera character homes specifically
Much Remuera stock dates to eras when building methods differed from today. Buyers who prize original detail accept ongoing maintenance as part of ownership.
Vendors should disclose known issues honestly. Buyers should inspect thoroughly before offering. Both reduce nasty surprises during the conditional period.
If you sell a home with known scrim or asbestos-containing materials, expect the conversation early. Price often reflects work at offer stage rather than at cancellation.
Practical resolution
When findings fall short of cancellation threshold, solicitors negotiate credits or repairs. That path is faster and cheaper than dispute for both parties.
Cancellation remains appropriate for genuinely material defects, especially where finance or insurance fails as a result.
If broad exit rights matter to you as a buyer, discuss a tailored due diligence clause with your solicitor and accept the competitive trade-off.
Vendors selling character stock in Remuera and neighbouring suburbs should expect building reports as standard. Prepare with disclosure and realistic pricing.
