You may have seen the recent media coverage about the changes to the Natural Hazards Commission On-sold support programme (On-sold programme). The changes seek to prevent further cost blowouts and encourage homeowners to reach a timely settlement.

The On-sold programme was established to help property owners who purchased a home which was repaired after the Canterbury earthquakes, where those repairs were later found to be inadequate. To qualify for the On-sold programme, your home needed to have been assessed by the Earthquake Commission (EQC – now the Natural Hazards Commission) as “under-cap” (meaning EQC’s assessment of the damage was less than $100,000 + GST). The deadline for acceptance into the On-sold programme was 14 October 2020.

The On-sold programme provides ex gratia payments (meaning the payment is made without legal obligation or acceptance of liability) to eligible homeowners to cover both failed repairs and missed damage in the prior repair work.

The changes that have now come into effect (as of 4 November 2024) are as follows:

1. Settlement amounts are limited to 1.5 times the current rateable capital value of the property;
2. Settlement deeds must be signed within 30 business days of the offer being made;
3. Building works must start within six months of all parties signing the settlement deed; and
4. Pre-construction project management costs under the On-sold programme are limited to 4% of the ex gratia payment.

Eligible homeowners with On-sold settlement offers should contact Sarah Manning, Principal (03 343 8456 /sarahm@mmlaw.co.nz) or Angus Mossman, Solicitor (03 343 8582 /angus@mmlaw.co.nz) to discuss options.