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This is the conversation we had to have with our client 72 hours before the auction.
The answer wasn’t what our client wanted to hear.
Our clients had live approval to bid.
The bank had reviewed the record of title and agreement. Everything looked fine.
But once we reviewed the LIM report, something didn’t add up:
Carport built 1966. Permit issued.
Demolish garage and carport 1993. CCC not issued.
Carport built. CCC issued 1993.
Was there ever sign off for the demolition?
We didn’t yet have the full property file, and the auction was in three days.
With no further info available, we made the logical assumption: the owner got a CCC for the rebuild but forgot (or never applied) for one to demolish the original structure.
"We are going to have to tell the bank"
My client's response:
“If we need to rebuild it, it’ll cost $5 to $10K. That’s not material.”
Technically, they weren’t wrong.
But the real risk wasn’t the cost.
It was lender exposure and compliance costs to fix with Auckland Council.
This wasn’t about a carport anymore. It was about bank security.
If you’re buying in cash, you can ignore a missing CCC.
But if the bank is putting up 80 to 90 percent, they get the final say.
And if they aren’t told about something material, they have options:
Once the mortgage is registered, the purchaser’s lawyer gives an undertaking to the bank that:
“All material facts have been disclosed.”
If you miss something—even something the client considers minor—you breach that duty.
Now imagine trying to fix that post-settlement.
Here’s how I explain it to clients:
Buying a house is like building a puzzle.
Early on, we snap together the easy stuff—the outside edges:
Sale and purchase agreement, title, finance approval.
But the picture only becomes clear once the middle pieces are in place — LIM, property file,
consent history, disclosures, etc.
Those pieces take time to find. Some are missing altogether.
And by the time we’ve nearly finished assembling it, we’re two days from auction.
That’s when we spot a piece that doesn’t fit.
And here’s what clients often miss:
Just because they’re happy to take the risk doesn’t mean the bank is.
In this case, rebuilding the carport might only cost $5–10K.
But resolving the missing CCC is trickier:
If this property is ever subject to a mortgagee sale, and the buyer’s finance gets declined because of that unresolved LIM issue, guess who’s stuck holding the asset?
That’s why banks care.
It’s not about your client’s comfort level — it’s about their own risk on resale.
Here’s what we did to keep this deal alive:
That gave our clients the green light to bid at auction—with eyes open.
