Code compliance certificate (CCC): what it means when you buy a house

What is a code compliance certificate?

A code compliance certificate is issued by the council when it's satisfied that building work matches the building consent. The consent lets you start the work, and the CCC confirms the finished work was built as approved.

The building owner is responsible for getting the CCC, even if the builder applies for it. Once the owner applies, the council has 20 working days to decide. If the owner hasn't applied within two years of the consent being granted, the council will contact them, and it may inspect the work or issue a notice to fix.

The CCC matters for more than just the council. According to building.govt.nz, without a CCC a bank might not release the final payment to the builder, and insurance could cost more.

How to check a house has a CCC

The LIM report lists the building consents the council has issued for the property and shows whether each has a CCC. Walk through the house and compare each room with the LIM. If you see an extension, new bathroom, deck or converted garage, there should be a consent and a CCC for each.

The LIM only includes work the council knows about. If you see work that isn't listed, it was either done without a consent or didn't need one.

Open consents: a consent with no CCC

An open consent means the council approved the work but didn't sign it off. Sometimes that's because paperwork is missing, like an electrical certificate that never reached the council. In other cases, the work failed an inspection, or the owner stopped asking for inspections because they knew it wouldn't pass.

Ask the vendor why the consent is open. If they say the work is finished but was never signed off, ask them to apply for the CCC before settlement or make your offer conditional on getting it.

Unconsented work and certificates of acceptance

If work that needed a consent was done without one, the council can't sign it off. The owner can apply for a certificate of acceptance instead. Councils can usually issue one for work done after 1 July 1992 without a consent. If the council says no, it must issue a notice to fix explaining what needs to be done.

A certificate of acceptance isn't the same as a CCC. The council can only approve what it can see, so the certificate may only cover part of the work. Walls, floors and foundations are often covered by the time someone applies.

Houses built before 1992

Building consents started on 1 July 1992. Work done before then won't have a CCC, so an older house without one isn't a problem on its own. Check any work done since 1992, like a new kitchen, bathroom or deck.

Granny flats and other work without a consent

Some work doesn't need a building consent at all, so it won't have a CCC. Small standalone granny flats up to 70 square metres can now be built without a consent, as long as the owner tells the council before the work starts and once it's finished, and licensed building practitioners do or supervise the work. The council should have a record of a granny flat built this way, so ask for it when you get the LIM.

What to do if the house you want has no CCC

A missing CCC doesn't always mean you should walk away. Work out how serious the problem is before you decide.

• Find out why the CCC is missing. Ask the vendor and read the council's property file.
• Get a builder or building inspector to look at the work and tell you what it would take to fix it or get it signed off.
• Talk to your lawyer about conditions, such as the vendor getting the CCC before settlement.
• Check with your bank and insurer that they're happy to go ahead.

If you know what it will cost to fix, a missing CCC can help you negotiate the price down. If it's your first home and you don't know anyone in the trade, a house with every CCC in place is the safer choice.

Common questions