Following a recent RNZ story into tiny home owners not getting what they paid for, RNZ has investigated what people’s rights are when facing a building dispute.
Consumer NZ Research Team Leader Rebecca Styles said consumers had several rights when things went wrong.
While many would be familiar with the Consumer Guarantees Act and the Fair Trading Act, For building work Styles said a defect repair warranty was in place for 12 months as well as an implied warranty in the Building Act, which lasted up to 10 years.
Depending on the type of contract, disgruntled customers could pursue dispute resolution avenues such as adjudication, mediation or arbitration.
If a business reached the point of liquidation, customers could be added to a list of creditors to be paid.
But Licensed Insolvency Practitioner Keaton Pronk warned secured creditors would be paid first.
Pronk recommended looking up the company through the Companies Office.
Checks on the names of the directors and shareholders may bring up any past business failings.
Any company registered in New Zealand needs to abide by the Companies Act, and being a company director comes with obligations.
Manager of integrity and enforcement at the Ministry of Business, Innovation and Employment (MBIE), Vanessa Cook, said every director of every company in New Zealand must act “in good faith and in the best interests of their company”.
Credit: radionz.co.nz
