The Realities of Property Inspections in NZ

Denese Konowe

Alright, welcome back to Kiwi Real Estate, Inside Out. I’m Denese Konowe, and as always, I’m joined by my partner in crime, Dr Lee Konowe. Today, we’re getting into the nitty-gritty of property inspections in New Zealand—what’s legal, what’s risky, and what keeps agents up at night. Lee, you ready for this?

Dr Lee Konowe

I’m as ready as I’ll ever be, Denese. And, you know, this is one of those topics that just never seems to get less complicated. The compliance landscape for property inspections is, well, let’s just say it’s a moving target. Every year, it feels like there’s a new standard or a new rule we have to wrap our heads around.

Denese Konowe

Absolutely. I mean, just look at the Healthy Homes Standards rollout a few years back. I remember the scramble—agents, property managers, even landlords, all trying to figure out what needed to be disclosed, what paperwork was required, and how to avoid getting caught out. I had one agent call me in a panic because she’d just realized her entire office policy was out of date overnight. We had to rewrite everything, retrain everyone, and hope we hadn’t missed anything in the meantime.

Dr Lee Konowe

And it’s not just the Healthy Homes stuff. There’s the Real Estate Agents Act, the Code of Conduct, and then you’ve got these high-profile cases where agents missed something during an inspection—maybe a leaky home, maybe unconsented work—and suddenly, they’re facing fines or, worse, a reputation hit that’s hard to recover from. I mean, the rules say you have to disclose what you know, or what you ought to know as a competent agent, but that’s a pretty big grey area sometimes.

Denese Konowe

Yeah, and the pressure to keep up is real. Especially when the inspection industry itself is unregulated here. Anyone can call themselves a home inspector—no training, no insurance, nothing. So agents are stuck in the middle, trying to do the right thing, but sometimes relying on reports that might not be worth the paper they’re printed on. It’s a legal minefield, honestly.

Dr Lee Konowe

And let’s not forget, if you miss something that you should have picked up, or you don’t disclose an issue before an offer is drawn up, you’re not just risking a slap on the wrist. You could be looking at disciplinary action, or even being struck off. It’s a lot of pressure, and it’s no wonder agents are always a bit on edge when it comes to inspections and compliance.

Denese Konowe

And that brings us to the next headache—managing what clients expect from these inspections. I mean, Lee, how many times have we seen buyers who think the agent is basically a building inspector, a plumber, and a psychic all rolled into one?

Dr Lee Konowe

Oh, too many times to count. There’s this idea that if you’re the agent, you should know every single thing that could possibly be wrong with a property. I had a case—this was a few years back—where an agent was blamed for missing moisture issues in a house. The buyer was furious, but the thing is, the agent had recommended a proper inspection, and the buyer decided to skip it to save time. It turned into a real mess, and honestly, it all came down to a breakdown in communication.

Denese Konowe

Exactly. And sometimes, it’s not even about what’s in the report—it’s about what people think should be in the report. Like, I’ve had buyers ask why the inspection didn’t pick up on things hidden behind walls or under floors. I have to remind them, these are visual inspections, not X-ray scans. And if you want more, you need to bring in a specialist. But that’s not always an easy conversation, especially when emotions are running high.

Dr Lee Konowe

And let’s not forget sellers. Sometimes they’re convinced their house is perfect, and they get defensive if an inspection turns up anything at all. Or they want to gloss over issues, thinking it’ll scare buyers off. But as we talked about in our episode on ethics, you can’t just sweep things under the rug. Full disclosure is the only way to protect everyone involved.

Denese Konowe

Right, and the code is clear—agents have to disclose any defects they know about, or ought to know about. But that doesn’t mean you have to list every little thing in the ad or at the open home. It’s about timing and fairness. Still, it’s a balancing act, and sometimes, no matter how careful you are, someone’s going to feel let down. That’s just the reality of the job.

Dr Lee Konowe

And then there’s the issue of buyers relying on reports provided by the seller. We see it all the time—people think, “Oh, there’s a building report, I’m covered.” But if it’s not commissioned by the buyer, there’s no legal recourse if something’s missed. That’s why we always say, get your own independent inspection. It’s not just a box-ticking exercise—it’s about protecting yourself.

Denese Konowe

So, let’s talk about what agents can actually do to manage all this risk and make the process smoother for everyone. One thing I always push is using third-party, qualified inspectors—ideally, someone with InterNACHI certification and proper insurance. It’s not just about ticking a compliance box; it’s about making sure the report actually means something if things go sideways.

Dr Lee Konowe

Yeah, and documenting everything is key. If you’re an agent, keep a record of every disclosure, every conversation, every recommendation you make. If you suggest a moisture test or a LIM report, put it in writing. That way, if there’s ever a dispute, you’ve got a paper trail. It’s not glamorous, but it’s saved a lot of people from headaches down the line.

Denese Konowe

And don’t underestimate the value of pre-inspection prep. I’ve run training sessions where agents shared their best tips—like walking the property with the seller before listing, checking for obvious red flags, and making sure all documentation is ready to go. It’s amazing how much smoother things go when everyone’s on the same page from the start. We’ve seen a real drop in post-sale disputes when agents take that extra step.

Dr Lee Konowe

And for buyers, it’s about asking questions. If something in the report doesn’t make sense, don’t just shrug and hope for the best. Get clarification, get estimates for repairs, and make your offer conditional on being satisfied with the inspection and the LIM. It’s not about being difficult—it’s about making an informed decision. And for sellers, being upfront about any issues, even if they’ve been fixed, builds trust and can actually help the sale go through more smoothly.

Denese Konowe

At the end of the day, it’s about transparency and preparation. The more everyone knows going in, the fewer surprises there are later. And as we’ve said in past episodes, whether it’s ethics, complaints, or compliance, it all comes back to open communication and doing the right thing—even when it’s not the easy thing.

Dr Lee Konowe

Couldn’t have said it better myself, Denese. Alright, that’s a wrap for today’s episode. If you’ve got questions about inspections, compliance, or just want to share your own horror story, drop us a line. We’ll be back soon with more Kiwi real estate insights. Denese, always a pleasure.

Denese Konowe

Thanks, Lee. And thanks to everyone for tuning in. Take care out there, and we’ll catch you next time on Kiwi Real Estate, Inside Out. Bye for now!

Dr Lee Konowe

Bye, Denese. Bye, everyone.