Cyclone Gabrielle Category 3 Voluntary Buy-Out Advice

On 14 September 2023 the Hastings and Napier District Councils confirmed that they had adopted a Voluntary Buy-Out Policy for Residential Property and Residential Property Rights of those in Category 3 areas affected by Cyclone Gabrielle.

The Category 3 Voluntary Buy-Out Policy sets out how those purchasers will be undertaken.

Category 3 Voluntary Buy-Out Policy

The Category 3 Voluntary Buy-Out Policy is available under the Resources tab.

Staged Process to the Voluntary Buy-Out Procedure

The Voluntary Buy-Out procedure is a staged process:

1. The first stage is an initial meeting between the owners and the Council and the Council’s valuer. The owner may attend the meeting with a support person or professional advisor. If an owner wishes to receive an Offer then they will be required to sign a preliminary agreement either at or following the initial meeting that records the agreed process and respective undertakings needed to finalise the Offer, and provide the Council with a copy of all relevant insurance claims settlement information, including the Scope of Works and the Insurance Settlement Sheet that the owner’s insurer has provided.

2. At the second stage the Council will prepare an Offer in accordance with the valuation process.

3. At the third Stage the Council representative will present the owner with an Offer, including a Sale and Purchase Agreement, and any further terms and conditions discussed at the initial meeting. The offer will remain open for three months after the owner receives it.

Content of Voluntary Buy-Out Offer

There are two primary bases on which offers are made – A Property Purchase Offer and a Residential Relocation Offer.

• Owners of Residential Properties can elect to pursue a Property Purchase Offer or a Residential Relocation Offer. The election can be made at the time of the initial meeting or at the time of the Council’s Offer.
• Owners of Mixed – Use Properties are only eligible for a Residential Relocation Offer.

Reimbursement for Legal Fees and Valuation Costs

The Council has confirmed they will reimburse owners:

• up to $5,000 excl GST (toward valuers and legal fees) where they have incurred this cost before they are presented with an Voluntary Buy-Out Offer by the Council;
• up to $ 5,000 excl GST (toward legal fees on finalising a sale and purchase agreement and conveyancing costs) if they enter into and settle a Sale and Purchase Contract with the Council following presentation of a Voluntary Buy-Out Offer.