Crown offers for flat land residential red zones

Offer period extension for Port Hills residents

10 June 2013

The Crown offer expiry date for property owners in the Port Hills residential red zone has been extended. This extension will now give Port Hills property owners until 31 January 2014 to accept the Crown's offer.

Read the media release for more information »

Vacant, uninsured improved or commercial properties in the flat land residential red zone

28 March 2013

If you accept the offer of 50% of the RV land value for your land in the residential red zone, you will not be prevented from bringing judicial review proceedings against the Chief Executive of CERA or the Minister for Canterbury Earthquake Recovery and/or arguing that you should have been paid 100% of the 2007 Rating Valuation.

By the same token, CERA remains free to support the lawfulness and reasonableness of the offer of 50% of the land value.

On this page:

 

Overview

Type of offer

Final date to accept

Final settlement date

Insured residential properties

31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West)

31 July 2013 (or 31 August 2013 for properties in South New Brighton and Southshore West)

Not for profit properties

31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West)

31 July 2013 (or 31 August 2013 for properties in South New Brighton and Southshore West)

Properties under construction

31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West)

31 July 2013 (or 31 August 2013 for properties in South New Brighton and Southshore West)

Vacant land

31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West)

Within six weeks after signing the agreement for Sale and Purchase

Commercial/industrial insured properties

31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West)

31 July 2013 (or 31 August 2013 for properties in South New Brighton and Southshore West)

Uninsured – commercial industrial and residential properties

31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West)

31 July 2013 (or 31 August 2013 for properties in South New Brighton and Southshore West)

Insured residential leasehold properties – Waimakariri District

31 March 2013

31 July 2013

 

Video: Residential red zone settlement process

This video, featuring CERA's Wendy Rabbidge, outlines the residential red zone settlement process.

 

Insured residential properties

If you own an insured residential property in the flat land residential red zone you will receive an offer from the Crown to buy your property.

This offer does not extend to insured residential property in the Port Hills red zones or the Central City. Details for the offer to insured residential property in the Port Hills red zones are available on the Port Hills crown offer page.

The following two options are available if you qualify for and wish to accept the Crown's offer:

Option 1

The purchase price paid for your property will be based on the most recent rating valuation for your land, buildings and fixtures and the Crown will take over all insurance claims for the damage to your property. Please use the Option 1A sale and purchase agreement.

Please note that if your property is a unit title and the insurance policy for the property is held by a body corporate or your property is a cross lease and is insured under a policy that is jointly held with cross lease neighbours the Option 1B sale and purchase agreement will need to be used.

Option 2

The purchase price paid for your property will be the most recent rating valuation for your land and the Crown will take over your EQC claim for land damage only. You will retain the benefit of all insurance claims for the damage to your buildings and fixtures and will continue to deal with EQC and your insurer to settle those claims. Please use the Option 2A sale and purchase agreement.

Please note that if your property is a unit title and the insurance policy for the property is held by a body corporate or your property is a cross lease and is insured under a policy that is jointly held with cross lease neighbours the Option 2B sale and purchase agreement will need to be used.

Owners of properties that are eligible for the Crown offer have until 31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West) to accept the Crown offer.

The final date property owners can select to settle with the Crown is 31 July 2013 (or 31 August 2013 for properties in South New Brighton and Southshore West).

 

Not for profit organisations

If you are a not for profit organisation and own an insured non-residential property in the flat land residential red zone you will receive an offer from the Crown to buy your property.

This offer does not extend to insured residential property in the Port Hills red zones or the Central City. Details for the offer to insured residential property in the Port Hills red zones are available on the Port Hills crown offer page.

To qualify for an offer the owner must:

  • be able to establish to the satisfaction of the Crown that they are a not-for-profit (community) organisation; and
  • hold insurance for natural disaster (including earthquake) damage for all buildings located on the property.

The following two options are available if you qualify for and wish to accept the Crown's offer:

Option 1 - the purchase price paid for your property will be based on the most recent rating valuation for your land, buildings and fixtures and the Crown will take over all insurance claims for the damage to your property.

Option 2 - the purchase price paid for your property will be the most recent rating valuation for your land. You will retain the benefit of all insurance claims for the damage to your buildings and fixtures.

Owners of properties that are eligible for the Crown offer have until 31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West) to accept the Crown offer.

The final date property owners can select to settle with the Crown is 31 July 2013 (or 31 August 2013 for properties in South New Brighton and Southshore West).

 

Dwellings under construction

If you own an insured property under construction in the flat land residential red zone you will receive an offer from the Crown to buy your property.

This offer does not extend to insured residential property in the Port Hills red zones or the Central City. Details for the offer to insured residential property in the Port Hills red zones are available on the Port Hills crown offer page.

To qualify for an offer, an owner or their builder must have held:

  • a building consent for the dwelling under construction and had commenced building that house before 22 June 2011; and
  • building or contract works insurance for the property as at 22 February 2011 or that commenced on a date between 22 February 2011 and 22 June 2011.

The following two options are available if you qualify for and wish to accept the Crown's offer:

Option 1 – a rating valuation equivalent value will be assessed for the property by the rating valuer in accordance with Rating Valuation Rules. The assessed value will reflect the stage of construction reached on 15 June 2012 and will be benchmarked against the most recent rating valuation for the land.

Option 2 - the purchase price paid for your property will be the most recent rating valuation for your land only.

Owners of properties that are eligible for the Crown offer have until 31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West) to accept the Crown offer.

The final date property owners can select to settle with the Crown is 31 July 2013 (or 31 August 2013 for properties in South New Brighton and Southshore West).

 

Vacant land

The Crown has agreed to extend an offer to vacant land in the flat land residential red zones.

This offer does not extend to vacant land in the Port Hills red zones or the Central City.

The purchase price paid for your property will be 50% of the most recent rating valuation for your land. The value of the offer acknowledges the land is damaged and recognises that the land is uninsured.

Owners of properties that are eligible for the Crown offer have until 31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West) to accept the Crown offer.

Owners must settle the sale of their land within six weeks after signing the Agreement for Sale and Purchase or the final settlement date, 31 July 2013 (or 31 August 2013 for properties in South New Brighton and Southshore West), whichever comes first.

 

Insured commercial/industrial properties

If you own an insured commercial or industrial property in the flat land residential red zone you will receive an offer from the Crown to buy your property.

This offer does not extend to insured commercial/industrial properties in the Port Hills red zones or the Central City.

The following two options are available if you qualify for and wish to accept the Crown's offer:

Option 1 - the purchase price paid for your property will be based on the most recent rating valuation for your buildings and fixtures, and 50% of the most recent rating valuation for the land. The Crown will take over all insurance claims for the damage to your property.

Option 2 - the purchase price paid for your property will be 50% of the most recent rating valuation for your land.

The value of the offers acknowledge the land is damaged and recognise that the land is uninsured.

Owners of properties that are eligible for the Crown offer have until 31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West) to accept the Crown offer.

The final date property owners can select to settle with the Crown is 31 July 2013 (or 31 August 2013 for properties in South New Brighton and Southshore West).

 

Uninsured commercial/industrial and residential properties

If you own an uninsured commercial or industrial property in the flat land residential red zone you will receive an offer from the Crown to buy your property.

Uninsured properties include those where the owner has never held insurance for their property as well as those who may have been insured at some point but do not meet the insurance requirements under the Crown offer for insured properties.

This offer does not extend to uninsured properties in the Port Hills red zones or the Central City.

The Crown purchases the land and all buildings and fixtures on the land and any insurance or EQC claims for damage to the land at 50% of the most recent rating valuation of the land only. The value of the offer acknowledges the land is damaged and recognises that the property is or has become uninsured.

Owners of properties that are eligible for the Crown offer have until 31 March 2013 (or 31 May 2013 for properties in South New Brighton and Southshore West) to accept the Crown offer.

The final date property owners can select to settle with the Crown is 31 July 2013 (or 31 August 2013 for properties in South New Brighton and Southshore West).

 

Insured residential leasehold properties – Waimakariri District

If you own an insured leasehold property owned by the Waimakariri District Council you will receive an offer from the Crown to buy your property.

Option 1 – the Crown purchases the land and buildings and fixtures on the land and takes over the EQC and insurance claims for damage to the buildings and the land.

Option 2 – the Crown purchases the land and all buildings and fixtures on the land but only takes over the EQC claims for land damage. The leaseholder retains the benefit of all insurance claims for damage to the buildings and continues to deal with their insurer and EQC to settle those claims.

Both options are conditional on the leasehold owner entering into an agreement with Waimakariri District Council for the purchase and merger of the freehold interest in the land and an assignment of any interest Waimakariri District Council has in the EQC and insurance claims for the property.

Owners of properties that are eligible for the Crown offer have until 31 March 2013 to accept the Crown offer.

The final date property owners can select to settle with the Crown is 31 July 2013.