Certificate of Acceptance

A Certificate of Acceptance (COA) is provided for under Section 96 of the Building Act 2004. It allows a building owner to seek retrospective recognition from the council for building work that was carried out without the required building consent, or where the consent was obtained but has since lapsed without a Code Compliance Certificate being issued.

A COA is not the same as a Code Compliance Certificate (CCC). The council can only issue a COA if it's satisfied 'on reasonable grounds' that the work complies with the Building Code. However, because the council didn't inspect the work during construction, a COA provides a lower level of assurance than a CCC. The council will note on the COA that it was unable to inspect the work during construction.

Applying for a COA typically involves providing plans, specifications, and evidence of compliance (such as producer statements, photographs, or invasive testing). The council may require the applicant to open up parts of the building for inspection. Costs vary but can be significant, especially if remedial work is needed.

Building work without a consent or CCC is a common issue in New Zealand, particularly in older properties and DIY renovations. A COA provides some assurance but is not equivalent to a CCC — it's a 'next best' option when proper consenting wasn't followed.

If a property has building work with only a COA, understand the limitations. Banks may accept COAs for lending purposes but may apply conditions. Insurers may also have reservations. If unconsented work has no COA or CCC at all, this is a more serious concern — consider whether to proceed and negotiate the purchase price accordingly.

The LIM report will show building consents, CCCs, and COAs. Your lawyer should review these records. If unconsented work is discovered during a building inspection, discuss with the seller whether they're willing to apply for a COA before settlement — or negotiate a price reduction to cover the cost.