Leaky Apartment in Body Corporate – vendor liable

In Sole v Hutton & ors [2025] NZHC 430 the High Court (Blanchard J) decided that the vendors of 3A in the Belle Mer apartments at 53 Marine Parade, Mt Maunganui , were liable to pay the purchasers $926,806.48 for breach of contractual warranty and misrepresentation under s 35 of the Contract and Commercial Law Act 2017.  The evidence was that in 2014 the body corporate obtained reports about leaky defects with the building.  The vendors owned the property in 2014 and knew about the minutes, but said they forgot about them.   Clause 11.2(7) of the sale agreement stated that the vendor has no knowledge or notice of any fact which might give rise to or indicate the possibility of:(a) the owner or the purchaser incurring any other liability under any provision of [the UTA] or the Unit Titles Act 1972; or (b) any proceedings being instituted by or against the body corporate. The Court reduced the repair costs claimed by 30% for betterment.