Captions were made with the support of NZ On Air. www.able.co.nz Copyright Able 2021 - Tonight on Fair Go ` a very expensive eyesore. - I said 'Is this ridiculous structure staying here? 'Like, is it going to be taken down when we get in?' - Short answer? No. - To me, that seems pretty major. Like, the person would not have signed up for that contract if they had known it was there. - So what are you rights when you buy off plans and get an ugly surprise? - My mum's in Henderson, and if we call her from the landline, yup, you pay a toll charge. - Did you know you have to pay to call some parts of your own city? - Pretty unfair. - That's stupid. - Keep watching to find out why. Tena koutou katoa, welcome to the show. Now, we need to talk about housing, because it's in a state. And it seems no one knows when things will get better or more affordable. What we do know is that developments are popping up everywhere, and the opportunity to get in before a brick has been laid makes sense. But does buying off-the-plans mean less risk? Kaitlin investigates. - It came out of nowhere without a whisper on what 'it' was,... - MAN: We thought it was just... - WOMAN: Scaffolding. - Yeah, scaffolding. - ...why 'it' was there,... - It looks like pull-up bars or something like that. - ...or how long 'it' was staying. - It is a pretty hideous eyesore, and... I guess you just have to look at it to... see how bad it looks. - 'It' is this ` a fire sprinkler system for this power transformer. It's what Aoife and Ryan see every day from the back door of their brand-new apartment It's not a view they planned on because it wasn't in the plans they bought off. The Sunset West developments in Te Whanganui-a-Tara, Wellington, seemed to have at all ` a chance to live near the city centre and with an affordable price tag through the KiwiBuild scheme. Even then, it took some luck, with Ryan and Aoife entering a ballot. - All of a sudden we got picked out and we were thinking, 'All right, we're doing this.' It's... It kind of got more exciting by the minute. - They were assigned a one-bedroom apartment on the ground floor, which they could buy for just shy of half a million dollars. - Yeah, it seemed perfect. - We just felt lucky, I guess. - And timely, with a baby now on the way. After signing on the dotted line, they began an exciting wait for the arrival of the little girl and their new home. - And as it was built, it was good to kind of be living close by that we could pull off and have a look and see what the progress was. - That's how they discovered this attached to their courtyard wall, cemented into the ground. So they went to the developer Nightingale Group for an explanation. - I said, 'Is this ridiculous structure staying here? 'Like, is it going to be taken down when we get in?' - The first response was brief ` the sprinkler pipes were a council requirement. - She just said, 'No, it's permanent,' but it was kind of a 'nothing to see here' situation, which kind of would make you think to yourself, 'Am I the mad one?' - Before we go forward with the story, we have to go back to 2017. That's when the developer Nightingale Group had planned to put a transformer on nearby council land. It got resource and land use consents for the project. But in September 2020, the Wellington City Council denied them permission to use public land. So the transformer had to be placed on site, ending up outside some of the apartments, including Ryan and Aoife's. In November 2020, so two months later, the couple signed a sale and purchase agreement. Now, the transformer was there by then, but they say they didn't know it was permanent. - I understand these things happen in construction and dealing with the council, but you didn't plan on telling us at all. - Come December, a fire protection system was designed. Nightingale says that design wouldn't have been visible from the couple's apartment. But in January, council guidelines required the pipe work to be 3 metres high, so it wouldn't become a hazard to the public. Wellington City Council, however, say it had no input into the sprinkler design and told us the request to put the transformer on public land was unusual, as transformers are normally housed within the footprint of any development. Ryan and Aoife didn't spot the sprinkler system until June of this year, and their affected neighbours didn't find out until August when the couple put the word out on Facebook. - We would've hoped that they would have brought the issue to our attention, rather than the other way round. Or at least shown some good faith. It would've gone a long way to actually just resolving the issue if they did front-foot it. - Nightingale wouldn't meet the couple in person or front on camera for the story. The company says communication had strained with the pair, and they sincerely regret this. Ryan did get director Simon Nightingale on the phone, where he did share more details about the sprinkler. - I did ask him what he was planning to do to rectify the situation with the ground-floor owners and the owners just above it. And his response was, 'To be blunt, nothing.' - Simon says he was simply making it clear that there was nothing to be done about the sprinkler. However, he and the company do acknowledge they didn't communicate the change to Ryan and Aoife at the time and, in retrospect, feel they should have. Ryan and Aoife aren't the only ones feeling frustrated. Another affected owner tells us they're wild over the situation in what they call a lack of transparency. They say at a bare minimum, they would have expected proactive communication over the sprinkler. - That would have been what I would have recommended to my developer client if I was acting for them. - Joanna Pidgeon is an expert in property law. We asked for her opinion on this case. - There was a dramatic change when that the transformer wasn't going to be put on neighbouring land; it was put in front of that particular unit and courtyard. Communication is key, and in a timely way. - She says the paperwork that comes with developments is generally written by the developer's lawyer with the developer in mind. - There does need to be some flexibility for developers who might need to make minor changes, but I think the trigger is, is it a material thing or not? - Like, say, a transformer and sprinkler system? - To me, that seems pretty major. Like, the person would not have signed up for the contract if they'd known it was there. - And as for what options you have if something does go wrong ` - You can't contract out of the Fair Trading Act, so if there is a misrepresentation, you can use that. - An independent valuer has assessed a $25,000 loss to Aoife and Ryan's unit as a direct result of the transformer and sprinkler. - No matter what market we're in when we're selling it, we would end up getting $25,000 less than what we would if that wasn't there. - So they've asked Nightingale Group for that amount in compensation, but they've been refused. They were offered the option to cancel the contract and get a refund on the deposit, but that was the month before Ryan and Aoife were due to move into their new home. Nightingale Group did settle with another apartment owner they deemed to be worse affected for $9000. It says the valuation of the couple's apartment is inaccurate and that any negative effects are outweighed by how much their apartment is already worth in capital gain. - That's relevant to them; they've sold it to us at the price they've sold to us. - Ryan and Aoife were then offered a $2000 reduction on the price of their apartment, an offer the couple says doesn't even cover their lawyer fees. - So it's kind of just put a bit of a sour taste on something that would have otherwise been just so exciting. - Yeah, they've kind of took, like, a lot of the joy away. - Ryan and Aoife have chosen to pay in full and have their chance to be heard by the Disputes Tribunal. - Whatever is the fair outcome is a fair outcome, and that's all we've ever asked for. - We will, of course, keep across that hearing and let you know the outcome. Now, though, let's look at what you need to know before you commit to buying off plans. (CHILL MUSIC) Buying off-the-plans can be a really good option. It's often cheaper than buying an existing home, and you might not need such a sizeable deposit. But as we so often say, you need to do your research. First, and most importantly, make sure you're dealing with a reputable developer. You're relying on them to deliver what they promise on time. So, take a look at other properties they have been part of, check their credentials online, and talk to people. Next comes the paperwork. Sales and purchase agreements for buying off plans tend to favour developers. So it's even more crucial to know what you're signing up for. That means using a lawyer to check everything out. Ask questions like what happens if the developer goes into liquidation or if the company is sold; if construction is delayed, or if plans have to be altered; what are your rights if you or the developer wants to pull out of the contract? Also, find out what say you have in design and whether the likes of landscaping or security features are included. Remember, when you're buying off-the-plans, you won't get the same sense of the size of the spaces, the sun or light the home gets, the outlook, the noise, the quality of the fittings. So ask lots of questions about how the home will actually look and feel. Now, look, it's worth noting, the Real Estate Institute of New Zealand and the Auckland District Law Society are working on an agreement that offers more protection for buyers while still making sure developers get the support they need to get projects off the ground. Seems like it can't come soon enough. E haere ake nei. Coming up ` can retailers sell you something they don't actually have in stock? - I was really pissed off. Really pissed off. I felt like they had sold me something that didn't even exist. - ...which leads us to our next question ` did it have to? Really? Watch to find out if that's true. (FLY BUZZES) THINKS: Hmmm... If I get hurt, who's gonna give me a bath? * - Nau mai, hoki mai. Welcome back. Whether it's Afterpay, Humm, or some other scheme, there are now loads of ways to pay for things you want without immediately handing over all the money. But before all of these 'buy now, pay later' options, there was lay-by; you'd put the product aside and pay it off in instalments. As Garth explains, though, turns out even that can no longer be a straightforward transaction. - # Come, come, come, # come, come along now. # Run away from the hum-drum... # - This ad may look like a promo for a bizarre new game show, but it's selling something that's been out for three years. - iPhone XR. Wee upgrade from a 6, but you know... (CHUCKLES) - That's the phone that caught Rebekah's eye. And here's where she hoped to get it from, an online seller based in Hamilton called House Smile, so why isn't Rebekah smiling and why is she still on the 6? - I was really pissed off. Really pissed off. I felt like they had sold me something that didn't even exist. - This story isn't really about a phone; it's about a lay-by, a way to pay for something you can't afford right now, especially when you're raising a family on your own. - Well, I enjoy it. (LAUGHS) I like it. It's hard yakka, but it's just... I'm just used to it, so that's just what we do, you know? - So, last year, when a door-to-door seller from House Smile told her the XR could be hers for 53 weekly payments, she thought... - $25 a week was... It was OK for me. I could put that in my budget, and I could stretch that out to have something new for me for a change, sort of thing. (CHUCKLES) - You didn't wanna put it on the plastic? - I don't have credit cards. I don't like debt. - Saving up is how she pays for most things, so lay-bys work for Rebekah ` usually. So, lay-by is where you agree to pay for something in instalments. You get it after you've paid it all off, so the retailer is responsible for those goods until you do. But do they actually need to have what they're selling you? - Well, I thought it was just gonna be just like any lay-by, that they'd be holding it in their possession, that they were actually selling me something that they had in stock, you know, as advertised on their website, and stuff like that, that they have this phone. - But after a year drip-feeding $1326 to House Smile,... - # Come, come, come, # come, come along now... # - ...Rebekah didn't get an iPhone XR ` she got the run-around. - He said that they were still waiting for it to come, waiting for my phone to arrive, that they'd had to order it in or something, and that it wasn't there yet. They didn't have any in stock. - Rebekah waited. - F3. - House Smile told her they had it, then they didn't,... - Miss. - (SIGHS) Oh my God. You've got your boats hiding really well. - ...then they admitted to her in writing, no phone right now. That had taken six weeks, even more than the generous period House Smile gives itself to try to deliver once you pay it all off. - I finally spoke to the manager on the Monday. I said to him, 'I'm sick of being lied to.' I said` And I just told them straight, 'I don't ever wanna be a customer of yours again.' - That's Rahil Tharani, who owns House Smile. He isn't sure why his people said they didn't have the phone ` they do now. Surely you have to physically have what you're selling when you sell it, you know, when they sign up a year ago. Well, he's right about those rights, but they actually belong to you, the customer. Even if they don't, Rahil Tharani reckons his company has done nothing wrong because the Fair Trading Act doesn't state that the seller must have the goods, just what happens if they don't. So, is he right? Can you sell something lay-by that you don't physically have? Well, we checked that out, and maybe. - In general terms, the Fair Trading Act does not require the goods to be held in stock by the supplier at the time the lay-by sale agreement is entered into. - But it depends what the business is claiming. - The supplier must ensure not to mislead the consumer. - And in terms of your rights, well, say that retailer hasn't put the items aside, you can insist on a replacement or a full refund. As for Rebekah and her money... - They've agreed to give me a refund, but it would have to be over four weeks, and it wouldn't start till the following week. - Um... We're not so sure about a refund in instalments. Fortunately, within 30 minutes of Fair Go calling... - They paid me out the whole lot. (LAUGHS) I couldn't believe it. I absolutely couldn't believe it. Yeah, it blew me away. - You told me it's your birthday this weekend. Talk about timing. Are you splurging? - I've actually tucked it away in a savings account. I don't wanna touch it. (LAUGHS) I've still gotta get myself a nice phone. (LAUGHS) So yeah... But no, it's good. I'm gonna be much happier. Yeah, just knowing that I've got that money back and that... it's all settled. - A great result. Ka pai, Garth. Now, the Commerce Commission also told us the Fair Trading Act prohibits businesses from taking your money unless they have reasonable grounds to believe they'll be able to supply your goods within a specified time. And that seems simple enough to me. E haere ake nei. Coming up ` do any of you still bother with a landline? - There's only one person that actually rings us, but we do still have one. - Yeah, I think we know who that one person might be. Parents aside, lots of you still have landlines, and lots of you have to pay to call people, even in your own city. - My mum's in Henderson and if we call her from the landline, yup, you pay a toll charge. - Find out why next. * - Nau mai hoki mai. Welcome back. Well, the technology takeover has been swift, hasn't it? We're all totally used to taking calls on our computers, downloading content on our TVs and using apps to listen to the radio. But telephones still have their place. The big question is, what about the bills that come with them? Alistar takes a look. (ROBIN THICKE'S 'BLURRED LINES') - # Everybody, get up... # - How we communicate sure has changed. Now it's all about face-to-face ` at a safe distance, of course. Because thanks to the wonders of technology, we can see each other whenever we want, and usually for free. - Tony, I can see your underwear. - We can all see you! - But some of us prefer to stick to the old faithful, the landline. They're not the only ones. 706,000 households in Aotearoa have a landline. That's almost 40% of households in the country. A number which surprised us, if we're honest. But that's not the only unexpected discovery we made. We all know that if you want to call someone in another part of the country, you've gotta pay extra. But did you know that can happen if you wanna call someone within your own city? People using a landline who live in the suburbs on the outskirts of Tamaki Makaurau, Auckland, are charged national calling fees, or a toll call charge, when they call other Auckland suburbs, even though they're well inside the Auckland council boundary, suburbs like Helensville. And further south in Pukekohe. There's no doubt we've always liked a good chinwag. - NEWSREADER: The New Zealanders urged to ring up people in other towns has resulted in an increase of some 3 million toll calls a year. - The first long-distance calls were controlled by an operator, who would literally plug your line's cable into the relevant jack on their switchboard. - You're through now. - You were paying for the person who connected you and the distance the call had to travel. So that cost made sense. But seeing as we're beyond that technology now, why are some landline users still paying toll calls? - Well, it's a very historical thing that the industry has baked into the way we deal with phone calls. - That's Craig Young. He works for the Tech Users Association of New Zealand, formerly Telecommunications Users, and he, too, thinks these charges are outdated. - The industry itself needs to step away from this whole idea of it being these local calling areas and anything outside that is a toll call. It just doesn't make sense in this market these days. - Generally speaking, you pay around $14 a month to have a landline, with toll calls on top of that. Most of the people we spoke to were OK with paying for calls outside their home city, just not for the ones in it. Here's the boundary map for our biggest city, and you'll see some of the suburbs that are geographically within Auckland are outside Spark's Auckland pricing map. Spark says exchanges were built where the majority of people lived, and it was expensive to go from one to another. Districts were built around the exchanges, and each exchange had their own customer base and area code. The phone system we have today is still built around local exchanges and their individual area codes and calling zones. It's an issue for Vodafone customers, too. Vodafone says that's because the system is based on an old circuit infrastructure ` but change is coming. - We're transitioning approximately 10,000 customers still using the plain old telephone system, which includes legacy analogue voice technology on to newer and more efficient digital calling services before April 2022. - But no detail yet on what you might pay on those new calling services. Meanwhile, our third biggest telco 2degrees offers two landline products, one that uses broadband and includes free national calls, and another that uses a traditional copper line and includes free calling to local areas, but says ` Fewer of us might feel the need for a landline, but for many they still play an important role. As more and more households ditch the landline and our network technology is updated, surely it's time to ditch the extra call costs, too. - The phone companies want to charge you; that's a billing thing. They want to make some money out of you. And so they want to charge you for these calls, and they need to make the change. - And if they don't, you should. - It really pays to shop around. There are a number of different plans out there, you can get free local and national calling. - And it's not just Aucklanders, of course, paying to call within their own city; it's actually a nationwide issue. So wherever you live make sure you check with your provider that you're getting the best deal and don't be afraid to shop around. Well, that's it from us, but if you need any consumer advice and the latest on our Consumer Heroes competition, please go to our web page, because, of course, we're always here to help. We're on Facebook and Instagram. You can go to our webpage, which is tvnz.co.nz., email us ` fairgo@tvnz.co.nz, or you're more than welcome write to us ` PO BOX 3819, Auckland 1140. Thanks for watching. Until next week, wear a mask, wash your hands and stay safe. Po marie.