What you need to know about Spec Homes

What is a Spec Home anyway?

Halo Guarantees Limited consider a ‘Spec Home’ to be any residential dwelling built by a New Zealand Certified Builders Business member (or related entity) for the purpose and intention of on-selling for profit.

What is the Spec Home application process?

We now accept and assess Spec Home applications just like any other application. When we receive your application, we will review the information provided and assess it against our acceptance criteria. Once happy, we will issue a ‘Letter of Offer’ (i.e., a quote) and our invoice for payment. When you pay the invoice and/or accept our offer, we will send out a Completion Certificate to be completed, signed, and dated when the build is finished. We then issue the Halo 10-Year Residential Guarantee (Halo Guarantee) to the entity that owns the property at the date of practical completion – whether you have sold it or not.

If you, the builder, are still the owner of the property at completion, you will need to fill in the Completion Certificate and we will issue the Halo Guarantee in your name. When the property is on-sold you’ll then need to complete a Transfer of Ownership and submit this with the Sale and Purchase agreement and the $250 (+GST) transfer fee.

If you sell the property at any stage during the build, notify us immediately and provide a copy of the sale and purchase agreement. We will then update the application file with the new owner’s details, and they would fill in the Completion Certificate with the final build cost at practical completion. We can then issue the Halo Guarantee to them directly. There is no transfer fee involved if the sale happens before the Halo Guarantee is issued.

When do I apply?

As with all Halo Guarantee applications, we recommend that you apply as early in the process as possible and preferably before work starts. That way we can provide you with assurance that your build will be covered on completion. We can also provide advice, if we’re unable to accept your application, as to what you can do to get it accepted. For example, weathertightness risk can often be reduced by amending plans.

Can I claim against

the Halo Guarantee if it is issued to me?

Absolutely not. Under no circumstances can you, as the builder (or related entity), ever claim against a Guarantee. You would effectively be making a claim against yourself, and we would immediately reject any claim received from you. We might even ask you to give yourself a good talking to about fixing your own defective work! The Halo Guarantee is for the sole benefit of third-party homeowners when the property is sold. If you sell the property after practical completion, the purchaser, and any subsequent homeowners, will receive the remaining balance of the Halo 10-Year Residential Guarantee.

Any questions?

Please don’t hesitate to contact me directly, or get in touch with the team on 0800 141 490 or hello@halo.nz. We’re here to help!

David Lee Halo Guarantees Limited Chief Executive