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On-sold over-cap properties

Applications for the government’s On-sold over-cap programme closed on 14 October 2020.

If you have discovered that your home has missed earthquake damage, and your claim is under EQC’s statutory cap (usually $100,000), you can apply to us to have your claim reviewed through our usual Canterbury claims process. Find out more on our Canterbury claims review page or contact us.

As Canterbury is a known natural disaster-affected area, it’s particularly important that homebuyers are thorough in their due diligence.

An EQC assessment is not a substitute for a pre-purchase inspection. Pre-purchase inspections are much broader in scope and often begin with a builder’s report, but may also include other specialist reports from engineers, surveyors, electricians, plumbers and more. These reports will explain the general condition of the property and identify any potential issues, whatever the cause.

They can also complete thorough checks to ensure no earthquake damage has been missed and that repairs have been done to the standards of the Earthquake Commission Act 1993.

If you applied for the On-sold programme, we will have confirmed receipt of your application to you. Our On-solds team will provide eligible homeowners with all the information they need to progress their application and repair the earthquake damage.

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Determining eligibility for the On-solds programme

To be eligible to receive the ex-gratia payment under the On-sold support package you must meet the criteria and supply certain information to EQC.

More on eligibility
  • You must be the current owner of the property.
  • Your application must have been made on or before 14 October 2020.
  • You must have purchased the property within the specified time period. To meet the requirement, you must have:
    • made your offer to purchase the property after the natural disaster damage arising from the Canterbury Earthquake Sequence occurred to the property; and
    • made your offer to purchase the property on or before 15 August 2019.
  • If your Offer was subject to a Building Condition, you must have satisfied or waived that Building Condition on or before 15 August 2019.
  • The original owner(s) of the property must have lodged at least one claim with EQC.
  • Before you made your offer to purchase the property the claim(s) lodged by the original owner(s) to which an ex gratia payment relates must have already been assessed by EQC and determined to be under-cap.

In order to determine your eligibility  you need to supply the following documents within 60 days of registering your interest:

  • A copy of your Sale and Purchase agreement
  • Deed of Assignment (where applicable)
  • Any documents relating to removal of a condition of sale, for example a building inspection report, expert reports if this is relevant to your case.

Once your eligibility has been confirmed you will be asked to provide expert reports detailing the earthquake related damage and outlining the appropriate repair strategy. An EQC settlement specialist will be appointed to guide you through this process. EQC will cover the reasonable costs of professional reports such as engineers and geotechnical experts which relate to getting the earthquake damage to your property repaired, but not for other services like using a lawyer to work on your application.

If you applied and ticked the 'registration only' box on the on-sold property application form, we will be in touch to discuss next steps for your application.   

You can claim for damage that is under EQC’s statutory cap at any time. For under-cap claims, find out more on our Canterbury claims review page or contact us.

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What is payable under the policy

If you qualify, payment will be based on how the property was repaired and a new scope of works.

More on payment

The scope of works takes into account: 

  • the work required to repair the natural disaster damage in accordance with the EQC Act, and  
  • any other reasonable cost of that repair work.  

We may have settled the original homeowner’s claim by a managed repair (where we undertook the entire repair process), cash payment (where the homeowner receives a cash payment and manages the repair themselves), or a combination of the two.  

If a previous homeowner received a cash payment for some or all of the repairs, and those repairs need addressing, you will need to find out who did the work, and what warranties are in place. You can read about warranties on the Ministry of Business, Innovation and Employment’s building website

If you find that the repairs have not been carried out, you may need to find out more from the person you bought the home from, and the real estate agent you used to buy the property.  

It’s important that any payment you receive is used for repairing or replacing damaged property. Any future insurance claims or cover may be affected if the payment is not used for this purpose.  

Payments will be administered depending on the value of the over-cap portion of the payment. Find out more in our factsheet for on-sold over-cap property owners

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Has the EQC claim been assigned to you?

For the benefit of an EQC claim to be paid to you, the right to the claim needs to be transferred to you. This process is called ‘assignment’.

More on assignment

Read more about transferring a claim

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