A recent New Zealand case highlights how homeowners should beware of pretty pictures and the sales pitch when choosing a builder.
The High Court has allowed an appeal in Nelson v Nook Homes Ltd, a case about a pool house that the homeowners believed – based on online marketing images and a showroom conversation – would be built with flat, level access. Months after the contract was agreed, the homeowners realised that the design would not be flush with the ground.
The parties tried to resolve the dispute before going to court, but eventually the homeowners filed a District Court claim on 26 October 2023 seeking to cancel the contract.
After they failed in the District Court, the homeowners appealed to the High Court. The appeal was heard on 18 August 2025 and decided in their favour on 18 February 2026.
Each party likely incurred significant costs to litigate the dispute which centred on whether there was a misrepresentation about the design of the pool house.
The key lesson is simple: put important terms in the written contract. Even though the homeowners eventually won, success did not come quickly. Recovery is also uncertain because the builder went into liquidation before the High Court judgment was issued.
