Discovering unlicensed gas work during a house sale is a serious matter in New Zealand — it can stall or kill a property deal, expose the seller to legal liability, and most importantly, put lives at risk. Whether you're buying, selling, or just found out your home has dodgy gas installations, here's what you need to know.
Why Unlicensed Gas Work Is Such a Big Deal
In New Zealand, all gas work — including installation, alteration, or repair of gas appliances, pipework, and fittings — is restricted work under the Gas Act 1992 and must be carried out by a licensed gasfitter registered with the Plumbers, Gasfitters and Drainlayers Board (PGDB). This isn't just a technicality. Faulty gas work can cause fires, explosions, carbon monoxide poisoning, and death.
When a licensed gasfitter completes work, they must issue a Certificate of Compliance (CoC). This document is your proof that the work was done correctly and to the required standard. No CoC means no legal sign-off — and that's a red flag for any buyer, their lawyer, or their bank.
What Typically Triggers Discovery
Unlicensed gas work often comes to light during:
- A pre-purchase building inspection by a qualified inspector
- A LIM report or council records check showing no permits or CoCs on file
- An insurance assessment or mortgage valuation
- A gas supplier or network company inspection
- A routine safety check by a licensed gasfitter
Inspectors and gasfitters can often spot telltale signs: non-compliant fittings, incorrect pipe runs, missing isolation valves, or appliances installed without proper fluing.
What Can Happen to the Sale
Once unlicensed gas work is identified, the consequences can be significant:
The Buyer May Pull Out or Renegotiate
Most sale and purchase agreements in NZ include conditions around building reports. If a buyer's inspector flags unlicensed gas work, the buyer may be entitled to cancel the agreement or demand a price reduction to cover remediation costs.
Finance May Fall Through
Banks and lenders take a dim view of non-compliant work. A mortgage valuer or insurer may flag the property, making it difficult for the buyer to secure finance until the issue is resolved.
The Seller May Face Legal Liability
If a seller knew about unlicensed gas work and didn't disclose it, they could face claims under the Contract and Commercial Law Act 2017 for misrepresentation. Even if they didn't know, they may still be required to remediate before settlement.
Insurance Could Be Void
Home and contents insurance policies typically exclude damage caused by non-compliant work. If something goes wrong with an unlicensed gas installation, the insurer may decline the claim — leaving the new owner seriously out of pocket.
What Needs to Happen to Fix It
The only proper fix is to have a licensed gasfitter inspect all affected work, carry out any necessary remediation, and issue a Certificate of Compliance. Depending on the scope of work, this may also require a building consent from your local council — for example, if a gas appliance was installed in a way that affects the building structure or weathertightness.
Always check with your local council about consent requirements. MBIE Building Performance provides guidance on what work requires consent and what falls under Schedule 1 exemptions, but gas work compliance sits separately under the Gas Act regardless.
Costs vary depending on how much work needs to be redone. As a rough guide, a straightforward inspection and CoC for a single appliance might cost a few hundred dollars, while extensive remediation of pipework or multiple appliances could run into the thousands. Get quotes from licensed gasfitters before committing.
Responsibilities for Buyers and Sellers
| Party | Key Responsibility |
|---|---|
| Seller | Disclose known defects; arrange remediation or adjust price |
| Buyer | Commission a thorough pre-purchase inspection; check for CoCs |
| Both | Seek legal advice if the issue arises mid-sale |
| Gasfitter | Inspect, remediate, and issue a Certificate of Compliance |
If you're buying, ask the seller directly whether any gas work has been done and whether a CoC exists. You can also ask a licensed gasfitter to do a gas safety inspection as part of your due diligence — this is money well spent.
When to Call a Professional
If unlicensed gas work is discovered at any point — before, during, or after a sale — do not attempt to fix it yourself. Gas work is restricted work in NZ, and only a licensed gasfitter can legally carry it out and certify it. You can verify a tradesperson's licence on the PGDB website before hiring them.
For broader safety concerns, WorkSafe NZ can provide guidance on serious gas hazards. If you smell gas or suspect an immediate danger, evacuate the property and call your gas network operator immediately.
You can find qualified, licensed gasfitters in your area right here on tradedirectory.co.nz — look for someone with current PGDB registration and experience with residential gas systems.
Sources & Further Reading
- Plumbers, Gasfitters and Drainlayers Board (PGDB) — verify licences and understand restricted work
- MBIE Building Performance — building consent requirements and the NZ Building Code
- WorkSafe NZ — gas safety and hazard reporting
- BRANZ — building research and best practice guidance
- Consumer NZ — buyer and homeowner rights
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