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Thread: Me thinks something stinks, some legal advice please.

  1. #1
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    Me thinks something stinks, some legal advice please.

    I have some young relos in NSW who are in the process of buying there fist home BUT after having the home inspected, the guy who did the job said that an owning fixed to the house had been approved to be built but had not had a council inspection done so there was no final approval of the structure.

    So far, not to bad BUT today the relo’s solicitor, someone the real estate agent had arranged, asked the relos to come into their office and sign a stat dec saying that the owning on the house matched the plans, NOT SO GOOD.

    I would have thought this was up to the solicitor to sort out with the current owner and the council.

    Can anyone tell me if this is the norm or should the relos be doing something to protect themselves.

    Cheers.

  2. #2
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    If there is no final inspection, I suspect the council could ask for it to be removed or rebuilt to their satisfaction.

    Phoenix is in the legal business - he'd know more than me.

    Steinzy is in the real estate game, he might be able to help.

    Unless your rellies are qualified builders or architects, how can they sign a stat dec to say the awning matched the plans?

    Sounds suss to me.

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    Time to negotiate the price waaaay down.

    I'm in Leichhardt in Sydney, and last time I looked into a similar situation with my council they said it could be either $450 for an application, inspection, etc. to get it approved, or if totally dodgy they can order you to knock it down.

    On a smaller scale a mate bought a house with a deck that wasn't approved by council, vendor dropped the price by a bunch and demolished the deck.

    You can apply to the council to gain access to all documents that they hold on a particular property, this will confirm if there was development approval, or a phone call to the council should do it.

    Worst comes to worst they have to demolish the awning. Get bucks off to cover the cost of demolishing, going through council, rebuilding.

    Get another lawyer and start some trouble with agent and lawyer. If they're employing the lawyer he or she should be representing their interests not vendor or agent.

    Of course, I'm neither a lawyer, an agent, or a council building guy, so I really haven't the foggiest.

    Good luck with it.

    Cheers
    Simon

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    sounds to me like the agent and the lawyer are best buddies.......

    get an independent lawyer to go through the paperwork befre you get burnt......

  5. #5
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    I dont know about NSW but in Vic you dont need council approval or permits if the addition is under 5k and within the council guidelines , ie distance from boundary etc.
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    In NSW, you need council approval to put up a flagpole or even a shelter for the car - and I mean one of those cheap polytarp shelters.

    No approval and you are liable for a $110,000 fine.!

    Ron
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  7. #7
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    from our last dealings with buying a house (both our houses are in queensland)

    The house should be clear of all titles and encumberments prior to sale unless advertised and sold as being otherwise.

    If they have listed the house as having the awning, it should have all its permits and certifications already.

    If the house has been listed as "needs maintenance or needs renovations" then the sellers do have a legal out...

    but it does sound sus to me since their lawyers have the plans and seem to think they match up get your legal team to check it out compare both and show both sets of plans to you.
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  8. #8
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    Part of the settlement process is usually to have additions checked by the local council building inspector and either have any unspecified additions added to the plan, upgrades/repaiirs reccomended before re-inspection or demolition/removal order. It all depends on local council regulations etc.
    We sold our house in Kambalda 9 months ago, inspector came around and we had gone slightly further with a carport extension (built carport, patio, verandah) about 3 metres to the shed. As was up to scratch was no issue and probablly more lenient than nut cracker city inspectors.
    Do not sign anything to take responsibility if buying. It is up to the owner / settlement agent to make sure everything is approved and on the plan. Check with local council as to the rules in your area.
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  9. #9
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    Quote Originally Posted by drivesafe View Post
    I have some young relos in NSW who are in the process of buying there fist home BUT after having the home inspected, the guy who did the job said that an owning fixed to the house had been approved to be built but had not had a council inspection done so there was no final approval of the structure.

    So far, not to bad BUT today the relo’s solicitor, someone the real estate agent had arranged, asked the relos to come into their office and sign a stat dec saying that the owning on the house matched the plans, NOT SO GOOD.

    I would have thought this was up to the solicitor to sort out with the current owner and the council.

    Can anyone tell me if this is the norm or should the relos be doing something to protect themselves.

    Cheers.
    tell them to talk to the local building inspector from the shire the house is in, after all, he has the final say as to what is compliant with the regs and makes the approval on any structures within that region.
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  10. #10
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    Been there done that. I usually ask for copies of approved plans and completion certificates before settlement. Problem these days is that the council does not do a final inspection. They have delegated this to private certifiers.

    A good building inspector will usually advise if structures are built to appropriate standards\rules. In this case, did they have in the contract that the sale was dependent on the findings of a building inspector's report?

    Even with the house I have now there is a carport that does not comply with regs. I picked up on this on the first inspection, the building inspector advised the same. I asked the owner through my solicitor for a copy of the approved plans and final inspection report. As well as this I went directly to the council and purchased plans and info from them on what has been approved for the property. All I got from the owner was plans drawn by a draftsman and approved by a certifier. No final inspection was done.

    Come settlement day I did not have a final report so I asked my solicitor for advice. He pointed out that I could pull out of the sale but asked was it worth it? To rectify the building work would cost about $4,000 I guessed. He suggested that I go ahead with the sale and if the council ever picked up the problem then either demolish the carport or build it properly. In five years the property has doubled in value.

    I pulled out on a previous sale due to a negative building inspector's report and that cost me around $2,000 all up to get out of the contract (reports and legal fees). To rectify issues found would have cost 10's of thousands if they could be done at all.

    Options could be to weigh up what is best, pull out of the sale because of the awning and chuck away a couple of grand, or go ahead with the sale and rectify the awning as and when needed. Maybe ask the owner for a reduced price but unless the solicitor can scare them they may not.

    Hope this helps as it is my experience with such issues. The council I referred to is Brisbane City Council, other councils may have different rules.
    Last edited by barryj; 23rd June 2007 at 08:47 AM.

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