Hi all,
before advising me to seek legal advise I am but the more advise one can get the better.Basically have put an offer in on a rural property subject to the usual conditions. Just received the building report and whilst the property is good the author believes the house may not have a certificate of completion/building approval from the council? (property was owner built).
The house is currently tenanted and I wanted to know of any possible implications for me if I proceed. The council is not likely to order demolishion of the property as it is sound. Would I be liable if I rented it out and it or part of it collapsed causing injury to a tenant.
Any advice appreciated.
Thanks
Hi WAF,
I would ask these questions myself:
Will your insurance cover the building – does the fineprint require that the building have all legal permits and council approvals – doesn’t matter how sound it is, if something goes wrong the insurer could point you to the door.
What about public liability with tenants in place? another insurance question to check out.
Will council inspect the property and issue a compliance certificate retrospectively? Can you find out and then chase the vendor to have this done prior to you agreeing to go unconditional. If they can but won’t, then consider offering a reduced purchase figure to account for the costs you will incur getting the approval, and also some big extra for the risk you take buying it.
CDCastleDreamer
CD,
thanks I have telephone appointment with solicitor this afternoon so will ask those questions.Cheers
Hi WAF,
If you want the property I would be surprised if you are locked in as the building is ‘technically illegal.’
As such the vendor may be willing to renogiate and then you should include one of your ‘new’ conditions subject to shire providing the necessary building approval at vendors expense?
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
good point, we had a deal that on getting pest report, tree outside had termites and needed dosing asap. Full barrier was never done and it was 14 years old and ready to be a target if nothing done. Cost was at vendors expense $1320 straight off the already agreed purchse price.
So, with your not approved building you can
1)go ahead as is. This is an option if pressure from other buyers on property.
2) add nto contract as previously suggested all approvals prior to settlement required.
or 3) In some cases where the building has been there for more than 10 years the council will happily retro certify for a couple of hundred $$.No biggie is it? Buy houses, have fun!
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Hi all,
thanks for your replys. Just to update solicitor said as some of you did as well. Will simply draft a letter to Vendor and agent saying that the sale of the property is now subject to the building meeting all required regulations. I do still want the property so will see how much work is required to bring it up to the required standard if any.Cheers
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