All Topics / General Property / Real Estate Agent problem
New to all this so I need some help. I have just “purchased” our new home which my wife and I were to knock down and build 2 duplexes in the Bankstown Council area. The block is a corner block with 678sqm but only a 13.715m frontage. We have only just exchanged contracts (paid 10% deposit) last week on Friday and we have the necessary finance to complete the purchase.
We saw a house that we thought that we could build on and I then called the agent and asked him about what width the house was on and he advised me that it was 15.235m wide by 46.33m length – this is within the guidelines for DA approval (minimun 500sqm and 15m width). Being suitable we placed a bid for the house I went to council and showed the land dimensions etc to the duplex inspector and I asked him if we could build a duplex on this block. The inspector did not want to commit and just said that once we put in plans they will look at it then. At that stage all we did was to put an offer for the house.
I started getting concerned about the width of the block and I telephoned the agent and each time he reassured me that the width was more than 15m wide. He even got me to look at another house “which is very similiar to ours and they had built a duplex on theirs so then the council would not be able to knock us back”. On about 4 – 6 occassions I spoke to the agent and each time he advised me that the block width is the required width. I must add that I add that from the very first conversation that I had with the agent I told him that the house was going to be knocked down and a duplex will be built.
We have now had an architect draw some simple plans and I went to council and asked about the possiblity of building a duplex and they have now said that we cannot because the width is not more than 15m wide!
I have gone to the principal of the real estate agency and I have told of the problem and now he is going to speak to the agent (his day off today) and advise me what will happen.
Has anyone had any experiences like this that they would like to share.
Regards
Jas
Caveat Emtpor = Buyer Beware
Why did you just not look at the contract which should have been provided to you by law?
Did the agent ever write down that the property had a frontage greater than 15m? If not, good luck recovering anyhing from the agent.
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Essential LinksUnfortunately you can’t really go off what the real estate agent says because they are not duty bound to know the exact measurements of the place. If you were asking a surveyor who was looking after the house and they gave you a certificate of inspection that said the frontage was 15m you could do something.
Part of due dilligence is to do a land and title search. You need to do this to check for easements, encumberances, land dimensions, sewage and water connection etc… It is also important to check for any caveats and make sure the house has been built on a permit (otherwise council can make you knock it down). Very important to do these checks, especially if you intend to redevelop. Though I’d have thought the archtect would done a property search to do up his plans…
Hi Jasmind,
The council is not going to commit to anything without plans being submitted.
But what you can do is ask the bulider to go to the property and check to see if the house can be build on to the land. (To win your business they often do that for free)The architect can also do minor mods to the plans to suit the land size and shape as well.
J
No suggestions to help this time – but I would suggest you invest in a scanner/copier/printer and fax machine in one unit. I saw them for sale at the Post office for only $140. This way if an agent makes a statement to you you can have evidence faxed to you immediately.
Also, if a council allowed something in the past, that is no guarantee that they will allow again. The agent may have been right about the other building, but councils do not always replicate their decisions. There was a case in a street I was looking into and discovered that one developer obtained a special exemption to build the front of three units closer to the front boundary line than the rules state.
When you make offers to properties you should also see if you can make it subject to council approval of your plans. If you cannot get the deal over the line then offer less to cover your risk.
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