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  • Profile photo of jhighlo2001jhighlo2001
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    @jhighlo2001
    Join Date: 2004
    Post Count: 12

    Michael, thanks for taking your time in writing such a comprehensive reply. There were a few things that I don’t undertands.

    1. What does it mean if a purchase is subject to a title being issues? (what is a title?)

    2. What does it mean if an appartment is strata titled? (I don’t really understand the meaning of strata)

    My inspector has just told me that “All strata titled apartments in Victoria include the thickness of the external walls and half the thickness of shared walls. I agree that this is a bit deceptive”

    I guess as a buyer used to UK flat messurements I did not expect 15% of the flat to be within and including the walls.

    Thanks again

    Profile photo of jhighlo2001jhighlo2001
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    @jhighlo2001
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    Update for all you lovely Australians out there who are being so helpful.

    This may be very useful to others buying OTP.

    1. There was no written figure for the appartment size in the contract. There was a plan of the appartment with some measurements (I later calculated this to be 103m). There was also an outline plan of the flat with some measurements (I think this is what they call the strata plan). I later calculated this to be 120m). As I was sold the flat at a seminar, I did not have time to do these (not simple) calculations and therefore relied on the sales laminate that they used which stated in large bold type that the total size of the appartment was 120m).

    2. Central Equity will still not give explain the method used to calculate the flat and explain the discrepancy I have regarding the sales literature. They will only quote the total size and say it is irrelevant at this late stage as completion is immenent. This is dispite many letter from me and my soliciter.

    3. I sent a Archicentre in today to measure the flat and find out where the discrepancies lie. This was their response (they did not provide me with measurements):

    Apartment area

    The legal area of the apartment is as shown on the apartment title which includes the plan of subdivision. You should have a copy of the full title as part of the contract of sale.

    The Subdivision Act 1988 outlines the official system of measurement of any strata titled apartment:

    Boundaries
    Unless the plan otherwise provides, if the whole or part of a boundary of a lot with another lot or with common property on a strata or cluster plan or a strata or cluster redevelopment plan lies along or within a structure that is a wall, fence, floor or ceiling, the boundary is the median of the structure.

    This legalese translates into the actual legal area of your property shown on the title includes:

    the full thickness of the exterior walls of the building
    the full thickness of the internal partition walls within the apartment
    half the thickness of the walls that adjoin other apartments
    half the thickness of the walls that adjoin the common area.

    The thickness of this additional structural area adds up to a considerable proportion of the apartment. The exterior walls are of the order of 300mm thick. The interior walls are 110mm thick. This is where the discrepancy in building area lies.

    In a standard house the area of the house includes the area in the external & internal walls. This is similar except only half of the shared walls are included.

    An as-built survey has been undertaken by a licensed surveyor. I have not seen a copy of that survey. The surveyor has determined that the actual area of the apartment using this method of measurement is 101.00m2 rather than 98.2m2 as per the original laminate. This discrepancy of 2.8m2 can be explained by a different wall thickness being used in the construction than had been presumed prior to construction. You have ended up with 2.8m2 of additional area.

    The site measurement of a number of the dimensions has confirmed that they are generally slightly larger in the as-built apartment than as was shown on the initial laminate.”

    4. I guess this means that the external walls were included in the total appartment size, which is not what one would assume (well, not here in the UK) when a total flat size is quoted.

    5. I have reported this to the ACC, that say Central Equity are in breach of Article 52, and 53A and they have noted this on their database (but I think they only take action if there are loads of complaints)

    6. As the transaction occured in Westminster (a UK London borough) – I have reported this to Westminster trading standards who might prosecute Central Equity) – I am awaiting a response.

    There have been a very similar case which a friend of mine was involved in:

    http://www.towerhamlets.gov.uk/templates/news/detail.cfm?newsid=2733

    7. I am still deciding whether to go ahead with legal action from Aus soliciters (but will keep you updated)

    8. It is interesting to note, that as a consumer, I feel very misled about the flat size (I have also confurred with collegues who seem to agree with me).

    It is also interesting that my soliciter, the bank valuers, another large Australian firm of soliciters and another surveryor – did not seem to think there was a discrepancy or it was a problem.

    However the ACC, Office of UK fair trading, Trading Standards, and friends who have purchased OTP can feel that there is a problem.

    Hope this helps [blink]

    Profile photo of jhighlo2001jhighlo2001
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    @jhighlo2001
    Join Date: 2004
    Post Count: 12

    .. thanks for the advice Michael. I know the CE flat that I have exchanged on is a complete con (see all my other posts … misdescribed to the hilt).

    I’m interested in something you mentioned – i.e a lawyer that specialises in OTP – do you know of any? As I have said in other posts, I did not have a laywer look at the contract pre exchange (as I was pressurised at a CE seminar to sign then and there) – but the lawyer that I’m using for completion (recommeded by CE) does not seem interested that the flat is much smaller than described — or even looking at the contract!

    Do you have any advise on how to contact any purchers of CE appartments?

    Thanks

    Profile photo of jhighlo2001jhighlo2001
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    @jhighlo2001
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    OK, this is getting really spooky… I’ll just carry on about the flat size thing (no update on the legal side yet).

    I emailed CE and asked them how they calculated the flat size (remember they used a plan at the sale that had total appartment size and total balcony size)… at a later date when I did the calcs on the plan the sizes came out 20% smaller!

    When I emailed CE to ask how they calculated the measurements they responsed by saying “The apartments/title have been professionally surveyed by a qualified surveyor. The areas are calculated in accordance with the Property Council of Australia method of measurement. “
    and were then really rude. The email was signed by a director. They still would not clarify this!

    I then contacted the propery council of Australia who wrote a lovely reply and said that there are no guidlines of measurement for a residential development! (so CE were lying)

    I then contacted my soliciter who was dealing with the sale. She could not see that there was a problem and then warned me about what would happen if I did not complete.

    I then emailed the lawyer (who may be brining a case for me agaist CE) and he did not think this was a major point.

    I received a valuation back from one of the banks and they put the flat size exactly as the measurements that CE had told them (so I guess they got the figures direct from CE and did not measure it).

    I’ve had 4 sets of friends check the plan and they all said its about 20% less.

    Now I don’t know if it’s just me, but I think it’s a pretty big issue that the flat seems 20%smaller and no one seems to care?

    I would really appreciate some help / advice.

    Profile photo of jhighlo2001jhighlo2001
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    @jhighlo2001
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    I will definately keep you all updated… but its in the hands of the soliciters now (and I can tell you that CE are getting really nasty and obstructive). If anyone is in the same situ, then PM me and I can update you – but I’ve been told to keep quite [fear] until the case has gone throught.

    Profile photo of jhighlo2001jhighlo2001
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    @jhighlo2001
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    thanks for all your advise. I’m now talking to a legal firm (and also requested the sizes from CE and their method of calculation)

    Will let you know the outcome [comp]

    Profile photo of jhighlo2001jhighlo2001
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    @jhighlo2001
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    Thanks again,

    Anyway I contact my soliciter about my situation. eg CE lying to me that I could pull out of the sale, and the “possible” overvaluation, and all the other misinformation and this was the response.

    “1. Any representation made to you by an agent of Central Equity as to the value of the property at the time you signed the Contract of Sale (or indeed after you have signed the Contract of Sale) does not unfortunately give you any action against the agent for the subsequent decrease in the value of the property. In this regard, please refer to Special Condition 1.8 of the Contract of Sale which basically states that you cannot rely on ‘any promise, representation, warranty or undertaking’ given by any other (ie. the selling agent) prior to the signing of the Contract.”

    .. so basically CE can say what they like to sell you the flat, then when they’re dangling the 100+ page contract under your nose and saying sign it, sign it you’re expected to read all these clauses
    (which would have taken me a month and probably then I would not have understood it all). This surely can’t be legal.

    Then I wondered why my soliciter was not being helpful. Then it dawned on me that the were recommended by Central Equity!

    I guess its just hard to see you life saving go down the drain from this scam – and there is nothing you can do about it!

    Found this interesting article about property scams to depress me even more: (CE get a few mentions) http://www.abc.net.au/4corners/content/2003/20030421_tall_stories/int_ryder.htm

    Then the second part of the soliciters email made sense (when I mentioned I was having trouble getting finance – due to the drop in valuation)

    “The property market in Melbourne has certainly flattened and it could be that the lenders you have approached are being over cautious in regards to their valuation. Our Principal Solicitor, ********, suggests that you try and get another valuation done by a different valuer, or alternatively consider a less conservative lender. We can provide the contact details of alternative mortgage brokers if you so require.”

    Encouraging me to go with a company that will comply with the overvaluations Ahhhhh!

    It’s like the whole of Melbourne is in this conspiracy!

    Is this all Legal?

    Profile photo of jhighlo2001jhighlo2001
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    @jhighlo2001
    Join Date: 2004
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    Unfortunately, I got taken in by Central Equity and am having to complete on a flat in Melbourne Tower this month!

    When I signed the contract 2 years ago at a property expo in London, I was told (by the MD) that if my circumstances were different in 2 yrs – I could as a last resort sell back the contract.

    My circumstances have changed. The flat 2 years later has been valued AT 15% LESS than the purcase price. The banks are also not lending 80% on the CE development! So 20% down in cash.

    I did mention pulling out (as verbally mentioned at sale) – but got a letter within days from their lawyers.

    It is also interesting that I was flagged by other disucssion groups that CE properties were being undervalued – CE persistantly denied this – which was an outright lie – giving me no time to prepare for a 15% shortfall 1 month before completion.

    I would love to hear from anyone in the same situation! or anyone who thinks there is a legit way of pulling out.

    Thanks

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