I would appreciate some feedback on a development issue please.
I own vacant land in rural NSW (1225sqm block) in a new subdivision.Fortunately I own the block outright and it has over doubled in value in the last year.
There are covenants over the sub division by the developer, listed in the 88B instrument in the contract for sale.
Most refer to fence colours and building materials but one paragraph states “THE MAIN BUILDING SHALL NOT BE USED OR PERMITTED TO BE USED OTHER THAN AS A SINGLE PRIVATE DWELLING”.I have aproached 2 different solicitors with the same question, “CAN I BUILD 3 VILLAS,(not strata them), ON THIS BLOCK IN VIEW OF THIS COVENANT”?
1st legal advice said that if the building was approved by local council with notifications going to neighbours then legally you have done all that is necessary. Covenants are really “DEVELOPERS WISH LISTS” and would not be worth challenging by the land developer or neighbouring owners as council as the governing body has approved the villa development to this land.
2nd legal advice said you could build the villas, have them approved by council, but you open yourself to a class action by other owners/developer in a view to claim the depreciated value of their land by this villa development.
Is this all too much risk as even the solicitors have different views ???? I wanted to rent these 3 villas as they would show a +CF and have good depreciation.
CONFUSED?? [weird]cm
Sell the land to another entity you control and then do what you like as there will be no action on the third party by anyone.
Ask your solicitors that. May cost you in stamp duty, but wow, it will save you legals and any potential headaches. Just make sure there are no restrictions on the title that you should be holding in your hand right now.
Byronent
Adelaide SAByronent,
Ohhh didn’t think of that,
THANKS….
cmA solicitor once told us that covenants aren’t worth the paper they are written on. We bought a block without checking the covenant, which was brick and tile, and wanted to build a new queenslander but when we asked the developer they said NO. Ignorantly we submitted, and built a brick and tile, however our neighbour owner-built the most awful mishmash of a qlder, never checked by council, walls didn’t meet the ceiling, aaagh it was horrible to live next to. We complained to the developer, but they knew we didn’t have a leg to stand on. We learnt. It was a powerful lesson.
Developer’s wish lists, definitely. But check with the council, they may be averse to having villas in that area, and what they say goes!
Thanks Redhaven.
cmcm
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