Looking for some advice, i have a property which is my PPOR and currently have ocean views. There is a vacant block opposite my home that is currently on the market, and if the new owner was to build a 2 storey home, i may lose some of my views.
Who is able to place a restrictive covenant on a block of land, am i able to buy the land and have a height restriction placed on it if i was the owner. In addition if i was then to on sell it after 12 months, is the restrictive covenant able to be lifted by anyone else?
Appreciate your advice.
Wayne
We are in exactly this situation right now. We bought the block of land across the road from us. It was owned by the couple who live in the house next door to the block (who are also our friends). Both their block and the block we bought have totally unrestricted 180 degree bay views. Our plan is to build and move in there on our return to Aus, and keep our existing residence across the road as another I.P.
Our friends were concerned that a house built well ‘down’ the block would restrict their view to the east, so they drafted up a covenant to be attached to the title which placed restrictions on where a house could be built on the block, so their view would not be built out on our side of them.
We agreed with the terms and the deal was struck, with them offering a considerable discount to compensate for the restrictions.
As far as I know, the covenant remains in place forever, unless the person who originally drafted the covenant allows it to be lifted.
We haven’t checked on this as have no intention of onselling the block, so you will need to get the advice of a good real estate lawyer for your situation.
Cheers,
Marc.
[email protected]I have no experience with covenants at all and would advise you to approach some professionals. If you can afford it, you may be able to buy the block, put a nice house that suits you onto it and sell it again. You may kill two birds with one stone (keep the views you want and make some money at the same time).
.Hi Wayne
The only way to be absolutely sure would be to buy the block of land, build on it and live there, selling your present home if necessary.
There have been several well publicized court cases where views have been blocked despite covenants and even despite council “rules”, it all seems to end up in a very expensive and messy court case. And courts seem to be extremely reluctant to order demolition of houses that don’t comply with restrictions.
If you put a house on the block and sell it, there is nothing to stop the new owners adding a second storey on top. Or if you are able to prevent that, then there is also the possibility they may plant very tall bushy trees.
Sorry to sound negative, but it is very difficult to control the behaviour of others, particularly since good ocean views are worth a lot of money.
MargMarc,
Thanks for the reply, i have been getting conflicting stories in regards to whom can place the covenant, some say the owner and others say the developer. I am glad your own situation as turned out well. Also if you are still in LA when we come over, i will drop you a line and have that beer.
Bridgebuff
Buying thye block and building a single storey home and on selling it was one of my options, but it still didnt guarantee that new owners would not add an additional storey at a later date. Being able to place a covenant on the property that was not able to be removed was my ideal goal. I wil try to contact somebody from a professional aspect, to be on the safe side. I always appreciate the advice of the forumities, as they always give you ideas and scenarios that can be used when dealing with the professionals.
Marg
Building on the other block is not practical in this circumstance, as it has inferior views than myself even with a 2 storey home built on it. Your dead right about good ocean views worth a lot of money, it is that value in the equity that it brings to my PPOR that i am trying to protect.
I will surely find out for sure and will let you all know the outcome. Appreciate the advice, have a good new year!!
Regards
Wayne
I spoke to a professional in Perth, who informed me that a restrictive covenant is a fairly simple process providing you own the land.
I would have to purchase the land first, then they could place just about anything on the restrictive covenant for a total cost of approximately $1500. Apparently his compant does many of them in the rich suburbs, and covenants can include restrictions on types of trees that can be planted, number of stories, pitch of roof, satellite dishes, virtually anything.
You would want to keep it fairly simple, or otherwise to may have a hard time selling it with may restriction.
The restrictive covenant will show that it benefits the particulars of your title (PPOR) and burdens the title which the covenant has been placed on.
The only person that could remove the covenant is the owner of the land that the covenant benefits., not necessarily the person who placed the covenant.
In effect you could buy the land between the neighbours to minimise the costs, and the covenant would benefit there land also. This would add some added value if they were to sell, knowing that the views could not be built out.
Regards
Wayne
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