Hi Anyone, Someone…
Regarding: building repairs/renovations & selling/buying
First time really stuck! I found a rural property/home in QLD that the owner built without council approval. It is 6-8years old (owner kept extending). The local council will not answer any questions unless I apply for an application to see if its approved… which I know by the owner it is not. And the real estate agency is not very forthcoming in what is legal. After 3 weeks they still do not know. The owner has fused a defect list. ?? Can you build a dwelling at all without council approval??
When making repairs, renovations, building… who is legally responsible? I have been informed that the owner (unless a registered trades person) is responsible for seven years after selling. Builder-owners are responsible if the house is over $12,000? (yes that figure is right). However, if the house is under $12,000 (Figure from BSA) then is the builder/owner responsible? And without any permits?
I have looked everywhere… asked everyone… but can only find information pertaining to Victoria and even that is not clear. Even our local solicitor is a little unsure… which leaves us a little concerned.
Unfortunately, the property is the right price range and for the right reasons for us. It is just that little nagging feeling that we will be penalized for the owner/builders mistake of not getting a building inspector to have a look, which he refuses. Is that even legal?
Thanks in advanced to anyone who can help.
JenI'm from Vic. and I'm pretty sure in most parts if not all of Australia you need permits to build an actual dwelling or change anything structural to an existing dwelling, and to get permits you need council approval. If he refuses to have a building inspector look at it, alarm bells should be ringing. If the council is aware of this property I don't understand why they haven't already dealt with it. This shouldn't happen, council approvals, permits and the building inspectors are there to safe guard purchasers from buying houses that have been "whacked up" by weekend hammer holders. If your concerned with the workmanship of the house I would ask the owner as a condition of sale a building inspector must view the property and give you a report. If you do buy this place and in the future want to sell you may find it hard because of this very problem so why buy this owners problem? Look for as much information as possible, if you find a solution you can use this to your advantage by negotiating a much lower price because of the approval problem. Once the problem is fixed hopefully you could sell for a tidy profit. But that's another option. At the end of the day do what the local council needs you to, because they have the power to implement the law and 9 times out of 10 they have the last word.
HI Vic, Thanks. I finally found out the legal truth. Yes, it is illegal to constructure any dwelling or fixed structure without council approval after 1974 anywhere is Australia. (Due to Cyclone Tracey and the new Building Commission). However, nearly 20% of building extensions, granny flats,sheds etc are not approved by local council!! Meaning. Any insurance agent can refuse a claim and owner is responsible for personal liability. Cliche – owner beware.
In this situation, the property is in a high growth rate hence the greed factor. The owner is asking more than 100k over the land valuation. The house is a liability and not worth more than ($12,000) – not worth a cent as it will probably get ripped down. You even need local council permit to demolish a house. It gets better.
Due to the owner, refusing a defect list and not having council approval. The owner is liable and the local council are more than likely going to prosecute him. AS this is not the only property where he has built his own thing. An investigation has commenced. He may be fined anywhere between $10, 000 – $130,000 for each property!!!!!
There is more. Due to creed, the owner decided to go to auction!! Officially, making himself liable for getting sued. No way would I buy under auction for this property. What makes this situation worse. Is the real estate agent did not meet their obligations of informing their client or reporting such an "gross illegal structure". The local council have reported them to REIQ (Real Estate Institute Queensland) with the real possibly of losing their residential licencee!!!
Guess karma has a way getting you in the end. Whats funny, is that I probably would have brought the property – approved or not, has it was not the house that interested me but the land. The house was purely an advantage until I put a real council approved house there. It was just the nagging feeling…
Moral… buyer beware! Cheers JenIf it's the land you're after and not the house are you going to put in an offer now based only on land value (presumably with clauses that the council lets you tear down and rebuild an approved dwelling)? Sounds like this guy might need some money to cover his legal bills soon. That whole thing sounds like a big mess. I'm laughing as i type this
Whats funnier… looks like he can not sell until the "dangerous structure" on his property as been made safe. Apparentally the local builder inspector recommended standing out side in a cyclone as it would be safer.
Still bewildered by the stupidity of it all. Hoping he will still sell the land – at a discount offer of course..
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