Gooday
I'm looking at a property that is an attached dual occupancy – on one title. Land size 860sm. Property has potential to be either sub divided or strata titled- & later sold off as 2 properties. Its a brick & tile joined by 2 side by side garages.Initial inspections indicate it is separately metered & fire protections in place.Question is which is the better way to go ? Sub division or strata title.The offer: A conditional offer is being proposed. How would that be worded ?What exactly can I apply for at Council while the property is under another individuals name/title ?And what are council going to be willing to provide given it is someone else's property ?Is the offer made conditional on my making the application to council w/ the owner's consent ?Calls to Council have resulted in my being advised that if a Building Certificate has been issued in the last 2 years then an application to strata/subdivide can be made based on 'it being an exempt development application'. Again what rights do I have to apply while the property is in anothers name.Look fwd to someones expertise !Firstly make your offer conditional that the vendor will sign any development approval or other application promptly within the settlement period.
Secondly, if council/Land titles office permits, go for a sub-division, values are better (if notional) but sales are easier as each property does not require the other owner's approval for any works (ie easier to hold without body corporate issues to manage).
you should be able to find out when the DA was approved off the councils website, then get the planners to confirm when the certificate of occupancy was issued.
Thanks for your input "Scott No Mates" . U do now !
The property was probably built late 70's -early 80's so its probably going to be a written applic for records…
The offer: A conditional offer is being proposed…..
Suggested Offer:
The following offer is for the property located at:
Price offered : $
This offer is conditional on the following:
An up front non refundable $ (nominal) option payment which secures the property by way of 'an option to purchase' while the following is undertaken:
1. Satisfactory Pest Inspection
2. Building Inspection which indicates the property complies with the current building code/setbacks/ privacy codes /fire codes -for dual occupancy type housing
3. Presentation of a Current Building Certificate (if not currently avail)
4. Finance to purchasers satisfaction
5. A 4 week period to conduct the above .
6. A Zoning of Residential 2B (or similar permitting dual occupancy)
7. Conditional that the vendor will sign any development approval or other application promptly within the settlement period.Problems I foresee
…too many conditions…
…I don't want to be committed before I am fairly certain of a sub division outcome…Thoughts ?
Cheers
ian
Scott No Mates wrote:Secondly, if council/Land titles office permits, go for a sub-division, values are better (if notional) but sales are easier as each property does not require the other owner's approval for any works (ie easier to hold without body corporate issues to manage).
With respect Scott,
I think this is true as far as final values go but strata titled duplexes are very simple for body corporate dealings especially when they are either separated or minimally joined as in this case. I think that the only shared approval between owners in a strata setup would be any change to the joint garage wall. This would have to be common property but this is all – except if the driveways are shared and there are some common underground services. Individual owners could legally do whatever they want to the rest of the house as far as renovations are concerned. I found that selling one of my duplexes was not hindered by being strata titled although the agents say that you would normally expect it to be a minor negative as people prefer to have complete ownership of the property.Let us know how you go Ian.
All the best
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sogni1 wrote:The offer: A conditional offer is being proposed…..Suggested Offer:
The following offer is for the property located at:
Price offered : $
This offer is conditional on the following:
An up front non refundable $ (nominal) option payment which secures the property by way of 'an option to purchase' while the following is undertaken:
1. Satisfactory Pest Inspection
2. Building Inspection which indicates the property complies with the current building code/setbacks/ privacy codes /fire codes -for dual occupancy type housing1&2 are generally not an issue (usually undertaken within the cooling off period
sogni1 wrote:3. Presentation of a Current Building Certificate (if not currently avail)
May be attached to the sales contract but should be sighted
sogni1 wrote:4. Finance to purchasers satisfaction
5. A 4 week period to conduct the above .It may pay to get a slightly longer period for you to get DA drawings prepared
sogni1 wrote:6. A Zoning of Residential 2B (or similar permitting dual occupancy)Depending upon which state the property is located, a zoning certificate should accompany the contract of sale (in NSW you must have a recent S149 to accompany the contract). You can also confirm the zoning by viewing the map online at the council's website (if all else fails, go into the council offices and see the town planners, much easier to do face to face).
sogni1 wrote:7. Conditional that the vendor will sign any development approval or other application promptly within the settlement period.I'd push for something a little tighter (longer option period to get some certainty of the result of the DA etc depending upon how certain you are that you would purchase regardless of the outcome of the application
sogni1 wrote:Problems I foresee
…too many conditions…
…I don't want to be committed before I am fairly certain of a sub division outcome…As an incentive, you could probably add that 'the contract will become unconditional upon exercise of the option', that is, as you have already undertaken your due diligence on the property, you will not require the cooling off period (same as for purchase at auction).
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