All Topics / Creative Investing / Single Dwelling Covenant

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  • Profile photo of Jen1Jen1
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    @jen1
    Join Date: 2005
    Post Count: 26

    Is there any way around a single dwelling covenant? Can you convert a house into a duplex or similar?

    Profile photo of RHPlanningRHPlanning
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    @rhplanning
    Join Date: 2010
    Post Count: 46

    Covenants do not control land use in Australia – the planning system does.

    Generally covenants are made by the original subdivider because they would like a certain type of development outcome and they try to get around the planning system. This helps their marketing because they can say to prospective purchases that all future development has to be carried out in accordance with the covenant.

    In WA, there are cases where covenants have been made on properties that are inconsistent with local planning schemes. There are legal provisions that allow covenants to be modified to make them consistent with the local planning scheme provisions.

    I’m not sure about NSW, just check with the local government.

    Profile photo of Jen1Jen1
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    @jen1
    Join Date: 2005
    Post Count: 26

    Thanks RHPlanning! I will check it out.

    Profile photo of extrememortgagesextrememortgages
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    @extrememortgages
    Join Date: 2005
    Post Count: 13

    G’day Jen,

    Like RHPlanning said, the only way you can build a duplex or similar on a single block is if the planning system allows for it. You can contact your local council to find out how many dwellings can be built on the size land that you are looking at. If they say you can only build one, you can then ask if there is any discussion or plans for that to increase in the near future. It’s great if you can jump on a property that gets “REZONED” because it quickly increases its price.

    Cheers,

    Matt.

    Profile photo of christianbchristianb
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    @christianb
    Join Date: 2009
    Post Count: 386

    Tread carefully. Some covenants are as good as impossible to alter or remove.
    Additionally, a covenanted use may have been prescribed by someone who is deceased, and whose estate has no interest in helping you remove the covenant.

    Profile photo of savanna100savanna100
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    @savanna100
    Join Date: 2003
    Post Count: 11

    IN NSW covenants can sometimes be removed if the Local Environment Plan has a clause that allows for removal of covenants that may get in the way of satisfactory implementation of planning objectives.

    Ask the Council what their position is on this or look up their Local Environment Plan on the relevant Council website.

    Profile photo of RHPlanningRHPlanning
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    @rhplanning
    Join Date: 2010
    Post Count: 46
    christianb wrote:
    Tread carefully. Some covenants are as good as impossible to alter or remove.
    Additionally, a covenanted use may have been prescribed by someone who is deceased, and whose estate has no interest in helping you remove the covenant.

    That can also mean that nobody will be interested in enforcing the covenant… this approach would be only for the brave!

Viewing 7 posts - 1 through 7 (of 7 total)

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