G'day All…
My wife and I live down in Tassie and are currently going through the process of having all our plans finalised by council for a second dwelling on our block. 3 weeks ago I received a call from the original developers of the land that we bought back in 2009 saying that I hadn't passed the idea through him, apparently a requirement of the covenant (which we can't find on our copy of the title). He continually didn't return phone calls or emails and was doing his best to avoid us when we asked him what we had to do. Then today I received an email from him telling me it would cost us $17,700 to buy into the development costs of the original 20 acre block, as he now considers us developers. There are already 4-5 multiple dwelling blocks in the subdivision and I can't imagine anyone else paying these costs. It just seems a ridiculous price to pay. I'm in the position now of not knowing who to speak to in regards to this problem. Any help would be much appreciated. Cheers
tugger
Um… you have bought the block. It is no longer his. It is yours. If there is no covenant, then that is that. If council says yes then you should be fine. In fact I'd think council will not be able to approve it if there is a covenant. If you get stuck or are worried, chat to yor solicitor. Then you will know exactly where you stand, and will be able to thank him for his keen interest in your development and decline the offer to give him a cash donation.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I'd definitely talk to your solicitor. It doesn't sound right to me, but you're better off being sure.
Thanks for your help… Got my hands on the covenant and this is how it goes roughly;
''Not within 10 years of the date of the acceptance of this plan should any units/flats be built on the said Lot otherwise than in accordance with plans and specifications to be submitted to and approved by xxxxxx investments company before the erection of any such building is commenced''.
Now my understanding of this is that they can agree or disagree to us building, but there is nowhere where it says anything about financial compensation to them. Any thoughts? Cheers
tugger
Thoughts? I think if you don't pay, they'll simply disagree.
I guess if I was in your shoes, I'd be trying to get into contact with one of the people who built the "already 4-5 multiple dwelling blocks in the subdivision" and talk to them about how they went about things.
Yeah that was my feeling too…no pay, no build. We asked the developer about the other multiple dwellings and one was his, the other his engineers, two of the others are his mates. He said they didn't pay because of a prior arrangement he had with them… Which sounds pathetic too…. Not sure if I can pull out any winners here at this stage
Doesn't sound likely. That said, there's always negotiation. Remember, if you don't proceed, he doesn't get anything at all, so maybe you can negotiate down to a consideration that still allows your project to be profitable. Failing that, I guess you can 'land bank' until the 10 years are up. Pity you're already well under way on getting plans approved. I guess you can always still at least get a solicitor to have a look and see if there's any outs for you.
Alrighty let's get particular about this. It says you can't build units or flats. Doesn't rule out houses or townhouses, or subdivision of land…
It also doesn't rule out getting the land subdivided, getting council permits for the build, and selling the land with the permit. ie don't both building.
Either way talk to your solicitor.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Yeah good point about the townhouse… I consider this a townhouse as it is stand alone, has a small yard, and has 3 bedrooms and 2 bathrooms.. they are only roughly 105sqm but are not double storey…i don 't think… There are 3 steps up from the bottom level to the upper level… The more I think about this the more it annoys me and makes me think its all wrong. Appreciate everyones comments and ideas. Cheers
tugger
I’d be pulling the covenant apart – either a town planner/lawyer/surveyor to advise on the type of development which would comply with the LEP & get around the covenant.
How many years until the covenant expires? Your DA should run for 5 years.
Does it run from the date of purchase or date of subdivision?
JacM wrote:Alrighty let's get particular about this. It says you can't build units or flats. Doesn't rule out houses or townhouses, or subdivision of land…It also doesn't rule out getting the land subdivided, getting council permits for the build, and selling the land with the permit. ie don't both building.
Either way talk to your solicitor.
i meant to say "ie don't BOTHER building"
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
G'day Scott…
Yeah it was 10 years from the signing of the subdivision date, which took place in 2007…which means we would have to wait 6 years which would be fine as long as council requirements didn't alter too much. My wife's sister is a lawyer and she is going to go through it tomorrow but i'm sure the developer is more financially secure and willing to take things further to benefit themselves. I would have almost considered a fee of around $5000, but the fact it was close to $18,000 just makes it so wrong.tugger
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