Agent Disclosure and Approvals/Certificates

[SarahSarah]

Hi team,

First post - chasing some info hopefully from some people that have been through this before.

I'm keen on a property in Queensland provided an offer which included,
Finance & Building/Pest & Due Diligence.

On receipt of the offer, we were provided another Building and Pest and told we could communicate with the inspector.

When communicating with the inspector, he's highlighted that there isn't any approvals for the work that has been done. This work includes, raising, building in underneath and a deck out the back.

I still like this property, but would like help on any of the following;

1) was the real estate agent supposed to disclose this on our first meetings with him
2) what searches/work can or should be done to see how safe this property is?
3) can the property be advertised as a four bedroom when one of the bedrooms isn't 'legal' but is legal height?
4) can this work ever become 'legal' and how much risk would there be?


Thanks for any assistance on this. I'm not in a jam or anything, but would like info to see if we can/should continue negotiating....

 

[Big Will]

Hi team,

First post - chasing some info hopefully from some people that have been through this before.

I'm keen on a property in Queensland provided an offer which included,
Finance & Building/Pest & Due Diligence.

On receipt of the offer, we were provided another Building and Pest and told we could communicate with the inspector.

When communicating with the inspector, he's highlighted that there isn't any approvals for the work that has been done. This work includes, raising, building in underneath and a deck out the back.

I still like this property, but would like help on any of the following;

1) was the real estate agent supposed to disclose this on our first meetings with him
2) what searches/work can or should be done to see how safe this property is?
3) can the property be advertised as a four bedroom when one of the bedrooms isn't 'legal' but is legal height?
4) can this work ever become 'legal' and how much risk would there be?


Thanks for any assistance on this. I'm not in a jam or anything, but would like info to see if we can/should continue negotiating....

Since no one has responded as yet, I will give you my understanding.

How did the inspector know the work wasn't approved? Did he go and search the council records, as my B&P guy doesn't do this!

Not sure about the laws in QLD but for VIC.

1. No, the REA might not also know the reno was not approved.
2. Get a structural report if you are concerned.
3. Yes, the REA might not know it wasn't approved and in your DD it would be discovered.
4. After 7 years I think it doesn't require a permit.

I will leave it to the QLD people to comment.

 

[danwatto]

What Big Will said, but I'll add that the search to find the approvals costs money, and your building inspector is not going to pay this out of the measly $400-$500 he's being paid.

He might just be highlighting a warning to you, their reports are always scary sounding to keep you on your toes.

Ask your solicitor to do the council search, as part of your due diligence. Fast track search in brisbane city council takes only 3 days and costs about $200.

I have just gone through the same process, as the valuer valued on the condition the work had been approved (also raising and building under).

Also ask the Solicitor to find out from the other searches - has the council issued any notices, so you will know if they were notified to rectify etc.

If it turns out bad - as long as you haven't gone unconditional yet, your solicitor can negotiate for the seller to go ahead and do the certification as a condition of sale. They need to request extension on the conditional timeframe, new settlement date, and acceptance of new conditions.

 

[RPI]

There is no need to disclose anything in QLD, they can't lie either but it is buyer beware. If you PM me the address I can run a quick search to see if planning approval was required and if there was an application made.

 

[Peterw]

There is no need to disclose anything in QLD, they can't lie either but it is buyer beware. If you PM me the address I can run a quick search to see if planning approval was required and if there was an application made.

Darryl, from my understanding, we do have to declare anything that we know, that is likely to be considered important for a buyer when making a decision. Yes if we know that works were not approved, then yes we should inform a buyer.

 

[SarahSarah]

Thanks everyone, I really appreciate it.

It is just that on questioning, the Agent agreed. This information had been provided to the inspector who just fronted the info.

RPI, I may just take you up on the offer. Something may come through tonight.

The offer was never countersigned as they didn't like the fact the building and pest period was too long....

Another question, if we were to rent this property out - is there any risk in doing so?

And what about if we chose to sell - obvious issues there.....

thanks again.

 

[Peterw]

Sarah, sorry that I missed this. No I don't believe you will have any concerns should you decide to rent the property.