Easements and Unapproved Extensions in VIC

Discussion in 'Legal Issues' started by GREC, 30th Jan, 2014.

  1. GREC

    GREC Member

    Joined:
    30th Jan, 2014
    Messages:
    1
    Location:
    Melbourne, VIC
    Hi All,

    Looking to make an offer on my first property (intent is to live in for 2-3 years then utilise it as an IP) and upon review of the Section 32, I found that there is an drainage easement along the back fence.

    The bad news is the current owners have built a non-council approved extension comprising of an Entertainment Room and a small deck with the roof line extended over the drainage easement (easement is from rear fence line to 3m within the property boundary).
    The REA notified me that the extension was done 7 years ago and as a result no details of the extension works are provided within the Section 32.

    If I was to proceed with making an offer on this property and it being accepted, am I correct in assuming the following liabilities I would bare:

    - Risk of ownership of a non BCA approved structure
    - Risk of council involvement (Can they ask for it to be demolished if the structure has been there for 7 years? I have no way to prove this)
    - Risk of modification to the authority drainage as this would impact the existing extension

    My understanding is that I can offset these risks with Title Insurance.

    How would I go about rectifying an existing extension to bring it to council/BCA compliance? Is this even necessary? Or should I just leave it as it is and hope the drainage asset below the extension will not require modification/repair?

    Any assistance is greatly appreciated.

    Cheers :)
     
    Last edited: 30th Jan, 2014
  2. Paul@PFI

    Paul@PFI Tax, SMSF & Planning

    Joined:
    2nd Jul, 2013
    Messages:
    2,778
    Location:
    Sydney
    Council can request demolition but if its compliant may require certification. This can be problematic for footings, slabs and plumbing.

    Q : What may a buyer think when its your turn to sell ??
     
  3. bashworth

    bashworth Member

    Joined:
    3rd Jan, 2011
    Messages:
    208
    Media:
    1
    Location:
    Footscray, Victoria
    I would be looking elsewhere.

    Why risk future problems