Hi all,
First post, however have been reading the forums for the last 6 months or so.
I have a question which I hope some of the more experienced investors may be able to help with.
I'm currently looking into purchasing a Gold Coast duplex that also has a granny flat on the property. Apparently the granny flat has not been council approved and it would seem that the council are still not aware of the existence of the granny flat, even after roughly 6-7 years. Both the duplex and the granny flat are currently tenanted.
After I made the offer, the vendor's solicitor contacted the agent and informed him that he must make me aware of this potential issue with the granny flat.
I realize that it could be quite a complex issue and if I proceed further I will definitely get legal advice, however I just want to test the waters on this forum prior to outlaying solicitors fees.
My questions are as such:
1. Is the issue of granny flat building without council approval quite common? Either in QLD, the Gold Coast or Australia wide?
2. As far as insurance goes, because the granny flat is not council approved, does this mean that it would be unable to be insured, or would it be insured as part of the duplex?
3. What would be the worst case scenario if I was to buy the property and the council discovered the granny flat? Get plans drawn up and submitted? Tear it down?
4. If I was to go ahead and buy the property, would the bank possibly reconsider financing it due to the fact it has a residence that has not been council approved?
5. What would be an estimate of the total cost for gaining council approval? Could I use this cost to prompt the vendor to lower the asking price?
6. Are there any hidden issue which I'm missing?
I'm just trying to get a feel for whether or not its even worth seeking legal counsel or simply backing out early.
Any help or info would be greatly appreciated.
Regards,
Jesse
First post, however have been reading the forums for the last 6 months or so.
I have a question which I hope some of the more experienced investors may be able to help with.
I'm currently looking into purchasing a Gold Coast duplex that also has a granny flat on the property. Apparently the granny flat has not been council approved and it would seem that the council are still not aware of the existence of the granny flat, even after roughly 6-7 years. Both the duplex and the granny flat are currently tenanted.
After I made the offer, the vendor's solicitor contacted the agent and informed him that he must make me aware of this potential issue with the granny flat.
I realize that it could be quite a complex issue and if I proceed further I will definitely get legal advice, however I just want to test the waters on this forum prior to outlaying solicitors fees.
My questions are as such:
1. Is the issue of granny flat building without council approval quite common? Either in QLD, the Gold Coast or Australia wide?
2. As far as insurance goes, because the granny flat is not council approved, does this mean that it would be unable to be insured, or would it be insured as part of the duplex?
3. What would be the worst case scenario if I was to buy the property and the council discovered the granny flat? Get plans drawn up and submitted? Tear it down?
4. If I was to go ahead and buy the property, would the bank possibly reconsider financing it due to the fact it has a residence that has not been council approved?
5. What would be an estimate of the total cost for gaining council approval? Could I use this cost to prompt the vendor to lower the asking price?
6. Are there any hidden issue which I'm missing?
I'm just trying to get a feel for whether or not its even worth seeking legal counsel or simply backing out early.
Any help or info would be greatly appreciated.
Regards,
Jesse
