Granny Flat Legalities

[Erin]

My neighbour is considering selling her house than she has lived in for 40 years and a couple of my family members are considering purchasing it as an IP however we are unsure of the legalities concerning the seperate granny flat.

The old double garage was converted to a "granny flat" 21 years ago. My neighbour said that the granny flat was inspected by council at the time (after the old neighbour dobbed her in) and a letter was issued by council advising her that the structure had been approved however was for use of family members only. She no longer has this letter and thinks that the council wouldn't have any records of it as her husband (who is now dead) knew the mayor at the time and she has suspicions that it was done as a favour rather than through the books.

What are the legalities of this for her when selling and for the prospective purchaser? Could my neighbour be left open to legal action because the granny flat was not officially approved? When selling can she actually advertise that there is a granny flat? If my family purchased this could we be open to legal action too?

Thanks in advance

 

[Perp]

We could all speculate but it would be just that - speculation.

I suggest that you ring Council and tell them that you are considering purchasing the property and wondered if the granny flat was legal as a "habitable room". You can legitimately have almost any structure on your property provided it's not for sleeping in, which is one reason why those "backyard pavilions" have become so popular. But if you want to sleep in it, it needs to be "habitable", and the whole ballgame changes. I suspect that it's probably considered a "rumpus" or something like that, rather than habitable space. But your Council will be able to tell you definitively.

Good luck!

 

[eKwatee]

The first thing your neighbour should do is order a council search or talk to the council to see if it shows any approval for the granny flat. If it is found not to be approved when she markets the property for sale she should not advertise that room as a granny flat on the plan, brochures or internet. As ozperp says advertise as a Granny Flat or I would advertise as a store with bathroom/plumbing/kitchenette. thirdly there is an insurance called first title http://www.firsttitle.com.au/ for a one of premium will insure known and none known risks for unapproved improvements should the council ask to remove the unapproved item, they will cover the deconstruction and reconstruction of any improvement.