Help! Undisclosed sewer main - can't build!

M

markxr6t

Hi all

What a nightmare! In June last year I bought a 390 sqm block and only 10m wide, in Rosebud Victoria (in the "Avenues" for those that know) with the intention of building an IP.

Settlement went smoothly, no disclosure in Section 32 Vendor's Statement and no easements or covenants on the title.

Now, my builder has just told me that there is a main sewer line running 1.7m in from the rear boundary and 1m in along the length of the RHS boundary and a water main at the front left of the block. None have easements! SE Water has now confirmed this. The builder has declared that they can't build on the block and they doubt that any other project home builder could either.

I feel angry, upset, disappointed and concerned that I've borrowed $170k and paying interest on a block I can't build on! I feel I need to take legal action (against the vendor? my conveyancer? SE Water for their crappy record keeping? I don't know.) The builder feels I have a good case for compensation and has referred me to their lawyers.

All I want is a block I can build an affordable house on or my money + interest + expenses back but I'm sure no-one will agree to that without a battle.

Of course if I sell the block, I must disclose the water assets - unlike the previous vendors.

1. Has anyone experienced a similar situation or have advice for the legal process I should follow?

2. Can anyone recommend an affordable custom builder in or around the Mornington Peninsula area?

Any advice, comments or suggestions welcome!

Thanks

Mark
 
Mark, I've been through a very similar drama. Am I right in understanding that your issue is that you'd have to build a custom-designed home rather than a project home?

If so, then I believe the issue will come down to whether SE Water are legally required to place easements on the sewage mains.

I'm pretty sure you'll have no cause against the vendor, unless your contract to purchase included "The vendor warrants that the land is suitable for construction of a project home", which of course it didn't, I bet.

If there were no easements or anything for the conveyancer to find, then you've no cause against them, either.

So seems to me that SE Water are your only possibility, and even then, it depends whether they're obliged to put easements on the property. If they're not, then I'm afraid it'll come back to your own due diligence. :eek:
 
Yes - I will need a custom built home which will obviously cost significantly more.

SE Water claims they are not obliged to create an easement over their assets (not that I'd expect anyone to say "sorry about that - lets make things right"). I'm awaiting some legal advice.

I'm kicking myself - this is about the 10th property I've purchased and the only one I've had a problem with. I wrongly assumed the Section 32 disclosure actuall protected me in some way......

So does anyone know any reasonable custom builders around that area?
 
Mark, I've spoken at length with an architect cousin about building over easements and he doesn't see them necessarily as a big or costly issue to build over.

Ring a few architects or small builders. You might get one that gives further insight for free.
 
quite common in Perth too to have sewers runnign on a block that aren't covered by easement... important to look at sewer plans when buying land.

i believe you can do a sort of concrete casing over the top of them, can be a bit pricey tho. or can use pilings up to 1m from the pipeline.
 
Thanks for your replies. SE Water has a "Buildover Customer Guide" and application process for building close to or over a sewer. However my (project home) builder doesn't want to touch it as the footings, slab etc.. would be too far out of their standard specification and they have concerns about subsidence.

Oh well - an expensive lesson for me....

I must focus on my desired outcome: "An affordable house bringing income" and get over the sewer thing!


Mark
 
I just mean any income, not net-positive income or anything.

My original budget was $350k for a house I could rent for $300

Now it will probably be closer to $400k for the same rental return, but so be it!
 
Mark, just to confirm, the section 32 did have the SE Water's Asset Information - Water & Sewer document but it didn't show the sewer or the S32 did not include this document
 
How upsetting for you - hopefully you can work it out.

I have a similiar - esque problem where there is a sewer running along the LHS of our boundary and the neighbour built a garage on the boundary a number of years ago.

Our building surveryor has advised us to get our engineering drawings redrawn to include bored piers (?? I'm not really down with the lingo but I'm pretty sure that's what hubby said) in order to reinforce their/ and our garage which will also be built on the boundary.

Your builder might have pulled out, but you may find there are willing builders out there - perhaps start with searching on the net, and ringing around. Perhaps investigate how much it would cost to have the house drawn as per your specs and then a builder may take it on ?

Could you potentially look at it as an owner/builder option ? That way you engage the tradesman that are willing to tackle it. The builder just doesn't want the headaches of managing the whole process themselves.

FWIW - in a architectural design magazine I once read, someone designed their house which has easements in the middle of the property, by building around them. They had these cool glass indoor gardens which looked effective. (But I realise you probably don't want to go to these lengths for an IP)

Let us know how you go.
 
buzzlightyear said:
Mark, just to confirm, the section 32 did have the SE Water's Asset Information - Water & Sewer document but it didn't show the sewer or the S32 did not include this document
Click to expand...

No - the Section 32 only included the Deposited Plan identifying the lot. The title information said "no restrictions" ie no easements or covenants.

Funnily enough I even rang SE Water before purchasing about connecting to sewers and water which they said would be no problem and at standard cost. Thet said nothing about a main line through my block (but I didn't actually ask!) It seems that SE Water meant to put the sewer line along the boundary but got it wrong by about a metre!
 
warrioress said:
How upsetting for you - hopefully you can work it out.

I have a similiar - esque problem where there is a sewer running along the LHS of our boundary and the neighbour built a garage on the boundary a number of years ago.

Our building surveryor has advised us to get our engineering drawings redrawn to include bored piers (?? I'm not really down with the lingo but I'm pretty sure that's what hubby said) in order to reinforce their/ and our garage which will also be built on the boundary.

Your builder might have pulled out, but you may find there are willing builders out there - perhaps start with searching on the net, and ringing around. Perhaps investigate how much it would cost to have the house drawn as per your specs and then a builder may take it on ?

Could you potentially look at it as an owner/builder option ? That way you engage the tradesman that are willing to tackle it. The builder just doesn't want the headaches of managing the whole process themselves.

FWIW - in a architectural design magazine I once read, someone designed their house which has easements in the middle of the property, by building around them. They had these cool glass indoor gardens which looked effective. (But I realise you probably don't want to go to these lengths for an IP)

Let us know how you go.
Click to expand...

Here's where I'm at:

  • A lawyer has said that they'll charge me $150 - $300 to read the contract, Section 32 and Conveyancing File and advise if I have a case for non disclosure, which is reasonable and I will proceed with.
  • Whilst my builder has pulled out, I have found a dozen small builders in Rosebud in the Yellow Pages. I've also found that Burbank Homes build houses, apartments and townhouses on narrow lots, so I'm also enquiring there. Owner / Builder is not an option unfortunately as I live in Perth.
  • From informal discussions I have discovered that building over SE Water Assets is quite common (one plumber joked that half of melbourne is built over sewer lines!)- but project home builders don't like it and won't accept a written indemnity absolving them of responsibility if SE Water has to access the sewer.
  • A local RE Agent has valued the block at about the same as I paid for it a year ago (including an honest disclosure by me) so its not like its the end of the world or an ASX share portfolio or anything:)
  • I'll probably end up building a narrower but 2 storey home which will add significantly to my costs but will be a much nicer and more valuable IP in what I believe is a growth area.
As a result I'm feeling much better - not quite elated, but every cloud has a silver lining and "after Winter comes Spring" etc...:D
 
think of all the extra garden space - very valuable in the area.

sometimes these problems rear their heads at us to make us think outside the square ... and often the view outside the square turns out to be much more pleasant.

look at your options:

sell and lose holding /buying/selling costs. i'd take this one only "if" there was another opportunity in the wings that would make you a better profit than you lose.

build double story and increase your yard space - more expensive to do, but would increase the value of your home.

build single story with casings over the sewer (very common) - more expensive but would not increase the value of the home.

any other options?

p.s. great attitude ... and the right one the have.
 
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