Prop, being new with this, would it be better to pay a private certifier for an assessment of the property as part of the Due diligence? I might as well pay something rather than purchasing something where i wont be able to build because i miss sonething silly.
Edmond, I guess in the line of business I'm in, I have read literally thousands of contracts of sale. I've gotten to the point now, where in less than 60 seconds I can see if, from a contract perspective, whether any particular property is a go/no go.
Most of the information you need is in the 149 certificate. However, there are a few traps and these would come in what's called the 88b instrument. This is the part of the contract that lays out what, if any, covenants affect the property. These covenants are usually put there by the original developers of the land to keep the values up in a new estate. Typically, they are about min. size of house to be built, colours & type of fences, rooves etc. They can also cover things like external construction materials to be used i.e. brick only, and so on.
It would be important to know this, before you work out costings for a colorbond or hardiplank granny flat for instance, if you are only allowed to build in brick. This is not insurmountable, covenants can be varied, modified or extinguished and the authority to be able to do this will usually be the original developer or the local council. This will be noted on the 88b instrument.
All the same, if you are going for a 10 day approval, you really don't want to be approaching the council for this, IMO.
So be careful, do all your DD by all means, but also let your Private Certifier see the contract of sale - so he can read the 88b instrument for himself too.
*edit* Just to add: In the areas you are looking you'll see many REAs advertising "suitable for a granny flat STCA". Everything with a land size bigger than a postage stamp seems to attract this kind of statement.
In reality, granny flat construction are NOT STCA unless you are doing a DA. The NSW Planning SEPP over-rides the councils.
I've noticed in the many searches we've conducted that the numbers of properties in a suburb & price range can yield say 300 properties. We've then whittled this down (after a desktop inspection) to 30 properties of interest. We've then called for 30 contracts of sale and eliminated all but 10 (due to 149 certificate or sewer placement issues). After inspecting 10 we might only shorlist 1 or 2 properties. So all that to say - be prepared for a lot of work. Cheers, Alan