What do I do with this sold property problem ?

Hi people.

I have a dilemma.
A mth ago I sold a building block on v/terms because it suits my situation right now.
A couple bought it, it has a transportable on it to live in while they build .
I don't know whats going on but council told them they can't build. This is ridiculous , it's a town block and only 2 mths ago I asked council myself what I need to start building on this exact block .
No problem , they sent me the exact permit info needed, even a mud map for the block, so there was no mistake.

There's no restrictions anywhere on the titles or in any of it's info.
These guys bought it and now councils telling 'them ' they can't build on it . They reckon they don't want any more septics on town blocks.
What ! 2 mths ago they couldn't wait to help me out, all was fine.

I think the buyer will get on top of it , seems pretty tenacious but I don't wanna be dragged into it , the place was done and dusted as far as I was concerned and thats the way I wanted it.

What the hell do I do with this ?
Tear up their contract if they can't get the permit ?
Forget about it and let them sort it out ?
Go on a holiday maybe ?
Am I suppose to help out or what ?

Cheers
 
If you sold it in good faith, and the property has settled, then I would assume that it is their problem not yours. In saying that, I hope you have a covenant on it to cover yourself for the vendor financing?
 
Agree with skater. If it is sold, its sold. The purchaser does their DD and searches and hires a lawyer etc. Not your problem.

The only 'problem' you have is getting the purchaser to pay your 'vendor finance terms'. As skater says I hope you registered a 2nd mortgage or a caveat to protect your interests.
 
Yeah I definitely sold it in good faith. I realize many would just take the hard nose path but I'd hate to mess this couple up though , nice people .
I'd hate to rip their contract up though too , it has settled and they've been on the property since day 1 .
I was considering swapping them to another property if they couldn't get the permit .
How nice do I want to be if they couldn't though, or have to be , how nice would you be ?


There's no mortgages on those blocks though so theirs is free and clear and it's really up to me

Cheers
 
.... but I'd hate to mess this couple up though , nice people .
YOU did not mess them up. They are responsible for their own mess (if there is one - or their solicitor who did the conveyance). They need to take it up with the council themselves if they have a grievance.

I'd hate to rip their contract up though too , it has settled and they've been on the property since day 1 .
You can't rip up their contract - it is a done deal anyway.

I was considering swapping them to another property if they couldn't get the permit .
Nice sentiment - BAD idea. It could be seen as an admission of liablity by yourself. Then they could go you for all sorts of other costs: conveyance, pain & suffering, etc etc. You are just opening a Pandora's Box. BEWARE!

How nice do I want to be if they couldn't though, or have to be , how nice would you be ?
Save the sentiment for something other than investing or you will wear someone else's burdens.
 
Thanks again Property and skater

Bad ideas all round then you think eh, thanks for the input then guys very appreciated .
Sounds like I best stand ground on it then so will do . Of course if I do he'd push that permit wouldn't he and should bring them round in the end anyway you'd imagine if there's no choice .

Will leave it as is .

Cheers
 
What does "sold it in good faith" mean exactly?

If you sold it to them under the impression they would be able to build on it, and if they cant. You should take the property back and unwind the deal.

Doesn't matter if it was in writing or verbal. That is the right thing to do, legally and ethically.

Did they ask you specifically "can we build on it?" and what was your exact answer?
 
Seems like maybe the right question hasn't been asked!!!

Namely - if we can have a septic what can we have - is it that the council wants a pump out and that the buyer doesn't want to hear the answer because of the ongoing costs.

I agree that it its not your problem it now the new owners problem as I am sure there is a way around the problem.

Cheers
 
With all due respect, Evand, it up to the purchaser in all cases to do their due dilligence. You would be a fool to purchase something without checking for yourself, that it is suitable for the purpose.

A case in point. Recently a block of land came up for sale in a suburb nearby. The price was quite undervalued, or so it seemed. This block was suitable for sub-division AND had plans drawn up for two 3 bedroom homes. The price was considerably lower than other non-subdividable blocks.

After a quick visit to the R/E I picked up a copy of the contract as well as a copy of the plans. As soon as I got into the car, made a phone call to the draftsperson who drew the plans who told me all about the block and the costs of preparing it to build. The call went for around 30 mins as he told me in great detail about the fact that the drainage would have to be redirected through at least two other properties and the probable costs of both doing the work and the allowance that would need to be made as compensation to the owners of the blocks.

It took me no more than 30 minutes to discover that this block would not be fit for my purpose. The current owner knows all about the costs of doing the work. This is why he is selling it. He hasn't disclosed this information to prospective purchasers.
 
I've done the same thing Skater and of course a buyer should do their DD. But what does "sold in good faith" mean exactly? Or more to the point, what is your interpretation of the phrase?

Isn't it funny how people hate to get ripped off when buying but it's ok to say 'oh....caveat emptor' when selling.

Wouldn't it be great to live in a society where people could say anything they like when selling something with no accountability whatsoever and pass 100% of the responsibility onto the buyer.

It would be like living in a world populated with RE agents. ;)

It seems it always only applies to the buyer, not the seller.
 
But what does "sold in good faith" mean exactly?

Judging from the comments made by Blaster, he said that he had himself contacted the council in regards to building and had been given the green light. He then decided to sell the block. Unless I am mistaken, he had "faith" that the new owner would be able to build. It is not his fault that the Council had a change of mind.
 
In my experience the phrase "in good faith" is pretty much always a cop out.

If he received that info from council it really means nothing as far as the purchaser is concerned. It was between him and the council.

Also, whats important here is what he said to the purchaser or what he led the purchaser to believe.

Judging from the comments made by Blaster, he said that he had himself contacted the council in regards to building and had been given the green light. He then decided to sell the block. Unless I am mistaken, he had "faith" that the new owner would be able to build. It is not his fault that the Council had a change of mind.
 
Hey people.
Glad you asked Evan , in good faith. I asked myself and came up with the fact that I did inquire 2 mths prior and council said fine so I'd call that in good faith.
But in ways I agree and was originally thinking along those lines if they couldn't build, it's on V/terms so I can if it's mutual . I think for now at least though I'll say I can't, forcing him to give council a nudge . If they ok'd me only 2 mths ago and his bought, his stuck,surely !

But Andy who would think to ask what type of septic , are there types ? You might actually have something though and I'll tell him that if he calls .
I did suggest go compost, build, dust settles, chuck in septic, dunno !
Not looking forward to checking my emails for a wk or two though !

Owell , see how the council pans out for him for now I guess.

Cheers
 
Last edited:
i hope the purchasers get something in writing and more concrete from the council rather than rely on verbal assurances from anyone.

just as a matter of interest where is this land and which council?
regards.
 
Back
Top