Beware of Nasty Easements that Bite

Discussion in 'Development' started by MTR, 15th Jul, 2015.

Join Australia's most dynamic and respected property investment community
  1. Ichigo

    Ichigo Well-Known Member

    Joined:
    21st Jul, 2015
    Posts:
    74
    Location:
    Perth
    @Westminster , from what I understand, it's a 132kV transmission line, with the attached restrictions. My PM has booked and we're awaiting a meeting with Western Power to discuss the issue (probably another 6-10 days before this takes place).

    Initial guides for moving the wood transmission pole does not look promising at all... $115k (+/-50% and 6-12months timeframe).
    Remove or relocate transmission and communication assets

    @qak, luckily there's a stretch of open space / park right across the road if the transmission pole can be moved there without affecting other people's lots. It beats me how this is only picked up so late given that we're waiting for clearances, but seems like it was mistakenly believed that the transmission pole & line would not impact the building envelope.

    The other options I'm looking into is:
    1. design an ultra skinny 6m double storey on the corner lot. Need to see if we can fit 1 or 2 single bedroom dwelling as another alternative
    2. redesign the lots to have 2 of the lots facing the transmission line (probably about 23m deep lots, 10m wide so we can fit 2 skinny homes on them)
     

    Attached Files:

  2. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World

    I dont think you can move the pole

    work out what you can do and the restrictions. I believe there are some structures that can be built on this easement???

    However, its been 5 years since I dealt with this issue so I cant recall the finer details.

    At the time I had many discussions with Western Power, they were very helpful
    Also I dont think you can use metal roof due to this easement, bummer

    Very important to work out what the end plan is as this easement will impact on end value.

    All the best with this
     
  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,331
    Location:
    Perth
    Also be aware that some LMI providers do not like these easements so if you are hoping to sell as land then the new owners may not be able to get a 80+ LVR
     
    MTR likes this.
  4. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World

    This is a good point. My buyers had no issue, but it would have been a nasty surprise if financing was not available
     
  5. Ichigo

    Ichigo Well-Known Member

    Joined:
    21st Jul, 2015
    Posts:
    74
    Location:
    Perth
    Thanks @MTR & @Westminster.

    I was under the impression from my PM that we can't build a dwelling on the easement, but seems like we may be able to do so but will need to find out what restrictions will apply to it.

    Point noted on finance.
     
    MTR likes this.
  6. Jafs

    Jafs New Member

    Joined:
    11th Aug, 2021
    Posts:
    3
    Location:
    Perth, WA
    I am subdividing a block in two. The original building was badly damaged by a fire last year, I took a payout from insurance, hired a developer and proceeded to clear and sub-divide. All physical works have been completed and only now has Western Power advised that they will not sign off on the clearance because they have realised that the overhead power line is high-voltage and they require an easement.

    Western Power have sent me a bill of $924.11 for easement documentation, and a list of things I have to do including getting a solicitors signature and letter from my bank. I had a quick discussion with staff at the bank this morning and they believe that I will have to get the easement applied to my existing land title, which I will be charged for, and then I will have to apply for the sub-division separately, and pay again :(

    I guess I understand that an easement could be required, but its not because of any works I've had done. That power line has been there for 30 plus years, I bought the property in 2003 and ensured there was no easement before I purchased. I'm upset about the easement, it will affect both blocks and reduce their value. I don't feel that I should be responsible for all these costs and running around trying to get approvals, new titles, letters etc...

    My subdivision settlement would have been happening soon but I think this is going to delay it by months. I had expected to put the land on the market this month.

    Should I just accept the situation and get on with it? I don't know where to turn, anyone got any advice or suggestions?
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,331
    Location:
    Perth
    It's actually quite common to buy land that was no high voltage transmission easement on it and on subdivision need to put one on for something that has been there forever. There simply wasn't a mechanism to add something to the title but a subdivision forces the issue but you can get clues that it will be a potential issue but doing a DBYD and seeing what power lines are on the block

    You should be able to put the notification on title at settlement of the subdivision. Your surveyor and settlement agent/lawyer should be advising you on how to do this - most surveyors would have alerted this to you quite early on and prepared you for it but it shouldn't delay it by months.
     
  8. Jafs

    Jafs New Member

    Joined:
    11th Aug, 2021
    Posts:
    3
    Location:
    Perth, WA
    Thank you, I hope it doesn't.

    The bank has initially indicated that they may require the easement added to the current, single title rather than the updated title, so I'd have to go through titles twice. Hopefully I'll get better news from them next week.

    Do Western Power always charge the land owner for these belated easements that are unrelated to the subdivision?
     
  9. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,331
    Location:
    Perth
    Do you have a surveyor? Because normally they handle the paperwork side and the notification is submitted to landgate when titling is being done.
    The bank shouldn't be advising you on this and there should be no need to do it on the single title as far as I am aware, its a condition of subdivision and not relevant to your single title
     
    Last edited: 5th Dec, 2021
    lixas4 and MTR like this.
  10. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World
    @Jafs will the lots be green title ? I recommend this
     
    Jafs likes this.
  11. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World

    Yes my surveyor did this
     
  12. Jafs

    Jafs New Member

    Joined:
    11th Aug, 2021
    Posts:
    3
    Location:
    Perth, WA
    The paperwork has been provided by Western Power. They have said they won't sign of on the sub-division (which is being managed by a developer) until the bank and I sign the agreement. The agreement makes reference to the draft subdivision plans and the bank have initially indicated that they won't sign of on an agreement to the easement unless its on the existing title. I've submitted a formal request for the banks sign off-ff now, fingers crossed they will agree to the easement without making me go back to Western Power and asking them to aply the easement to the current title.

    Also, for some reason, Western Power initially just sent me a bill for easement documentation, no explanation or paperwork, The bill didn't even state the address the easement applied to. I sent it to my developer who has been chasing it up for me and found out all the info and requirements. He has not seen this type of easement being applied before so I'm surprised you said it was common. I wish he and the surveyor had known about it, I may not have proceeded.
     
  13. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,331
    Location:
    Perth
    Why did you use a developer - are they like project managing this? Generally you just need a surveyor to guide you through it. Honestly I have not heard of Western Power handling it this way but the easement is quite common and easy for the surveyor to handle.
    I would specifically ask your surveyor tomorrow if they can handle it.
     
    lixas4 and Jafs like this.