ENCROACHMENT PRIOR TO SETTLEMENT: NSW

Discussion in 'Legal Issues' started by Doculus, 22nd Jul, 2018.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    Yep Google maps is just as accurate. They have caused territory disputes between countries !!

    By the time legals and stamp duty are involved even a real AP issue with a co-operative neighbour AND council will be very costly. Throw in any opposition and it will get ugly fast.
     
    JDM likes this.
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    By the time legal and stamp duty are involved even a real AP issue with a co-operative neighbour AND council will be very costly. Throw in any opposition and it will get ugly fast. That school has been there a while - Good luck.

    I would invest in legals and a survey before you get too invested in the issue. It could be 1m2 or 100m2 out. The survey may well confirm the fenced area is less that being offered by the agent and vendor. I imagine that provides a difficult issue for the vendor and may help get a lesser price if its less land on offer !! How could they argue its worth a higher price if there is less land ?? Thats where the value may be in this issue.

    Once the agent knows the issue they cant keep it private either.
     
  3. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,932
    Location:
    Brisbane
    With our block, the corner was shown as being truncated when the neighbours bought their block. They check this out specifically before buying, and then once we had the survey and fenced our block on the correct surveyed boundary, they got ugly with me, and also told me they were going to chase the agent for either changing or misrepresenting the boundaries. I've no idea if they did that, but having sold the place, I assume they will have moved on.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,095
    Location:
    Sydney or NSW or Australia

    There's always plenty of disclaimers when advertising property. Very few things stick to a 'food's agent.
     
  5. Doculus

    Doculus Well-Known Member

    Joined:
    1st May, 2016
    Posts:
    70
    Location:
    Newcastle
    Here is the update on this property. Once I got the actual survey in my hands, it confirmed that the site area was 527sqm which is 107sqm less than cited on the listing itself and on sixmaps. Exactly what many of you have said - don't rely on indicative boundaries on sites like sixmaps - get the survey!
     
    Marg4000 likes this.
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,667
    Location:
    Australia wide
    that is about a 25% discrepancy!
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,095
    Location:
    Sydney or NSW or Australia

    So that's a "no" then? :eek:
     
  8. Doculus

    Doculus Well-Known Member

    Joined:
    1st May, 2016
    Posts:
    70
    Location:
    Newcastle
    It is a no! - as the point was to develop the site. I could possibly fit 3 on side by side (given a very wide frontage). But return not high enough:

    -A acquisition $225k per site
    -Build of 300k (130-140sqm) each
    -Other estimated costs of 35k (Strata, Driveways, Landscaping)

    Total Costs 560k per site

    With a resale: 625-650k, that leaves a potential profit on each of only 65-90k, so don't feel entirely confident with that margin. The larger site 630sqm would have allowed 4 on site which would have been more viable.

    Anyway, that is my take on it.
     
  9. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,932
    Location:
    Brisbane
    I've not re-read the thread, but if the listing shows the wrong size, then I'm sure you'll let the agent know and the listing will be amended.
     
  10. Doculus

    Doculus Well-Known Member

    Joined:
    1st May, 2016
    Posts:
    70
    Location:
    Newcastle
    Already done, but price not adjusted accordingly.
     
  11. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,932
    Location:
    Brisbane
    At least the description is now accurate. To be honest, the price wouldn't likely change because unless a developer is buying, your normal family won't really care about the size of the yard. They are buying what they can see, not what is written somewhere. They are not looking for the potential.
     
    lixas4 likes this.
  12. Doculus

    Doculus Well-Known Member

    Joined:
    1st May, 2016
    Posts:
    70
    Location:
    Newcastle
    Quite true