Five days till settlement and I find out there is an easement.

Today is Saturday the 1st of October and a house I am buying settles next Friday the 7th (Queensland). Although I have several investment properties, this one is for my family to live in. Yesterday I received an email from my solicitor informing me of the easements on the property and there is a sewerage pipe running the full length of the property just inside the boundary/fence. The house went unconditional a while back so I am concerned that I have no choice but to go ahead with this purchase whether I am concerned about the sewerage pipe or not.

The easement was not on the contract. In a phone call with my solicitor she said the sellers were not required to disclose the easement on the contract because it was not on the title and also because the house was built in the 1980's.

I would like some advice as to whether I have any cause to cancel this purchase based on the fact that they did not inform me of the easement. Or, is it totally my fault for not getting my solicitor to do a search for easements before I let the contract go unconditional?

Also, should I have concerns about there being a sewerage pipe running inside the boundary of the property? Or is it a total 'non-issue'?

I have always tried to avoid purchasing properties with such easements in the past and the fact that I am finding out only days before settlement is very frustrating.
I appreciate any input.

 

Unless it affects your ability to build on the site it's a non-issue. It runs along the boundary, you can't build on the area anyway.

What is shown on the sewer diagram?

 

It is a non issue. . . .unless you plan to build over the sewer line in the future.

Around 40-50% of all sewered blocks will have an easement for a sewer,

 

I spoke to Darryl from Certus Legal about this once. I'm pretty sure he said it was a common means to crash a contract right up to settlement. Speak to him maybe

But, otherwise, who cares? You can't build there anyway, and you can get approval to build over an easement/sewer, even if you could.

 

I would say non issue. Unless there is a manhole cover in your yard you'd never know it was there.
Obviously you like the house itself enough to buy for a PPOR, so is it worth cancelling for something near 3 metres underground?

 

The only issue you could encounter is if you have a plan to purchase the neighouring site for the purpose of a development. Then you might have a problem. Not unworkable, but just expensive to work with. If you have no plans for any kind of development that includes the next door site (on the same side as the easement) then I don't see any problem.

 

I had this issue with the land I bought for my PPOR. It just restricts the trees I can plant in the backyard.

Not that I care. The location has been a gold mine for extracting equity

 

Sounds like a statutory or unregistered encumbrance. If so seller was required to disclose on contract - it even says so right there on the contract. Seller would be in breach and you have termination rights as they can't comply with standard condition 7.2 of the contract among other things. May have rights at common law if it was material and therefore a latent defect.

Are you sure it was your "solicitor" and not the admin/paralegal/conveyancing?? or other unqualified admin person that most firms use to run conveyances in QLD.

If you are happy to email me the contract [email protected] then I will have a look and provide my opinion

 

BUYER BEWARE OR SELLER BEWARE? - Affinity Lawyers - Gold Coast

Easements and Selling Your Home | We are Brisbane solicitors and Sunshine Coast solicitors...

 

If you had rights, you may be able to ask for an adjustment.

I do not think it is worth exiting just due to an easement, unless it buggers up some building or development plans.

Heaps of properties have easements, I think it is silly to dismiss anything with an easement just for having one, sewer and stormwater must go somewhere.

 

Good thread. Informative and to the point and something that will probably be something many buyers will encounter.

 

Going through old thread instead of creating one. Can you explain what restrictions in terms of plants and trees I can plant. For example can I plant a hedge tree along the fence? I just got into a contract few days ago and was hoping to plant hedges on the boundary where there is easement.

 

Many water authorities provides lists of red and orange lists of trees. Red = Dont. Orange = careful. eg Eucalypt gums are red.
A hedge isnt a deep rooting plant but seek nursery advice as some species can be feral eg NSW WeedWise with roots

 

Thanks good to know.