Granny flat dilemma

Discussion in 'Granny Flats' started by kerry kerry, 12th Jan, 2021.

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  1. kerry kerry

    kerry kerry Active Member

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    Hi all,

    So here is the situation.

    We are in cooling off period for a property on which we put our offer on. Its a 594 sqm block with a garage converted into a 1 bed 1 bath granny with separate letter box and separated by fence throughout by the main house. The electricity and water are not separate for granny flat but the house and granny both have separate meters.

    The contract states that only bedroom construction is unapproved but the vendor does not hold only paperwork for the plans and DA approvals, as per them they did not built it and bought it very long time ago as it is and always kept as rented. So the buyer technically has to carry out all investigation as per vendor’s conveyancer.

    The lease is separate however the agent mentioned that the tenant is happy to pay cash too if we like which we obviously don’t want to avoid any further dramas. The tenant is locked in 12 months lease through some different real estate which was documented just before the property was put on sale but the tenant had been living in for longer time.

    Being first time home buyer point me in the right direction to avoid any future issues. If I were to approach council to get more information about plans, would they be able to provide me at this stage? Where do I start and obtain?

    In future I would want to get a proper DA approval but to start with no plans and paperwork in hand i feel lost.
     
  2. spoon

    spoon Well-Known Member

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    Council might considered it illegal conversion and ask you to rectify it or get approval. If it has electricity and water supply, it might not be a pure structure approval.
     
  3. thatbum

    thatbum Well-Known Member

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    It just sounds like some dodgy unapproved dwelling. Why would you assume you can even get a DA for it later on?
     
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  4. kerry kerry

    kerry kerry Active Member

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    I assumed it because it looks like the land has been subdivided for granny flat by the fence drawn between as well as separate letter box saying XX and XXA. The bins for both are separate And the council collects higher rates (normally 300 per qtr but for this 500 per qtr)than they usually do .

    Please excuse for my lack of knowledge in the whole process.
     
  5. thatbum

    thatbum Well-Known Member

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    Without express and clear approvals, I would definitely assume its not either an approved structure, or approved for its dual use.

    Otherwise anyone can chuck up a fence and more letterboxes. Not sure what the exact rules are in your local government area, but here you can often get more bins too, so not surprised if it costs more in rates. It still not conclusive proof of planning and building approval.
     
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  6. kerry kerry

    kerry kerry Active Member

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    Thanks for your guidance.

    If we still proceed am I thinking correct that if council doesn’t approve I will have to get it demolished or atleast compliant if they agree?

    second option would be to later subdivide the block at the back ( current granny is on side) and reconstruct future dwelling.
     
  7. thatbum

    thatbum Well-Known Member

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    Probably something like that. What would be "compliant" though?
     
  8. kerry kerry

    kerry kerry Active Member

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    Remove the bedroom structure that is the only thing vendor knows about is not approved as per disclosure in the contract to make it compliant.

    what should be my or our conveyancer’s next steps to avoid making assumptions and guesses to help us decide our final call?
     
  9. thatbum

    thatbum Well-Known Member

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    I'm not sure what the "bedroom structure" is in the context of the whole premises.

    Just get all the approvals for everything. Unless it's a really old house, it should all exist. Not just for structures either - find out what the approved use is.
     
  10. Anthony416

    Anthony416 Well-Known Member

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    1) A granny flat can never be sub-divided off from the principal dwelling, they must remain on one lot together.
    2) "Retrospective" approval will need a BCA report and possibly a BASIX certificate. Can not go via CDC, needs a DA to council.
    3) Can be a costly process.
    4) May not have to demolish but possibly need to remove kitchen.
     
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  11. Scott No Mates

    Scott No Mates Well-Known Member

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    Sounds like a converted outbuilding not designed for habitation. How does the vendor know that the bedroom is the only non-approved part? Has the rest of the building got approvals?

    Would it be prudent to get title insurance in this instance?
     
  12. kerry kerry

    kerry kerry Active Member

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    Okay I will have to dig out more information from the council. FYI it is Blacktown council if that helps.
     
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  13. Antoni0

    Antoni0 Well-Known Member

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    None of what you've said so far sounds good, make sure you're not using a property surveyor and legal professional recommended to you by the RA or property owner, go to someone totally independent. Don't be embarrassed to ask them a question when you don't understand something, that's why you are paying them. Too many red flags in this story.
     
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  14. kerry kerry

    kerry kerry Active Member

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    I have now requested the information about plans and approvals through the council by their GIPA request form.

    I hope to get it before the cooling off expires.
     
  15. kerry kerry

    kerry kerry Active Member

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    Yes everyone I am using is independent of the vendor and the agent.
    Thanks
     
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  16. kerry kerry

    kerry kerry Active Member

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    Meanwhile can I ask a private certifier for an advise after inspecting the GF? Would he be able to guide me through about the compliance and non compliance parts and the cost associated?
     
  17. kerry kerry

    kerry kerry Active Member

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    Hi just and update regarding information from council at this stage.

    They have only got the building certificate attached with surveyors report from 1994 as an electronic file which they sent me straight away but other documents were in archives and microfilms which they would require more time to find.

    Anyways, the reports mentions the fibro outbuilding also drawn on the lot diagram and an approval for an awning for that outbuilding that was mentioned in the email.

    See attached files for your reference.

    If someone can guide me from hereon that would be great.

    Thanks
     

    Attached Files:

  18. Scorpion

    Scorpion Member

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    @Anthony416 is bang on here - one of my family members is having a very similar issue at present. Council has instructed them to demolish the structure completely!
     
  19. Scott No Mates

    Scott No Mates Well-Known Member

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    The structure is approved as an outbuilding or class 10 (non-habitable) - it's not a GF.
     
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  20. kerry kerry

    kerry kerry Active Member

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    Thanks for explaining this to me.
    We are still in cooling off period now. Will try to negotiate the price with the vendor first .
    Also can any one recommend title insurance provider ?
     

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