Need advice on buying property with easement ( 1200 SCL IBL)

Discussion in 'What to buy' started by Vishh, 21st Apr, 2020.

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  1. Vishh

    Vishh Well-Known Member

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    Hi All,

    Background : Looking to buy first home.
    Came across this property, and was going through contract.Ofcourse will review with a conveyancer if we like the property. Have concerns regarding easement and although googled, not cent percent sure. There is an existing house

    I came across this in title search "EASEMENT FOR THE CONVEYANCE OF WATER AFFECTING THE PART OF THE LAND ABOVE DESCRIBED SHOWN AS M W S & D B EASEMENT VIDE"
    I didnt understood what that meant w.r.t property. Does that mean sewer passes through the easement?
    The diagram is attached. 21 is the property.
    upload_2020-4-21_21-21-24.png

    I understand I can't build on easement, but how about the risk of home getting flooded / contaminated if pipe breaks.
    I heard neighbours can access this easement area, i.e they can enter my property without permission. True?
    Can I plant some flowering plants near easement?
    Finally, can I bargain on property because of this easement?

    Sorry for lots of questions. Just thinking whether it will be worth inspecting in first place.

    Thanks,
    Vish
     

    Attached Files:

    Last edited: 21st Apr, 2020
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    There's a 1200mm dia pipe running thru the block. There is also room either side for access to replace the pipe.

    How does it impact lot 21 and your ability to build a house? Admittedly, lot 19 is even more impacted by the location of the pipe.
     
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  3. Vishh

    Vishh Well-Known Member

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    Sorry Mate. I forgot to mention that there is an existing house in fair condition. Updated the diagram with house in it. I am more concerned about usage of easement area for lesiure and gardening purpose or a car port. Is that an sewer pipe?
     
    Last edited: 21st Apr, 2020
  4. bmc

    bmc Well-Known Member

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    (assuming its in Sydney) SCL - steel cement lined.
    1200 dia is big, are you near a reservoir or pumping station ? @bob shovel

    looks like a water main to me but you will need to check with Sydney Water in regards to building over it but i doubt it, unless it is very deep.?

    the easement dealing will contain the rights and obligations, who benefits etc over the easement. vide a DP will show dimensions and location.

    negotiating a better price - possibly
    risk of bursting and flooding - anything is possible
    access to easement by neighbours - highly unlikely more like access for Sydney Water (if ever needed)
     
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  5. Closet

    Closet Well-Known Member

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    There will be an associated covenant or similar for the easement that states the terms- you can get it from the utility provider. Can access and dig up at any time etc. Impact on property price is dependent on potential use of the land and whether it is common on other surrounding properties in the area.
     
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  6. Marg4000

    Marg4000 Well-Known Member

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    If you buy it, one day you will sell.
    Future prospective buyers will have the same questions and doubts.
     
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  7. Vishh

    Vishh Well-Known Member

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    Thanks. Will try to check that .
     
  8. Vishh

    Vishh Well-Known Member

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    Yes true. They will come to propertychat.com.au and ask the same question or they will find this thread.;)
     
  9. Closet

    Closet Well-Known Member

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    If you are thinking about buying talk to a few agents to understand the resale impact. Most agents view is that if the property is all ready developed and isn't suitable anyway for further expansion there is limited impact. Also comes down to how the risk is marketed or downplayed by a good agent...could be negligible...If bought at a good price...it depends
     
  10. Vishh

    Vishh Well-Known Member

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    Thanks for that. It makes sense. After all a good sale depends on good agent and good marketing.
     
  11. HL Koh

    HL Koh New Member

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    I am interested to buy a 146 sq.m unit in a mixed-residential development comprising in total of about 120 units. The lot title contains the following easement condition i.e. “Easement for access within common areas variable width (limited in stratum) affecting the part(s) shown so burdened in the title diagram”. I find it rather strange for a unit to contain such easement condition. Can anyone shed some light on this matter ? Thanks.
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    The easement is for access in common areas. Who is the beneficiary?

    There are often several cross-easements for services in mixed use developments eg water, gas, power, lifts, air cond ducts etc. These easements will also provide rights to access the common areas.

    There may also be rights of access to traverse the common property eg from parking to lifts or shops to toilets on CP and the like.
     
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  13. bmc

    bmc Well-Known Member

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    Probably best to start a new thread.
    not strange and common.
    an easement in stratum just means its limited in depth and height.
    a strata lot is generally limited by stratum. see the notes on the floor plan - (ie lot 4 is limited to 2.5 metres above its respective finished floor level)
    could be for a number of reasons. you will need to read the terms
     
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  14. bmc

    bmc Well-Known Member

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    snap
     
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  15. Manish1

    Manish1 Member

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    1. Call the council regarding what you can build on it
    2. Dial before dig can help you with any queries on planning for building something on it that involves digging
    3. Sydney waters should also be able to help providing the information on what level of access they can have on property

    Neighbours cannot do anything on your property but they can go to Sydney waters for any problems that is caused by the pipe.

    Negotiating price - yes you can

    You can plant flowers but if you are planning to dig than go to dial before you dig
     
  16. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sydney Multiple Areas Business Member

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    Looks to me like the sewer is the easement. An easement in laymans terms basically means a part of the property you don't own/control exclusively (the right for someone else to access your land). If a leak happens, it'll be their responsbility to fix it but they'll dig up your yard to do it and it'll be your responsibility to put it back together. This would be unlikely for sewer easement but sure, it could happen.

    IMO an easement such as this isn't a big deal provided you don't have any future constructions plans for the back yard e.g. a granny flat (in this case doesn't look like the lot is big enough anyway).

    Yes, it's a deterrent for future buyers but not a deal breaker if it fits your budget and usually does not affect value to any great extent, if at all. Having said that, you could still make it a problem for you during your negotiations to try and get the price down a bit ;)

    Andrew
     
  17. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Last summer a Sydney water easement (fresh water) that runs along a main road townhouse frontage let go. It was around 1200 dia. Apart from washing away three t/houses of landscape and flooding all three homes several meters of footpath, trees, road and guttering all went. Took then half a day to shut the water off. The crater was a few metres deep and the rubble was washed well down the road. They had to dig it out of the stormwater drains for 100m. Then the crew arrived to dig it all up and replace 20+ metres of pipe. First emergency repairs and then a few days later a more ambitious engineering job. Fast forward four months and in April they finished the new civils and left the homes with a poorly levelled lawn. Looks like a bombing occurred.

    The property owner is entitled to restitution but only for basic lawn. No structures. And heavy gear will rip up a lot of damage. eg Crane over your house ? 24/7 emergency repairs. I'm told it was an insurance claim for the flooding so make sure your policy covers inundation and burst pipes.

    I would avoid an easement that runs across a lot like that eg no pool. no GF, etc. They are often straight along a rear boundary or one side of a lot. Cant image what Lot 19 can build on that land. It could end up with a wierd house placement. I would seek legal advice.
     
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  18. Scott No Mates

    Scott No Mates Well-Known Member

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    A pocket park in lieu of the developer's contributions ;)
     
  19. kimbrisvegas

    kimbrisvegas Well-Known Member

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    Reduced options for placing house on block would definitely have a massive impact on value for Lot 19. Sometimes it can end up being a bargain with a bit of creativity. One of my house design magazines covered a really interesting solution where owners picked up a block at a pretty huge discount due to similar awkward easement. Design solution was house divided into pavilions, with some of the easement area being part of a breezeway linking the pavilions.

    Potential impact for Lot 21 depends somewhat on whether it is within the area where you couldn't build anyway due to setbacks, whether this is the best spot for driveway or carport. Would avoid using impacted corner for anything like driveway that requires concreting to be effective. Pavers or gardens that are less hassle to replace if utilities needs access to do work on the pipe in future would be best use of that corner. This sort of work is not something that happens on a regular basis.
     
  20. Vishh

    Vishh Well-Known Member

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    Thanks for that. It must have been a hell of situation for the family in that townhouse. I didnt proceed with the house anyway.

    You are right. Lot 19 has a weird design. Looks like half house is in front and remaining half in back.