New rural res development and negotiating building covenants

Discussion in 'The Buying & Selling Process' started by charli, 9th Feb, 2020.

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  1. charli

    charli Member

    16th Sep, 2016
    Hi all,

    We are looking at buying in a new small lot rural residential development. All lots under 2 acres with vegetation covenants, building envelopes and developer also adding individual building covenants to each block.

    I believe some are all pretty standard building covenants but two raise concerns for me. One of them is to do with a 25m prohibited building area that states no building or structures including but not limited to eg animal housing , sheds garages and no possessions including but not limited to such as cars, boats, trailers are to be on the prohibited area (further items also listed).

    What does "but not limited to" mean? .

    Can I put a washing line or driveway through that area? Its not listed but I wonder if it comes under the "but not limited to" items. I am worried that the developer (a guy who has cut off a proportion of land and done it all himself) may think differently as to what I do as to what "but not limited to" means.

    The concern with this is that the next clause states if buyer fails to comply that the agreed clauses the liquidated damages amount is $100 000.00 that the buyer (us) agree to pay if we fail to comply to any conditions.

    Can someone please clarify further what the not limited too means and also does that liquidated damages amount hold up in court if it was to ever to go that far?

    I do not intend to do anything against the Clauses at all in the prohibited building area I just want it to be clear as to what we can and cannot have in there. I feel the clause as it is can be interpreted many different ways.

    I have consulted with a Lawyer who suggested we ask to have the liquidated damage clause removed.

    I have asked for the liquidated damages clause listing the figure to be removed and also the wording "but not limited to" and this was refused by the developer. He has stated that it is to all remain and he will not be removing or changing anything.

    We are in Qld so its all within the contract and not on Titles. Covenant also does not have an end date.

    Am I looking to far into this?

    Thanks for your help