Perth Restrictive Covenant from 1950s

Discussion in 'What to buy' started by AnasWestie, 9th Feb, 2021.

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  1. AnasWestie

    AnasWestie Well-Known Member

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    29th Jan, 2021
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    Perth
    Hi guys,

    I am looking at this property for future development however I found out that it has a Restrictive Covenant - Only one dwelling - from the 1950s with no expiry date.
    The property is corner block and council has a clause - as per their advice - to fit multiple dwelling application, however no info or feedback regarding the Restrictive Covenant.

    Has anyone been in similar situation where a restrictive covenant was imposed on the title?
    How did you remove it, was it a difficult and costly process?
    Would you avoid the property if it had a covenant from 1950s that impeds future development?

    Thanks for your assistance and advice
     
  2. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    I wouldn't acquire unless I'd had it removed to be honest, or submit an offer on the basis that it's removed prior to settlement by the vendor. They might sell it to someone else who doesn't care as they don't have development plans, but sounds like it'll be a headache for someone buying it who wants to develop the land.

    - Andrew
     
  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I'm not a lawyer so not capable of giving legal advice but I have dealt with an old covenant before.

    If the company who put it on is still around they can give permission to have it take off.

    The "wonderful" thing about covenants such as these as that there isn't really any governing body that cares about them. For example WAPC nor the local council cannot enforce them. The only people generally that can complain that you are dividing into more than one is the neighbours who also have the same covenant and the people/developer who originally put it on the block.

    I developed under an old covenant and took the risk on after some careful consideration. The covenant in my situation was that houses needed to be a certain size (not possible due to the new size of the subdivided blocks) and certain outdated required colour scheme for the exterior.

    If you look at the land around the block which presumably also have the same covenant have people subdivided?
     
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  4. AnasWestie

    AnasWestie Well-Known Member

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    Thank you so much for your feeback.

    Yes they have subdivided.
    One last question, Perth property prices seem to have increased drastically, possibly due to government incentives? What do you think will happen within the next 6 months, would the prices stagnate or continue to rise?
     
  5. Perthguy

    Perthguy Well-Known Member

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    AnasWestie likes this.
  6. AnasWestie

    AnasWestie Well-Known Member

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    Perth
    Perthguy likes this.