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possible orders to remove granny flat from council before auction - Need opinion

Discussion in 'The Buying & Selling Process' started by bernardblack, 30th Oct, 2015.

  1. bernardblack

    bernardblack Active Member

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    Hi All,

    I have been looking for my 1st IP in Melbourne and found a 3 bedroom 1 bathroom house with 1 bedroom flat behind separated by a fence on a 600 sqm block. I am concern if the flat/granny flat behind is legally built so I called the council to find out. The council said the enforcement team has been investigating this property for a while and turned out the granny flat has to be removed. There is no official letter sent to the owner yet but the council is going to send it next week and the auction is going to be on next Saturday.

    I believe there is a potential on this block and I don't mind removing the flat. Should I give two offers for the vendor to choose from before the auction and mention something about I am aware the flat has to be removed?
    Offer 1: higher price but subject to the removal of the flat
    Offer 2: lower price and I will remove the flat myself

    What would you do??
     
    Last edited: 30th Oct, 2015
  2. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Just do your valuation based on the existing house less the cost of removal... Definitely mention the GF if not approved, you want that to work in your favour.

    What is the 'potential' with the block?
     
  3. rhinsor

    rhinsor Well-Known Member

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    You could yell out to everyone at the auction that the council said the granny flat has to be removed
     
    Ed Barton, ej89 and bernardblack like this.
  4. dabbler

    dabbler Well-Known Member

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    I think they will go to auction hoping not everyone has checked, and agent maybe knows nothing of it anyway as you seem to have triggered the problem, doubt they will want to deal with you as if you bring it up, they will know who went to council (or they will blame anyone who mentions it anyway)
     
  5. jins13

    jins13 Well-Known Member

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    I agree that the vendor would do this. The property would have a reduced appeal and room for negotiation if the granny flat had to be removed. Was the granny flat build/installed only recently?
     
  6. See Change

    See Change Timing Lord Premium Member

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    Personally I wouldn't get involved in it at this stage at all unless the agent and seller are aware of it already and the potential removal is factored into the price .

    If they hold you responsible and suffer a significant financial loss as a result , they will know where you live and who you are

    The reality is you don't know who you are dealing with .

    There was a notorious Sydney hit man who was never charged with any of his suspected hits , but he did go to jail for killing someone during an incident of road rage .

    Cliff
     
  7. rhinsor

    rhinsor Well-Known Member

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    Maybe it's better to get a friend to tell everyone at the auction that the council said the granny flat has to be removed. Then they can walk off.
     
  8. bernardblack

    bernardblack Active Member

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    The granny flat is about 13 yrs old at least, brick.
     
  9. bernardblack

    bernardblack Active Member

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    Good block size, close to public transport and uni, new businesses around the area and it is still cheap
     
  10. bernardblack

    bernardblack Active Member

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    Or may be you can do that for me LOL;)
     
  11. bernardblack

    bernardblack Active Member

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    The council told me someone called them about a month ago so I think they have been investigating the problem. I doubt they are that efficient because I just called them last week..
     
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  12. See Change

    See Change Timing Lord Premium Member

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    Ok , so it's not news to them .


    Cliff
     
  13. Chilliblue

    Chilliblue Well-Known Member

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    Have someone else bring it to the agents attention in writing of your findings and ask for clarification.

    Take a copy to the auction and have the auctioneer the current status.

    May scare off or at the least cause some confusion.
     
  14. bernardblack

    bernardblack Active Member

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    I am not sure, but may be i should get a PO BOX.. just in case????

    I have mentioned it to the agent but basically said he will not tell the owner because it is not official. I was thinking may be I should give an offer in writing but after reading what See Change wrote.. I am not sure if I should.... HELP!!!!!!!
     
  15. Chilliblue

    Chilliblue Well-Known Member

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    If you have advised the agent the person that you spoke to at Council they cannot legally bury their heads in the sand and say in the future that they knew nothing.

    You could also request information from the vendors solicitor if the agent is no help.

    You need to work out your figures on the worst case scenario and if the amounts are agreed by the owner then great. If not walk away.
     
  16. Scott No Mates

    Scott No Mates Well-Known Member

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    Have you requested a building compliance from the council?

    What advice is your solicitor giving? (note: don't use a conveyancer in this instance) @Terry_w
     
  17. balwoges

    balwoges Well-Known Member

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    I had this same problem when the Building Inspector suggested I check with council if ensuite was approved - Scott is right to suggest you ask your solicitor for the vendors to provide a Compliance Certificate, if they are not willing then bow out gracefully or take other action, at least you will know the status of granny flat.
     
  18. bernardblack

    bernardblack Active Member

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    A re you sure "they cannot legally bury their heads in the sand and say in the future that they knew nothing."?
     
  19. bernardblack

    bernardblack Active Member

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    My solicitor told me to remove some conditions from the s32, check with the bank if they are going to approve or not if there is a need to remove the flat and he told me to make sure to talk to the council.

    No I didn't ask for a building compliance. Do I really have to ask for it since the council has already told me it has to be removed.
     
  20. York

    York Finance Broker Business Member

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    That is rubbish talk from the agent. It's as simple as this. You have spoken to the council. They have told you IT HAS NOT BEEN APPROVED. It doesn't matter if it's 'officially not approved'. It only matters that's it's not.
    The fact that the council is going to send out a letter in a week is irrelevant to the issue.
    Councils can give info such as approvals over the phone for a property even if not in your name yet. (I've done this)
    It's obvious the agent is trying to brush you off and get the property sold before anyone notices.
    I say if you really want it, low ball it covering the cost of removal of the GF plus an additional 'pain in the a#s' premium. That's if you're willing to deal with council in the aftermath. Or simply just walk away and find another property.