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

If I am willing to get the GF removed, what are the possible **** i have to deal with ? I thought it is just hiring someone to demolish the flat and that's it. This is my first property I don't mind having to learn how to deal with the council.

And may be I should CC the vendor's solicitor and mentioned something about the GF in the email when I send them the offer.

 

In dealing with council it really depends on who you speak with. There are a lot of movers and shakers in local government. Ensure the person you speak with is someone reliable who can give you that information.

The second thing I would do is to get them involved, telling them that the house is being sold. Generally they should speak with the agent because they now know that a building is being removed on premises that are being sold and this information must be communicated

 

I dont think the council is extremely helpful. They know the regulation, but he keep telling me if i want him to state it is illegally built in writing I need to put in a request which will cost $$$. And I don't think they want to be involved with the real estate agent. Now I am thinking how can this information get communicated to the vendor without looking like I am the one who trigger the whole thing!! I

I have actually spoken to two other person from the council, more like administrator including one from the council rate department. They both told me a house is legally built if they are rated.

 

If you buy it then that letter that the council would have sent the vendor....well now it will be addressed to you.

So yes it's a matter of demolishing and removing the GF. It's extra fuss. Not saying is not worth it, but be prepared to 'clean up the mess'. They will send you a letter of notice to demolish. Then you will need to engage a demolition company to do the job. Then you will need to notify the council to inspect. They may come and go a few times depending on the details of the job. Eg: Oh, there is a pipe sticking up there. You need to fix it etc. So they will go and come back. Once the council gets involved and come on site, it's a a can of worms. They may spot something else and give you headaches over that. Just be aware of it. But like I said, if it's a top deal and you're prepared to deal with it, go for it.

 

You must speak to a planner at the council, tell them what you have been told by other people at the council and if this information is correct. Administrators or rate people are not even remotely qualified to open their mouth.

When I was getting my duplex approved I spoke to someone at the local council that told me they wont be giving approval. Lo and behold I got it approved faster than most other people can.

In reality anything that is said here is based on speculation, so if you are very interested then seek legal advise.

But generally you should speak to a planner at the council and demand information as you are a serious buyer. If you dont get information opt to speak to higher up, even an urgent meeting with the mayor if you manage to get it. Get the local state govt member involved, call commonwealth ombudsman. Effectively your angel would be that your are a serious buyer and council must provide written info if they are taking action on an asset that you are interested in.

They are a public organization funded by public money and they need to start acting like it. Otherwise threaten them with legal action if you buy the property and they attempt to devalue it by asking for things to be removed.

On another hand, why can't the agent provide information that the granny flat has been certified? In other words either before or on auction day, you are within your right to ask if it has been certified or not.

 

Is it being advertised as 'with granny flat'? It comes down to very specific wording. If the agent is selling it as a legitimate and complying extra dwelling then it MUST be legal and compliant.
If you have informed him that it is illegal and he knows then then he must change the advert, must inform his sellers, and must inform all parties of this fact, and change the s32 if its included in there. This REA is not doing his job.
In WA he'd be up **** creek for the shenanigans going on here.
Once the Vendor and the REA are aware they must disclose these things which materially affect the site (and price!).
It is no problem to be the person to bring it up. If you want to own it then you need to do your homework and you have. If this had come up during a building inspection you would pass that onto the REA too.
So I would challenge the REA, speak to his boss, speak to their conveyancer and get some advice from a local person on the ground who knows the rules for things like that. Unfortunately I'm WA so I'm going on WA stuff but it would be fairly similar.

 

I did speak to a planning officer. He told me the enforcement team has been investigating it and they are going to send out a letter to tell the owner to remove it.

I also asked for a building permit and approval for the flat but the REA said it was built more than 7 yrs ago and therefore do not have to provide that in the s 32.

How did you manage to get your duplex approved?

 

Thanks for your advice. I will speak to their conveyancer.

 

In Victoria a real estate agent is required to:

• act fairly and honestly and to the best of their knowledge and ability

• exercise skill, care and diligence in performing their functions

• make all reasonable enquiries to ascertain information relevant to a transaction

If they are advertising the property with any mention to the granny flat then they would be in breach of:

• inducing a person to breach any contract

• engage in conduct that is unprofessional or detrimental to the estate agency industry

Not to mention acting in a misleading manner.

 

They are advertising as a flat / self contained bungalow. The REA is definitely not acting honestly in my opinion but may be he thinks it is not official from the council so he doesn't care.

 

Until council has issued a notice then the agent is not acting dishonestly. It may be an illegal structure but they have nothing in writing from a government authority to cause them to lose any sleep.

The vendor's solicitor has no cause to deal with you or your solicitor as until you have an accepted offer on the table there's nothing to talk about.

If you are keen to submit an offer do so but it would be under auction conditions ie no cooling off so anything that you want has to be negotiated prior to the offer.

If you are going to go to auction the same applies any special conditions have to be prenegotiated and agreed so that your bidding will be on a different set of conditions. (I don't fancy your chances).

 

I just hope that the council send out the official letter asap.

 

I disagree @Scott No Mates. By advertising the structure, then the agent must have undertaken some research as it being compliant.

If they are advised contrary, then they have an obligation to confirm its status.

Burying your head in the sand will not stand up in court.

 

I think ACCC will answer this question?

 

What if there is a fine and the council don't get around to issuing it till after you're the owner?

 

As t

The owner when the council serves notice to comply wears it.

@Chilliblue - no research required. See their disclaimers, all information has been provided by the vendor

 

So it would be prudent for the OP to find out what sort of fines apply. Just a few hundred or thousands? Councils are not known for their speed.

 

No disclaimer will insure an agent against knowledge and non disclosure.

As I stated earlier, in this case the more prudent solution (if wanting to try to make the purchase) is to factor worst case scenario and work your offer around that.

If the belief is that the structure is not legal then factor in the cost of its removal and work out a price for the remaining. State in your offer the reason as to why the offer is at that price.

If it goes to auction, make certain that the agent and the auctioneer are aware of the circumstances (verbal or not) in writing and if someone is too stupid not to have done their due diligence so be it.

 

The risk lies with the purchaser @Chilliblue. If notice is served by the council during the auction campaign then the vendor will need to disclose to the agent and modify the contract. If it's not disclosed to the agent, what obligation is there to investigate by the agent?

It's rare for me to quote Xena but:

Sure, Xena is talking about a lease however the principle of disclosure remains.

Neither the agent nor the vendor are obliged to bring a potential problem to anyone's attention if it's to their own detriment.

@Ed Barton - yes the op should factor this risk or advantage into their bidding.