Sewer line not disclosed by vendor

I recently purchased a house for knockdown rebuild purposes in SEQ and after settlement I discovered it it has a 100mm concrete sewer line at a 2m depth running down one side of the lot and across the back of the lot and connecting quite a few houses. This was not disclosed in the contract and my conveyancer did not pick this up in their various searches. I only picked this up when looking to build.

As a result of discovering this I am finding it restricts what I can do with the property somewhat in terms of house plans etc. In the REIQ contract under "Matters Affecting the Property", this was not disclosed even though the advisory text states the following:

WARNING TO SELLER: You are required to disclose all Title Encumbrances which will remain after settlement (for example, easements on your title and statutory easements for sewerage and drainage which may not appear on a title search). Failure to disclose these may entitle the Buyer to terminate the contract or to compensation. It is NOT sufficient to state "refer to title", "search will reveal", or similar.​

(1) Is this a "statutory easements for sewerage and drainage which may not appear on a title search" since I guess I am not free to dig it up and throw it away.

What are my legal options/requirements here? (2) Can I pursue compensation from the vendor post settlement? Can the vendor claim ignorance (it was a deceased estate)?

(3) If I build a new house and pool on the site, do I have to disclose the sewer line to the next buyer even though that was not done to me?

Even if I can fit a decent new house and pool on the property, an aging sewer line is still a liability since it may require repairs etc if not now then at a later date.

In terms of losses relative to the ideal scenario of no sewer line I am up for:
- The reduced building options in terms building shape, size, location, facing, pool etc;
- The reduced garden options;
- The likelihood of repairs required to the sewer line (could easily be north of $10k up to $30k?);
- A less marketable property given the sewer line.

Any thoughts much appreciated.

 

Is it shown on the sewer diagram?

How did you discover it?

 

The builder did the required searches and obtained a sewer diagram but me being inexperienced was unaware of how to go about finding that information.

I have since learned of this service, which I will use in future:

Research my land - Queensland Urban Utilities

In an ideal world this information should be part of any vendor disclosure and real estate agents should have this information included with other material they distribute to interested potential buyers.

 

I can’t see how a sewer line buried 2 metres down would reduce your garden options - I.e planting, garden beds etc.

I also can’t see why you would be responsible for future repairs to the sewer line - that would be the relevant authority.

How wide is the easement?

 

The sewer diagram is included in the mandatory documents for the contract of sale (in NSW). Take it up with your solicitor if they hadn't brought it to your attention.

Knowing where a sewer line is located on a property is essential information forming part of the purchase sue diligence and decision making.

 

Yep, this.

 

I would not worry about future maintenance costs that will be cost for Urban utilities.
As far as the other items ,ask the question too your legal team as in Qld that would be one of the most important items,and buried inground pools that are un certified and just filled in without drainage gravel..

 

No easement (as in nothing on title). In QLD at least if the pipe is below a certain diameter they don't seem to bother with formal easements.

Easements - Queensland Urban Utilities
See table "
Easement width requirements for gravity sewers on private property*"


As for repairs, I will contact urban utilities. It makes sense to me that given I am going to the bother of making a new house that an aging sewer line should be inspected and repaired etc so that things don't have to be dug up again for a long time.

 

I’d be surprised if the authority will check it just because you are building on the site.

If they did that for every build, it would raise every consumer’s bills.

 

Correct but no officially declared easement if below that size (which mine is), which makes me wonder why since you still have similar restrictions on land use.

 

It's a legislated easement so it's as official as you can get, like any reservation for the Crown.

The zone of influence over a 100mm service is alot smaller than that for a major service, the engineer will design to compensate.