Sewer Main Diversion from Neighbouring Development

Discussion in 'Development' started by philly, 1st Feb, 2022.

Join Australia's most dynamic and respected property investment community
  1. philly

    philly New Member

    Joined:
    9th Jan, 2022
    Posts:
    2
    Location:
    Melbourne
    An IP I own has a neighbouring development in planning stages. I was aware of the proposed development at the time of purchase (the section 32 included proposed plans). Currently tenanted.

    However, I have received new plans from the developers design engineer with a consent form to sign. Basically wanting permission to enter property to do works etc. They say they'll need a week, will repair any fences etc and be responsible for all costs associated with the work.

    The original plans showed the proposed sewer diversion occurring entirely on the neighbours property (see original sewer travel path on attached pdf/image). However, the new plans show the sewer and new easement being created to the rear of our property and and up the eastern boundary.

    Questions:

    - Should the tenants request payment reduction due to invasion of their peace and quiet, would it be within my rights to pass this cost on?

    - Moving the sewer from under the shed is not an entirely bad thing, but could there be any benefit in asking for the original sewer travel path to be revisited as a design solution?
     

    Attached Files:

  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,248
    Location:
    Sydney or NSW or Australia
    Are you required to surrender & regrant the easement at the developer/board's cost?

    The new location would appear advantageous to you however you will have a new pit.
     
  3. Tufan Chakir

    Tufan Chakir Well-Known Member

    Joined:
    18th Aug, 2016
    Posts:
    877
    Location:
    Victoria, Australia
    1. Make sure the offer is in writing, checked by your lawyer, also check with the water authority about the proposal, just in case you haven’t been told something
    2. Include a provision for a rent reduction for the disruption, that’s reasonable, but don’t overdo it - you could decide to carry this given that you will benefit from the works
     
  4. philly

    philly New Member

    Joined:
    9th Jan, 2022
    Posts:
    2
    Location:
    Melbourne
    Totally agree. I was intending to cover the rent reduction (if it comes about) - I was just looking for any leverage points to keep in my back pocket in case it is needed.

    Overall though, the sewer redirection certainly opens up options for the property at some point down the track.
     
  5. lixas4

    lixas4 Well-Known Member

    Joined:
    24th Jan, 2016
    Posts:
    789
    Location:
    Melbourne
    Wow that is a win win result for everyone. They keep the easement at the rear of their property only, and you will get the potential to construct a building in the rear of your lot.

    Agree with tufan, try it on with the rent reduction, but remember this is a big benefit for you. If you did the sewer realignment yourself at a later stage, it would be around 20-30k in sewer works on your property (for the developer next door doing your bit it would be a lot less, as its combined with the rest of their works).