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Subdividing with Covenant

Discussion in 'Development' started by Skilled_Migrant, 27th Jul, 2016.

  1. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    Just going through a s32 when came across the following covenant
    upload_2016-7-27_16-36-20.png
    The covenant clearly says that there can be only one house on the land.
    • Does the covenant still stand if the land is subdivided, given the subject land has been subdivided into two lots ?
    • Will the council permit a sub division, if the covenant is in place ?
     
  2. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Old convenants can be removed if current planning laws otherwise permit the development
     
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  3. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Im confused. Is the land already been subdivided and you want to sub divide again?

    Have had something similar where I purchased a sub dividable established property from a developer who bought a parcel of land and this was the original house. Their covenants stated "single dwelling only" for all lots in the new sub division including mine.

    Lawyer advised this covenant along with others be removed which developer agreed to else I would have had to seek permission from every other purchaser in the estate in order to do so. If one person objected then game over.
     
  4. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    Thanks, managed to get the relevant legislation http://www.legislation.vic.gov.au/d...09f29a3ca257761002e62a1/$FILE/79-9320a031.pdf :
    So now more questions: who are the persons interested ? There are none registered on the covenant.
     
    Last edited: 27th Jul, 2016
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  5. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    The land was subdivided by Urban Land Authority, decades back. I am looking at the possibility of further subdivision

    This bit gets confusing. I have seen other covenants where the interested parties (lots effected) are registered. If none are mentioned, is it none, neighbors, council ...?
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    Never picked you as an investor after all the evil things you had about us. Good on you for giving it a go :)
     
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  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Legal owners, beneficial owners, mortgages perhaps.
     
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  8. Tufan Chakir

    Tufan Chakir Well-Known Member

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    Interested parties in that context are owners of all lots included in the original subdivision. The will (usually) all be affected by the same covenant and therefore have an "interest"