WA - post sale drama (sewer)

Hi all

Just after some general opinion on this situation, feel we let ourselves down from a DD point of view but also feel others in the sale process dropped the ball a little

Property purchase, older property with a Heritage house on half of the block and ~400sqm vacant area that we are planning to build on (zoning etc is not the issue)

1. View property with sales agent, discuss our plans to retain old house and build, no issue
2. Agent shows us plans from owner (that has a proposed 6 unit site on the area in question and retains old house)
3. View the title, no issue, no easements
4. Make an offer, haggle etc and the deal done
5. Seller signs the OA (specially, 9.1, does not know of any sewer, drain etc etc)
6. Property settles
7. Settlement paperwork arrives post settlement and we have a sewer main in play (on the vacant 400sqm)

Now this is far from ideal of course

• Selling agent pleads the 5th (did not know of it)
• Chat to WC, evidently there can be a sewer main and no easement recorded on title
• Seller knew of the Sewer (have since seen historic WC correspondence)
• Settlement agent actually obtained a copy of the sewer plan but did not feel the need to let us know before settlement

Thoughts on this - I do feel like I have been played a little (by seller), or is this just how it works and I put it down to a lesson learned.

FYI - its not the end of the world (thankfully), but probably looking at 60k of additional costs for piling etc

 

Your lawyer acting on the conveyance should be able to advise right? Hopefully you used a lawyer?

 

I'm not too familiar with how things work in WA but doesn't the contract of sale require a copy of the sewer diagram (it does in NSW).

The sewer isn't an easement as it exists under a statutory power.

 

we didn’t (and never have tbh in any other buy/sells), probably should have

 

Pretty sure that is not a requirement for contract of sale

 

My PPOR in Perth has an easement for a sewer on the title.

 

I'd consult with a lawyer asap since from what you said, there might be some grounds for some recourse.

 

So how do you determine the location of the sewer - site survey, potholing, searching records, aerial photos, DBYD?

 

You use DBYD. It is not part of the contract of sale to show where the sewer is. Sometimes a REA will provide it but generally not.

@aushelby what is clause 9.1? Was it on the offer?

When buying a development site there is a whole raft of due diligence required that you should be doing and not relying on the seller or REA to know and furnish. You should check
- DBYD for sewer, gas and power lines/poles as they all carry unregistered/implied easements
- check for other unregistered easements such as a road widening easement
- another handy document is the Property Interest Report available at Landgate which will outline who/what has an interest in the document
- council (check zoning), check permitted use
- council - check town planning scheme and do not assume what plans you have been shown are possible

 

You are 100% on the money of course - feel we were well covered planning/zoning etc wise but the sewer was an oversite for sure (incorrectly assumed an easement would be on title, incorrectly assume sellers warranty)

After the fact, but BDYD clearly shows the issue, the PIR is less clear but enough info to warrant a closer look - guess in the excitement (this is our PPOR build) we missed these steps

Clause 9.1, Joint form of general conditions (is the sellers warranty)



Thanks for all the replies to this, appreciate peoples points of view

thatbum - I recognise your UN from WP

cheers

 

You're going to build a PPOR behind the house not units? Then the sewer line might not be so bad and you might be able to be designed around so you don't need piling - depends on location of course.

 

DBYD