Whoopsy!!!! (Oh F$#%! Moment)

Discussion in 'Development' started by Scott No Mates, 8th Dec, 2016.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,101
    Location:
    Sydney or NSW or Australia
    A little bit of an oopsy when the wrong house was demolished in Bankstown

    How many things don't ring true?
    • Wrong Street Number (shown correctly on Google Maps)
    • 200 Marion St is an Asbestos clad building - should have been notified to Workcover prior to works commencing
    • Power, gas & water were still connected to the building - these need to be disconnected prior to demolition
    • Did the demolisher do a site inspection prior? How about a quote?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    wonder if his building insurance would cover this
     
  3. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    hmm..something smells fishy about the whole thing . .
     
    Brian84 and Cactus like this.
  4. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,386
    Location:
    Sydney
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    Mate of mine owned a lot of land at #25 in the street. He build a 3bed home at the front and a battle axe lot at the back he built a 2 br home (25A). Subdivided. He sold off the one at the back after 3 years of dealing with tenants etc. Paid his taxes etc. Fast forward five years.

    Several years later he receives a Council notice for rates arrears on 25A and passes this to the neigbours property. Days later another arrives. Eventually he grows tired on repeated letters and calls Council.....No Mr B YOU havent been paying your rates. But he had. Well he had been paying his neigbours rates !! He explains what happended and finally council check. They come back even more adamant. Mr B you live in the front house right ? Yes. Well you are in 25A. The rear lot is no 25.

    Eventually it seems that :
    - My mate has been paying his neigbours rates for several years;
    - Council rate notices had a mailing address of the incorrect respective addresses based on title. ie My mates #25 notice said #25 and so Psotie put #25's mailn the right box.
    - The neighbour stopped paying his rates and has a significant arrears...Council are close to imposing caveat.
    Then he realises....If I'm getting the wrong rate notices what else is wrong ? Title perhaps ?

    So he called Liar & DeShonk the lawyers who did his purchase, sale, subdivision and leases docs. They check their files and do some checking. Then ignore his calls. Repeatedly. So he calls me and I suggest he see a guy I know.

    Who finds that:
    - Liar and Deshonk did a subdivide and misdescribed the rear lot as 25 not the other way around. So #25 prior to subdivision became #25A after etc. Now this didnt matter much when he had tenancies and only because a issue when he sold. So he told them to draft contracts to sell the rear property.. And they did...No 25. But that was the front house. All made sense to everyone since they just used the title reference for the conveyance.
    - Westpac transferred title in his property at the front to his neighbour and not the rear lot. Thank God nobody realised and sold his house also !!
    - He is living in his neigbours property and vice versa.
    - They are paying each others rates
    - The lease the owner has on the backhouse is also wrong. Since it means the tenant is in the wrong house.

    All because a lawyer who was conveying the title, the bank and the layers for the buyer all missed the specific title references when subdividing. Then others changed the title designator on the sale contracts as they all thought the contract was wrong when the property address and title reference were inconsistent. They only checked back as far as the subdivision when the issue occurred so the mistake wasnt identified. Turns out the contracts were right (originally) for the address of #25.

    Six months+ later my mate got his title restored. OSR also saw the error and didnt impose transfer duty on the two exchanges. All his legals were paid by Liar and Deshonk's PI insurer and the Council restored the rates to the respective accounts and applied his credit...Now here is the best bit. He argued the rate assessments issued years in arrears to correct his account were now not valid etc....Council agreed in the long run. except for the current year. They refunded all his rates merely since he had paid the wrong account.

    Sounds similiar to the Bankstown property
     
    Last edited: 8th Dec, 2016
    Elle Ar, GOU, Cactus and 7 others like this.
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    There are also stories where builders have built houses on the wrong block.

    Heard of another guy who married the wrong woman too.

    Mistakes happen all the time. But you have to be extra careful with new subdivisions.
     
    GOU, Cactus, mrdobalina and 1 other person like this.
  7. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

    Joined:
    12th Jul, 2015
    Posts:
    2,194
    Location:
    Melbourne, Australia
    Whoopsy indeed, especially due to the asbestos issue. However there is probably an owner somewhere rubbing their hands in glee that they'll be getting a new house built at the expense of someone else's insurance !
     
  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    I argue that.
     
    Terry_w likes this.
  9. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    Poor bugger who owns this may now have a tax problem

    CGT event C1 treats the capital proceeds to compensate as CGT income. This is reduced by the destroyed asset costbase. I would argue thats probably $0.00 for that house.
     
    Terry_w and Perthguy like this.
  10. mcarthur

    mcarthur Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    761
    Location:
    ACT
    I've heard many people claim that...
     
  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    Like the demolition - too late now.
     
  12. BKRinvesting

    BKRinvesting Well-Known Member

    Joined:
    15th Oct, 2015
    Posts:
    685
    Location:
    Canberra, ACT
    You'd think the name would give it away... ;)
     
    Cactus likes this.
  13. Guest

    Guest Guest

    +1, story I read said same guy had previously owned both houses.

    The wrong one conveniently empty at the time of demolition.

    Job organised by email.

    I wonder if this was setup as an insurance scam to get a new house.
     
    Mooze, Brian84, wombat777 and 2 others like this.
  14. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    Yeah I have a strong suspicion about this. Even the way he answers in the article seems so unnatural for someone who just lost a home. Something is definitely up and I reckon the demo company is in on it too.
     
    Last edited by a moderator: 10th Oct, 2021
  15. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,935
    Location:
    Lower Blue Mountains
    If it wasn't Bankstown would you still say that? Some wild accusations and stereotyping going on just because they're dodgey out there :D
     
    Last edited by a moderator: 10th Oct, 2021
  16. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,101
    Location:
    Sydney or NSW or Australia
    If the guy had previously owned both, then he doesn't own them now :confused:
     
    Last edited by a moderator: 10th Oct, 2021
  17. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    @bob shovel we all know the Eastern Boys are honest as :p
     
  18. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,935
    Location:
    Lower Blue Mountains
    No way, difference is you guys can afford goods lawyers ;)
     
    Elle Ar and Sackie like this.
  19. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    hahah! touché!
     
    bob shovel likes this.