Would you buy property with easements??

Hey All,

Need your advise on buying a property with easements.

I am looking at a property which has easement on the left side of the property. (picture attached)
What i understand is that this makes the developers highly uninterested in the property as they can not develop townhouses ro apartment buildings on such land.
Can someone please guide, what do you do with such properties.

I believe, with the goal of capital gain or self development, we expect someone would develop a building on these older homes in future when population rises.
With such thing in mind, it is not a good idea to buy such property. But any other line of thinking here please...

Thanks
Nish

 

Hey @Nish . Picture has dropped off. Can you reattach?

I've got a house next to an easement. Sadly, I know nothing of the rules on developing on, under or next to an easement. *clicks Watch Thread*

 

Hi @Zoolander , I have reattached the picture.
As per the rules, nothing can be build on the area which has an easement. So, if your property is next to easement, it might not be a big problem. This property has easement in its boundary. that is the issue. Don't caught me on my words though as I have also learnt about it today

 

Normally you cant build on an easement or so many metres from one. The block should be cheaper than the others in the street.

Are you able to incorporate that part of the land into the front/backyard if you were going to build a few dwellings on the block. If not, I think it would be hard to utilize the whole block. You may have to choose a different block. Depending what you want to build on it.

Where I live, easements are very common but they normally run either across the back or across the front of the block so it doesnt effect us that much.

 

Might just want to flick your plans to a town planner and talk plans.
Then make an offer if it stacks up.
Easements are not necessarily deal breakers.
(Not that I've done any development yet, but I have bough land with easements and a good mate is a town planner...)

 

What is the easement for? Sometimes it's beneficial to have proximity to an easement ie drainage if it is a hard to drain block. You may still have to pay to access the service.

Whereas you might steer clear of a power line/electricity easement.

 

On another note, Do we need an approval to put a gazebo over the easement that runs through the backyard ? Council website does say that approval is not required for such work (but doesnt mention easements)

 

@rattler what is the purpose of the easement eg: drainage, electrical, overland flow, the long paddock etc?

The use will determine how you can use the land above.

 

Take a look at your title to see what the easement is for. Chances are you don't need approval, but if someone needs access to dig up a pipe/cable on your easement, then don't expect them to pay for any damage to your gazebo.

 

Along the rear boundary, no problems.

 

Depending on the easement and the rules you might be able to put the driveway along there as that is cheap to replace IF they need to rip it up.

I bought a place recently and it has an easement, the easement itself is about 2M for a manhole and I can work it into my 'driveway' so it isn't really an issue.

 

I would consult a surveyor for accurate advice on what you can and cant do with the land inclusive of easements. The zoning will determine what you can out on there.

@Aaron Sice is it true WA will be scraping the zoning rules or is that a nationwide thing?

 

There's a review of DC2.2 underway at the minute but that's all really. Liveable Neighbourhoods is still in the air after 4 years.

The R Codes are up for review again but I haven't seen anything thru the HIA EP&D for comment yet.

Short answer is 'no'.

 

Interesting point with stratas and easements in WA.

An exclusive portion of a build strata cannot include an easment. So if you are building a townhouse / villa / apartment over the easement, you must have the easement modified to suit- and go around -the strata title - even though you may comply with sewer/drainage clearance requirements.

However, Land only strata can incorporate an easement; any improvements simply have to demonstrate minimum clearances / asset protection.

Odd, huh?

 

Thanks all.
That means the possibility of selling it to a developer in future is bleak.....Its a drainage easement

 

Not necessarily....

Get the title and 88b to establish who the easement benefits. It is most likely an inter-allotment drainage easement going by the very small plan you have shown and therefore private easement benefiting uphill properties. If it is a council drainage easement, there will most probably be an overland flow associated with it making it flood prone lot, it's hard to tell because the plan you have shown is very small but if I was a gambling man I would say it's a private inter-allotment drainage easement.

Site can still be developed so long as the function of the easement is still maintained. Easement could also be extinguished in some cases as the beneficiary lots may no longer need it, or the easement can be redirected depending on slope and fall of the land. If it;s a council drainage easement, building envalope may be severly comprimised due to flooding.

Anything can be sold if the price is right.

Unfortunately you won't get the answers here, you'll need a professional.

 

Surely a Deposited Plan of the subdivision would detail what easement benefit what lots and where?

 

Unfortunately not in NSW. The DP will show the location of the easement, the title search will show in writing the encumbrance exists on title, but you will need the 88b to tell you which lots are burdened/benefited and the terms of the encumbrance. My expereince in NSW anyway. Every state has their own conveyancing act so might be different.

 

Cheers for clarifying that!