I'm in the process of trying to purchase a laneway running alongside a property. The council is currently working through the steps to see how much of it is available, and for what cost.
Recently i received a rates notice with a capital improved figure of $1,040,000, I paid $785,000 for the property 4 months ago. I rang the council office and explained that I understand that the property sale price and valuation will often be different, but to be 30% higher seemed a bit unreasonable.
During the discussion the council employee mentioned that its a large block of over 1000m2. I said no its only about 750m2. He looked through his records and found that back in 2007 (previous owner) the council determined that as the owner was "occupying" the road/lane then they should be paying rates on the laneway, (to be fair the laneway is used to access a garage and a part of the boundary fence is a long way from its correct location)
I questioned the definition of "occupying", he was unsure of the exact definition
The laneway is not fenced or gated off so public access is possible, it is zoned as PUZ1 but is still shown on title plans as a named road.
I understand adverse possesion does not apply to state owned land in victoria. But what are the ramifications of the fact that council has not maintained the area for 5 years and have been charging rates on the land?
I will try to upload an image of the site to make things clearer.
Sounds like it might be time to engage a surveyor, solicitor & valuer to get your deal over the line.
This sounds like a beauty. Do you have anything in writing saying it is 1000m2 ? Do you still have a copy of the contract of sale which has a page in it about the property boundary? If all this stuff says the property boundary includes the laneway then I'd suppose it is yours.
Jacqui Middleton | Middleton Buyers Advocates
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I thought it would all depend on the title. You mentioned it is shown as a road, classified PUZ1, which is public land. Though as others have mentioned, best to see a professional to confirm things.
Cheers
Tom
I would definitely hire the professional to confirm that you own the laneway. I think it would be the best strategy since you definitely do not want to pay more for something that you do not own.
Have a look at your purchase contract and Sec 32 as it will detail what area is made up of your Title.
I would also ask the Solicitor / Conveyancer who acted for you in the purchase as they would be aware of the position.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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