Forums / Property Investing / Help Needed! / Land Dispute with Developer

Viewing 20 posts - 1 through 20 (of 27 total)
  • Profile photo of LewisLewis
    Participant
    @lewis062
    Join Date: 2015
    Post Count: 12

    Hey Guys,

    I joined the forum a few years ago, but never needed to post. Until now.

    I bought land in June and was titled in October for a 448sqm block in Plumpton – Western Suburbs.

    When I purchased the land, at the time I wasn’t allowed to see it, due to construction of roads, fences, barricades, you name it. At the end of the day I thought, it’s land, what could be wrong with it other than maybe a little uneven, or some rocks. WELL!

    When it eventually got titled, and me and my partner got to view it we noticed from the footpath there was 2 metres of land, followed by an approximate 1.02 metre drop. followed by the remainder of the land. This is for the 5 blocks on my side of the street, and funnily enough all these blocks haven’t had any house commencements yet basically the rest of street is ready to move in.

    Please see attached photo of my girlfriend standing next to the drop. https://ibb.co/iP4wbF
    I have met my new neighbours and they were also shocked to find the drop and have been advised by their builder that it’s not right. The builder has said that we should have been notified of the ‘defects’ in the land prior to settlement, or a price decrease should have been issued. we have been told we face additional costs just to develop, such as a retaining wall along the front of the block, extra drainage and plumbing to ensure no water can get inside the house, fences will need to be built higher to accommodate the drop to be at a suitable height from the road, plus we were told when it is time to sell the property the value would be lower due to how the house is sitting compared to others in the area. why would someone else want to take this risk on board?

    Our neighbours are currently arguing with the developer to receive compensation due to the fact there were no disclosures in regards to this. They have advised the developers 1 week to respond or there will be legal action. There are no other blocks available to purchase. The developers offered to buy back the land and pay the $6000 settlement fees incurred which I find a joke. so far one of the 5 blocks have been sold, and another is for sale. Before I also begin to email the developers I was after as much advice as possible.

    If there are any builders or developers that can please help me out, it would be much appreciated.

    Kind Regards,

    Lewis.

    • This topic was modified 3 months, 4 weeks ago by Profile photo of Lewis Lewis.
    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 610

    If the developer will buy the land back and pay back the settlement fees that sounds like a pretty good deal. This would seem to be a defect in quality rather than in the Vendor’s title and whether you would be successful might be questionable. Your best chance might be if Australian consumer law applies. Also should the Council have consented to the excavation on your site. Bear in mind you will end up out of pocket in a court case anyway as not all your legal costs will be recovered if you are successful.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 15,709

    Your should seek legal advice from a solicitor.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://www.terryw.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Operating Remotely)

    Profile photo of LewisLewis
    Participant
    @lewis062
    Join Date: 2015
    Post Count: 12

    The problem with getting the land bought back is that there are no other blocks available for purchase, if we were to purchase something similar we will be looking at paying $30k+ for something similar.. if we knew there was a problem we would have bought the block on the opposite side of the road not this one…

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 876

    Nice high voltage power nearby too as well – if you can walk away from this it might be the best option.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of LewisLewis
    Participant
    @lewis062
    Join Date: 2015
    Post Count: 12

    They dont concern me too much as they arent too close to me.

    I really like the area, but if i walk away, get my cash back or sell privately, there isnt anything around in that price range, i feel like I have been ripped off, i could have spent the same price for the block opposite me but it seems like a lucky dip and i was unfortunate enough to get the block i did. If i do sell I am going to be behind the eight ball and will need to figure out where to go, and additional costs. Selling really wasnt an option for me..

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 610

    You could easily end up $30,000 out of pocket. Why was the land on that side excavated? Was there a pollution issue etc?

    Profile photo of LewisLewis
    Participant
    @lewis062
    Join Date: 2015
    Post Count: 12

    I’m not entirely sure but i think the entire estate is built on a slope. all the houses on the streets behind my land, all their drive ways are going upwards a little or are even. Our block of land is even with the house we back on to now and their drive way is even with their house. there are only 5 blocks which have this problem and unfortunately i am on one.

    I dont know why it was excavated, i didn’t know it was excavated because were weren’t told, werent allowed to see the block before purchase, and now if i do build i will have more costs, if i do sell i have lost my chance to live in this area because there isnt anything going for this price.

    I could have easily chosen the block opposite to purchase, or waited for the next release if I had known. and thats how my neighbours feel too. they are currently arguing the point with them to try get compensation for the additional costs. I am trying to gather as much information as i can to put forward my case too.

    the $30,000 day will cover initial costs, but at the end of the day when i do want to sell, i will probably fall short of properties in that area and who knows what other damage it could sustain in the mean time with rain etc.

    Profile photo of blackhotelblackhotel
    Participant
    @blackhotel
    Join Date: 2010
    Post Count: 130

    Sell back to the developer and move on. You will always have water problems in the future being on the wrong/lower side of the street. If you try to sell it now, you probably have lost more $$.

    Profile photo of LewisLewis
    Participant
    @lewis062
    Join Date: 2015
    Post Count: 12

    So because they didnt disclose the defects in the land, I now will be out of pocket for interest fees, stamp duty and any chance of owning land in that area for that price?

    I could have chosen the same size block opposite and not had these problems?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 15,709

    What does your solicitor advise?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://www.terryw.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Operating Remotely)

    Profile photo of LewisLewis
    Participant
    @lewis062
    Join Date: 2015
    Post Count: 12

    I havent seen a solicitor yet, I have emailed a request to VCAT
    my conveyancer was shocked when she saw the photos though and didnt think that it was right.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 15,709

    I havent seen a solicitor yet, I have emailed a request to VCATmy conveyancer was shocked when she saw the photos though and didnt think that it was right.

    Are you serious?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://www.terryw.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Operating Remotely)

    Profile photo of LewisLewis
    Participant
    @lewis062
    Join Date: 2015
    Post Count: 12

    in regards to?

    Profile photo of LewisLewis
    Participant
    @lewis062
    Join Date: 2015
    Post Count: 12

    I am only new to this, this is my first property, I was trying to see what I had going in my favour, when i said i emailed VCAT that was just for advice as someone told me i should ask.

    I have asked my Conveyancer the same questions. Im trying to work out everything…

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 15,709

    Don’t you think it would be a good idea to get some proper legal advice about this matter?

    Time is ticking…

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://www.terryw.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Operating Remotely)

    Profile photo of LewisLewis
    Participant
    @lewis062
    Join Date: 2015
    Post Count: 12

    This issue only arised on Saturday when I had a meeting with my neighbours and builder to find out the additional costs. Thats why I have posted on hear to find information on how i should go about this….

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,089

    Hi Lewis,

    Sorry to hear what has happened, and I’m glad you chose to post to ask “What next?”

    Terryw has come up with the right answer – you need an adviser on your side who KNOWS the law. Only then you will learn what all of your options are, and can discuss all of the other “What ifs” with them too. Even if it costs a bit, it seems to me that their answers might save you from any mistakes that could conceivably set you back $20k or more.

    Good luck with it,
    Benny

    Profile photo of LewisLewis
    Participant
    @lewis062
    Join Date: 2015
    Post Count: 12

    Thanks Benny,
    I have sent my contract to a lawyer who specialises in this, and hopefully a positive outcome can occur.

    Thanks everyone for the advice.

    Profile photo of GiovanniGiovanni
    Participant
    @giovanni
    Join Date: 2004
    Post Count: 27

    even if you win the case, run away from this land… will only cause you troubles in the future. Plus the high tension electrical cables… need to be 5 kms away not to have any effect on you.

Viewing 20 posts - 1 through 20 (of 27 total)

You must be logged in to reply to this topic.