New laws affect the sale of waterfront properties
Tuesday July 9th 2013
Last Friday the Gold Coast City Council passed a new Local Law number 17 (Maintenance of Works in Waterway Areas). The law imposes additional disclosure requirements for people selling waterfront properties which contain or are connected to revetment walls, training walls, jetties and pontoons (see section below for further details and special condition).
Local Law 17 establishes a framework for the maintenance and repair of works located in waterways in the Gold Coast region.
The law attaches repair and responsibility obligations to owners of properties which contain or are connected to or (in some cases) receive the benefit of waterway works, including a revetment wall, training wall, jetty or pontoon.
Some examples of these maintenance obligations include:-
(a) a property owner will be responsible for repairing and maintaining a revetment wall if the wall is completely or partly on their land; and
(b) a waterfront property owner who benefits from a pontoon in a tidal river will be responsible for repairing and maintaining the pontoon.
New disclosure required for residential contracts
Properties that are likely to be affected are those which contain or are connected to:
– a revetment wall;
– a training wall;
– a jetty; and/or
– a pontoon.
The Seller of an affected property is required to include the following disclosure in the Contract:-
(i) that Local Law 17 applies to the Property and setting out details of the works;
(ii) that the Buyer may have an obligation to maintain the works and details of that repair/maintenance obligation; and
(iii) whether there any outstanding notices issued by Council in relation to the works.
To assist Gold Coast selling agents, KRG have prepared a special condition which may be used where disclosure is required. Visit the Special Conditions section of KRG to view.
KRG encourage you to consider the requirement to include this special condition when selling a property which contains or is connected to a revetment wall, training wall, jetty or pontoon.
If the Seller fails to make the required disclosure, the Buyer has a statutory right to terminate the Contract at any time up until Settlement.
The Seller may also be liable for a fine of up to $3,750.
Click here for further information issued by the Gold Coast City Council.
There is no substitute for obtaining legal advice which is specific to your client’s needs. Contact KRG Conveyancing on 1300 132 088 to to obtain pre-contractual advice from their experienced lawyers free of charge. Article courtesy of KRG.