Episode Transcript
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Speaker 1 (00:00):
We'll buying or selling a non compliant property. Now. Can
I feel like this has popped up, you know, tidbits
here and there in conversations we've had on the show before,
and in conversations you've had with other people just around
the place.
Speaker 2 (00:11):
Yeah.
Speaker 3 (00:11):
Absolutely, I know our regular guest Steve Lowe, he's spoken
about it before as well from the agent team. But yes,
this has come up the last couple of weeks when
I've been out and about speaking to real estate agents.
There is a recurring theme where agents are pulling their
hair out. Yes, like literally, well they're not literally pulling
their hair out, but it feels like they want to
(00:32):
do that because they're dealing with people in houses and
properties that have non compliant elements, and so some of
these elements pop up by surprise. Some of them they
know about, and it just makes the process. It's just
thing thing after thing that they've got to deal with.
Speaker 1 (00:47):
And there's already enough curveballs in the process of buying
and selling alone. And these things can be small things
or really big things.
Speaker 3 (00:55):
They really can, And some of the ones that I've
dealt with or had conversations with agents on the recently
have been big list like, how did that get through?
How is that now part of that.
Speaker 1 (01:05):
Structure fraught with danger?
Speaker 3 (01:07):
Can and it's non compliant?
Speaker 1 (01:09):
Yep, yep. Well, the man who'll be able to delve
into this with us Archie Zeromochus, partner at Envy Law. Archie,
good morning, good morning both. Now, look what might a
typical example of non compliance look like? It can vary,
karn't it? Well?
Speaker 2 (01:24):
You actually identified it began small. It could be, for example,
a converted garage. It could be an extension, but it
can be, for example, a pagola that's never been approved
depending on the size of the pagola, or it could
be an extension to a pagola. So it could be
all of those things. It could be fencing around a pool.
There's many many things that could be regarded as non compliant.
Speaker 3 (01:46):
And you got it exactly right there. There was one
a couple of weeks ago where the pool fencing and
there was just one small component of it and it
looked everything looked legal, but it wasn't by the book.
So there's just there's so many different verys, isn't there, Archie?
Speaker 2 (02:02):
There are? And look from a buyer's perspective, the challenges.
I'm trying to work through those issues, trying to understand
whether there's a risk for you as a buyer, and
whether you'd require the seller to rectify those things before
you actually purchase. It's normally disclosed, and this is one
of the advantages of the system we have where all
(02:23):
of those things need to be disclosed in to contract
these days, so you will know about it when you
look at the contract, when you inspect the property, and
the agent will to be aware of it and will be
cross those issues, and most good agents will be able
to talk both sellers and buyers through the challenges of
dealing with those things.
Speaker 1 (02:40):
Yeah, and Archie I was saying to the can before,
wondering who who does a responsibility fall on at the
end of the day, because you'd have so many families
and people who add on these things to their houses,
whether it be big or small, and just being none
the wiser about all these checks and approvals and things
you've got to get done. Who does that ownus? Does
(03:01):
that fall on the seller or the buyer, or the builder,
or who.
Speaker 2 (03:06):
All of the above in some senses when you're when
you're the seller, you will disclose that so the buyer
then takes on responsibility of taking on that non compliance
as part of the purchase. The challenge for buyers, though,
is does it affect for example, will will they be
faced with the government requiring rectification of that that not
(03:27):
non that issue? Or will they will affect your insurance?
Is it a fire risk for example? Depending on what
it is, is there significant rectification costs to get it
up and running? Do you need to engage an engineer
for example? Can it affect value? There are many many
things to take into account for a buyer's perspective, and
it really comes back to the point that you made
(03:48):
early on RENEE, which is some of some of bigger,
some small. The big issues are obviously will be will
affect all of those things I've just mentioned, but the
small issues might be some that you just say, well,
that's okay. So so it's simply an extension to a pergola,
that's not a problem. But what if that pagola falls
down and someone's hurts what happens with that? That's where
(04:09):
the issue really comes to light.
Speaker 3 (04:11):
Oie. We know that you're highly experienced in ticketed lawyer,
so we have to be careful about dishing out official
advice here on the show. However, what would your number
one tip be to anyone who is dealing with one
of these issues at the moment.
Speaker 2 (04:26):
Really understand the issue, Understand the problem, and understand whether
that issue can be rectified by the seller prior to
you settling on the property or if the seller is
not prepared to do that. Understanding what it means to
you and the costs, the risk, and what you need
to do in order to get around the issue long term,
(04:47):
because obviously if you're going to resell, you'd want that
issue rectified in the end.
Speaker 1 (04:53):
Yeah, and like you said, cost is another thing. I
can't imagine it's going to be a cheap exercise to
get all that stuff sorted.
Speaker 2 (04:59):
Archie, Well, it's not just cost, it's also the risk.
For example, if you if a garage is say converted
into a bedroom and there's no the right insulation or
some issue like that, and there's a fire, that will
affect potentially your insurance and whether your insurance will cover
you'll if somebody's hurt, that will obviously be a potential issue.
(05:23):
For example, if you haven't got a fence around the pool,
if a child comes into the backyard, and it goes
into the pool and falls in and hurts themselves or worse.
They're all issues which will affect both your responsibility from
a financial point of view, but your responsibility as a
citizen who wants to do the right thing by people
around them.
Speaker 1 (05:43):
Yeah, absolutely, all right, Archie. Well, lots of factors of
people to consider there, but like you say, just important
to be across the problem and go from their Thanks.
Speaker 3 (05:51):
Every time Archie joins us on the show, he just
says a little bit of class, doesn't he.
Speaker 1 (05:55):
We always learned that.
Speaker 3 (05:56):
So interesting. Yeah, sitting here listening to you, Archie, thanks
for joining us.
Speaker 2 (06:00):
Thank you, you're the best. Both of you. Have a
great day, Archie.
Speaker 1 (06:03):
Thanks Archie. That's Archie seramocus partner at m V Law.
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