Off-The-Plan Investment Property - Got This in The Mail - Do Not Understand

tunaroll123 on 20/10/2015 - 10:13

Hi everybody,

I'm asking on behalf a really good mate of mine who recently invested in an off-the-plan property in a quiet suburb of Victoria.

A bit of background. It's already behind schedule and he's not happy to be paying rates (Water and council) when all the property has right now is the concrete foundation. And now he's received this in the mail [an excerpt]:

No: XXXXXX/XXXX/X
Land: LOT: XXX: XXXXXXX
Proposal: Variation of restrictive covenant in instrument of transfer XXXXX of Certificate of Title Volume XXXX Folio XXXX in respect of Clause 1(ii) by the inclusion of the words 'Other than Lot X on XXXXXX 'before the word 'For'.

It then goes on a little about the Council receiving this application for planning permit and that before it makes a decision, it has decided to notify my mate to see if he objects. Problem is, he doesn't even know how it affects him. Can anyone explain what this is in plain English?

Thank you in advance!

Financial

Comments

  • aggregate on 20/10/2015 - 11:22

    Speak with a lawyer. The variation is either making someone better off, or making a lot of people worse off.

    • tunaroll123 on 29/10/2015 - 16:58

      Gotcha - thanks for the advice.

  • Steptoe on 20/10/2015 - 13:26

    Single dwelling?

    What covenants are on the land he purchased?

    Someone is seeking to remove a restriction on the land they purchased, or will purchase if the covenant is removed.

    Quick Google found this pdf that may help

    • tunaroll123 on 29/10/2015 - 16:59

      That pdf helps - it's all very new to him. He doesn't have much of a clue why there will even be a "variation" but he's getting professional advice now.

  • Baysew on 24/10/2015 - 13:36

    Speak with the council.

    • tunaroll123 on 29/10/2015 - 17:00

      As in approach the council and just call them up?

      • Baysew on 30/10/2015 - 09:04

        Yes. The council will explain what it all means and what action your mate can take.

        The letter sounds really formal. Speak to a person or make an appointment to see someone at the council.

  • grasstown on 27/10/2015 - 22:56

    I'd say you will need to see the original

    restrictive covenant in instrument of transfer XXXXX of Certificate of Title Volume XXXX Folio XXXX

    Get it from council

    Once you have it, look at Clause 1(ii) and insert the words 'Other than Lot X on XXXXXX 'before the word 'For'.

    If you can't understand the new clause with the new words, get a lawyer I guess. If it's unfair get a lawyer I guess

    • tunaroll123 on 29/10/2015 - 17:01

      Yeah, that's what I advised him to do in terms of seeing the original. He's trying to find it, it's been a while since he signed it and put it away somewhere.

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