NSW Council Warning for 3rd Bedroom - Recourse?

[John Kim]

Hi there,

3 years ago, I bought my first apartment at the age of 27. At the time, the real estate agent sold this to me as a 3 bedroom apartment. It's very spacious and as the study has a window and it's own normal bedroom door, I did not even doubt for a second that this was not a 3 bedroom apartment.

A year later, I received a letter from the council warning that the third bedroom is a study and that no tenants should be sleeping there. This was a major shock to me and I did not know how to respond. My conveyancer/solicitor at the time strongly recommended me not to take any action which I believe was out of his own fears in case he had done anything wrong.

Since then I discovered there are records with the council having issued such notice to the previous vendor, and I was told at the point of sale that the agent selling the property had sold it to the vendor previously and has managed it for many years (whether this is true or not). I have sent two letter of demands but these have been ignored by them.

I was wondering what type of remedy I have here and whether my case is a strong one?

Looking forward to hearing your expert opinions.

Thanks.

Regards

 

[Rod]

What do you want as a remedy?

What damage has it caused to you?

 

[John Kim]

What do you want as a remedy?

What damage has it caused to you?

I believe i was tricked into paying a 3 bedroom price for the property, and there is a substantial difference in value between a 2 bed + study as opposed to a 3 bedroom. I would ideally like a compensation for the difference.

 

[Rod]

Misrepresentation may have occurred, probably is enforceable if proven to the satisfaction of a court.

Keep in mind I don't know what was in your other two demand letters:

If it was me in this situation and I wanted to enforce my rights (ie prepared to go to court) and pay money to enforce them, I get a professional valuation done comparing the two types (2br+Study and 3br) at time of purchase and today.

Then I'd send a demand letter (possibly prepared by a lawyer), see what can be negotiated (maybe accept a payment plan), and if that failed, hire a lawyer and go to court.

The council ruling is crucial to the above. You'd want to be sure the council is allowed to make the ruling they have else you'd likely lose your case and pay the other party's costs. I have no idea if the council has the authority to make the ruling you say it has made.

If the other party refuses to co-operate the situation will take both time and money to fix - if it can be fixed at all.

 

[John Kim]

Misrepresentation may have occurred, probably is enforceable if proven to the satisfaction of a court.

Keep in mind I don't know what was in your other two demand letters:

If it was me in this situation and I wanted to enforce my rights (ie prepared to go to court) and pay money to enforce them, I get a professional valuation done comparing the two types (2br+Study and 3br) at time of purchase and today.

Then I'd send a demand letter (possibly prepared by a lawyer), see what can be negotiated (maybe accept a payment plan), and if that failed, hire a lawyer and go to court.

The council ruling is crucial to the above. You'd want to be sure the council is allowed to make the ruling they have else you'd likely lose your case and pay the other party's costs. I have no idea if the council has the authority to make the ruling you say it has made.

If the other party refuses to co-operate the situation will take both time and money to fix - if it can be fixed at all.

Thanks for your comment!