VIC Is the vendor obliged to disclose a carport built without a permit?

[Lana A.]

Hi there,

I'm in a bit of a pickle. Bought a property recently and it wasn't disclosed that a carport was built without a permit. Council recently came around saying that I either need to take it down or get permits for it.

Wasn't the vendor obliged to disclose that the carport was built without permits in the vendor's statement / contract of sale? I have been doing some research and understansd that hwilst it is my responsibility to check for the quality and suitability of goods before a purchase is made (caveat emptor), I think that the vendor stil must disclose this information under caveat venditor.

Can someone clarify this for me?

Can I pursue the vendors for misrepresentation?

 

[Luiza]

The vendors don't need to disclose the lack of permits. Your conveyancer should have advised you to inspect the property and make enquiries with the Council before you signed the contract. I guess you didn't purchase title insurance at the time?

 

[Rod]

When was the carport put up? If <7 yrs ago it should have been disclosed in the section 32.

What to do next? Depends on what is easier to fix, the council ruling, or getting money back from the seller. I'm thinking that challenging the council ruling may be simpler, and at a minimum get more information from the council. What section of what regulation are they quoting? Did they notify the seller at any time, if yes, when? What is involved in getting a permit? Why didn't they notify the seller at time of section 32 request?

Getting money out of the seller is problematic and until you know what costs are involved no point going down that path yet. Tackle the council first - if you can't challenge the ruling, then work out the best way of fixing the problem.

re: Caveat Venditor. I'm not a real estate legal expert and can't find/see how it can used in your situation. This term is outdated, very rarely used from what I can tell, let alone on a property transaction. Most seller beware obligations are largely governed by consumer laws these days so look to the statute law for a remedy.

 

[Luiza]

When was the carport put up? If <7 yrs ago it should have been disclosed in the section 32.

What to do next? Depends on what is easier to fix, the council ruling, or getting money back from the seller. I'm thinking that challenging the council ruling may be simpler, and at a minimum get more information from the council. What section of what regulation are they quoting? Did they notify the seller at any time, if yes, when? What is involved in getting a permit? Why didn't they notify the seller at time of section 32 request?

Getting money out of the seller is problematic and until you know what costs are involved no point going down that path yet. Tackle the council first - if you can't challenge the ruling, then work out the best way of fixing the problem.

re: Caveat Venditor. I'm not a real estate legal expert and can't find/see how it can used in your situation. This term is outdated, very rarely used from what I can tell, let alone on a property transaction. Most seller beware obligations are largely governed by consumer laws these days so look to the statute law for a remedy.

Can't agree with your advice... The vendors obligation is to disclose any permits issued in the last 7 years. There is no obligation to disclose illegal building work. And there is no recourse for misleading or deceptive conduct against the agent unless they specifically stated that there was permit issued for the carport. Lana, you may potentially be able to sue your solicitor for negligence, that's all.

 

[Rod]

I agree, disclose all permits is what I meant.

However some remedies may be available. S 32D Sale of Land Act Vic may apply if the seller had prior notice from the council.

But no need to go down this path as yet. Council first. Then re-evaluate after the council issue is solved.

 

[Lana A.]

Thank you both for your guidance.

I'll speak to the Council before panicking!

Much appreciated!

 

[Rod]

Yes, as you appear to have settled on the property there is no immediate urgency re: Vendor obligations - other than maybe tracking them down to a new location or if they intend moving overseas.

 

[IceDragon]

I did reserch recently, The vendor has obligation to discuss any building work finished with 6 years and 6 month in the different forms for owner builder and registered builder respectively. If Vendor failed to do so, the buyer can terminate contract anytime before settlement. This information can be found on LIV(Law Institute of Victoria) web page.

Also, the council search would provide the building works without permit as council has no knowledge. But illegal building structures are material facts and vendor must disclose!

 

[IceDragon]

Hi there,

I'm in a bit of a pickle. Bought a property recently and it wasn't disclosed that a carport was built without a permit. Council recently came around saying that I either need to take it down or get permits for it.

Wasn't the vendor obliged to disclose that the carport was built without permits in the vendor's statement / contract of sale? I have been doing some research and understansd that hwilst it is my responsibility to check for the quality and suitability of goods before a purchase is made (caveat emptor), I think that the vendor stil must disclose this information under caveat venditor.

Can someone clarify this for me?

Can I pursue the vendors for misrepresentation?

I did reserch recently, The vendor has obligation to discuss any building work finished with 6 years and 6 month in the different forms for owner builder and registered builder respectively. If Vendor failed to do so, the buyer can terminate contract anytime before settlement. This information can be found on LIV(Law Institute of Victoria) web page.

Also, the council search would provide the building works without permit as council has no knowledge. But illegal building structures are material facts and vendor must disclose!