Are your Clients protected against the risk of Non-Compliant Building Work?
By Paul Watkins, General Counsel, Australia Stewart Title
The enforcement powers of Local Authorities to issue building notices and building orders for unapproved building work is a risk which is well known among settlement agents in Western Australia.
However, the issue of non-compliant building work also poses a significant risk, particularly as purchasers and their settlements agents may be lulled into a false sense of security if the Orders & Requisitions search discloses particulars of building permits issued for the property.
Even where your due diligence shows an approval history, the property as constructed may not comply with the property as approved. Similarly, some or all of the conditions relating to that approval may not have not been satisfied or complied with by the original owner/builder.
In this regard, much reliance is placed upon the role of the private registered building surveyor in issuing permits and final certifications for a property.
In circumstances where the conditions of a building permit have not been satisfied or complied with, the Local Authority will be entitled to enforcement notices and building orders to bring the property into compliance with the approvals. This may cause your clients significant financial loss.
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SOURCE: 24th October 2018 AICWA e-Newsletter