|
It’s always wise to check out what you’re liable for and that’s where the encumbrances come into play. These are the liabilities and obligations that are part and parcel of a particular piece of land. They’re always noted on the Certificate of Title and your solicitor will check this on your behalf, usually in the 10 days (or as specified in the agreement) after signing the contract, which is the time you have to decide if you can continue with the sale or not. If you are not afraid to lose the property to another buyer you can do this check before you sign the contract.
There could also be an easement over the land. This is a right over, or given to, land as noted on the Certificate of Title, for example the city council may have an easement over a property to drain storm water.
A fencing covenant on the Certificate of Title is common when you buy land from a developer, because under the Fencing Act, adjoining properties must contribute equally to the cost of a fence. With the protection of the fencing covenant the developer doesn’t have to pay for fencing. The life of this covenant is only 12 years then it expires.
Covenants are important to note when buying bare land, as these are often used to specify the type, value and aesthetic qualities of the properties to be built in the area.
|
