One property 2 dwellings

[Paul j F]

We recently bought a reno in Melb. that has a second dwelling extension. Literally a 2 bed 1 bath added on out the back with kitchenette. There is a door that joins the two dwellings and other than the fact a cupboard has been built across the door the two are technically one dwelling, share HW and not separately metered.

Rather than opening it up we are now considering closing them off properly but they will still share HW and be on one meter then renting them out separately with utilities included in rent.

Does anyone see an issue with this, what a are the legalities eg. No technical firewall between dwellings. ? Complications ?

 

[Brady]

I would say ring the council, except you might find that this extention wasnt council approved

 

[Aaron_C]

Depends on the zoning. As Brady said, chances are these type of extensions were never council approved. The rules on dual-occ are a bit of a mess. It's mainly important if you are trying to subdivide the property since in that case you definitely need council permission. If you are just renting it out, most people probably will not check or raise it with council until one of the tenants starts making noises and neighbours complain.

 

[Paul j F]

We've submitted a plan search to council. I personally believe the way that it is done that it was originally approved as a simple extension, not a second dwelling. I was thinking along the lines of just renting them out after a bit of a make over. There's a tenant currently in the front dwelling, and think that they have rented both at some stage regardless of council regulations.

 

[Dave_R]

Perhaps a situation where title insurance may have been useful?

http://stewartau.com/public//ResidentialPurchaser.html

Got this with my last purchase, recommended through the conveyancer, since there were one or two extensions we weren't sure were council approved. Peace of mind at least.

 

[travelbug]

We've submitted a plan search to council. I personally believe the way that it is done that it was originally approved as a simple extension, not a second dwelling. I was thinking along the lines of just renting them out after a bit of a make over. There's a tenant currently in the front dwelling, and think that they have rented both at some stage regardless of council regulations.

"just" renting them out after a bit of a makover could land you in hot water.

If you don't have a firewall and there is an issue your insurance won't cover you AND you could be sued.

What if someone gets injured. You risk losing EVERYTHING you own.
Not worth it in my opinion.

 

[Paul j F]

Travelbug... Thanks. I have always been risk aware and the property is in my name, so not sure why I considered it.. $$$ I guess.

Dave R.... Really .. Title insurance! I have never heard of this and its in the memory bank..Thanks! While in this case I am sure that the extension is approved, just not as a second dwelling. It would be really interesting to test the waters on that one. If I buy a property under the impression that it's two dwellings as it was advertised as such. Approved structure YES, approved as second dwelling NO. That's one for another thread.

I'll wait for plans and occupancy permit search to come back from council.

 

[Dylan33]

You're better off doing it the right way. Chances are it won't work out that much more expensive and what's more, what price do you put on peace of mind?

 

[virgo]

Insurance

Hi Paul

I have a similar dwelling set up like this in Sydney...i have insurance with Allianz...i have disclosed it is an unauthorised dual occupancy and they have accepted it