Real Estate Investor Magazine August 2024 edition | Page 11

The seller isn ’ t obliged to supply proof ( and plans ) to you , unless …
Your risk as a buyer is that the seller is only obliged to supply proof of planning permission and approved plans to you if that is specifically required by the sale agreement . Ideally you must always ask for plans before you put your offer in , otherwise insist on a clear clause in the agreement requiring the seller to produce the plans before transfer . It ’ s the only way to avoid the risk of having to rectify unlawful structures .
Make sure it is clear that the seller ( not you ) must get and produce the plans
A 2023 High Court decision addressed a claim by buyers who had at the negotiation stage noticed newly erected buildings in respect of which they were advised that building plans were at the ‘ approval stage ’ with the municipality . Accordingly , the sale agreement provided that the sale was subject to approval of building plans by the municipality . What the deed of sale did not specify was who had to get the plan approval – was it the buyer , or the seller ? The Court ultimately declared the seller responsible for obtaining the plans on the basis that by default only a landowner can apply for approval and plans , but that victory for the buyer came only after a hard-fought court battle . You can avoid all those delays , cost and disputes with an upfront clause clearly putting the obligation on the seller .

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