If you’re buying or selling a property which is located on a canal in the Gold Coast City Council area then it is important to consider the impact of a recent decision by the Council that imposes a new legal obligation on property owners with a pontoon or jetty.
Clause 15 of Local Law No. 17 imposes an obligation for a clause to be inserted into any contract for the sale of the property. It is a legal obligation for any seller who enters into a Contract to include a clause, which states or specifies the following:
- (a) The Contract is a Contract to which this section applies;
- (b) The actual specified prescribed work (the actual specified work) that is completely or partly situated on or which is connected to the relevant lot; and
- (c) Under this Local Law a person who is responsible is a responsible person for the specified prescribed work is, at the person’s cost, required to maintain and keep the specified prescribed work in:
- (i) A safe condition; and
- (ii) Good working order, repair and condition including so that the prescribed work can continue to perform its intended function; and
- (d) Whether or not there is an outstanding notice issued by Local Government and that this Local Law is in relation to the actual specified work and if so the contents of that notice.
If this clause is not inserted then a buyer can terminate the Contract by notice in writing to the Seller at any time prior to settlement and the Seller must refund any amounts paid by the buyer towards the purchase of the property. In addition there Seller can also face a penalty for non-compliance.
Therefore prior to signing a Contract for purchase both buyers and sellers should check that such a Clause is inserted.