When purchasing property, it's essential to understand the concept of encumbrances, as they can significantly affect how you use and manage your land. Encumbrances are legal claims or restrictions on a property that can impact its value, use, or transferability. Below is an explanation of the key types of encumbrances and what they mean for property owners.
Benefitting Easement: A benefitting easement grants the owner of a particular lot the right to use another person’s land for a specific purpose, even though they do not own that land. This means that the owner has the rights outlined in the easement agreement over the burdened property. Common examples of benefitting easements include easements for access or drainage.
Burdening Easement: A burdening easement is an easement that affects your lot by giving the owner of the benefitting land specific rights over the area of the easement on your property. This means you may not be allowed to build any structures on or over the easement area or use it in any way that interferes with the rights of the benefitting party. If you do, the owner of the benefitting land may have the right to take legal action against you or even remove the structure to access the easement, without being required to compensate you for any damages.
Building covenants, also known as estate covenants, land covenants, restrictive covenants, or development control by-laws, establish the rules governing the types of buildings and structures that can be constructed on the land. These covenants are typically created and enforced by the developer or body corporate from whom you are purchasing the land, such as in a master-planned estate. The terms of the covenant are included with the contract for your review, ensuring you are fully aware of the rules and restrictions you must adhere to.
A copy of the building covenants document should be provided to any architect, draftsmen, surveyors, builders, and trade contractors engaged prior to the commencement of construction work to ensure compliance with these covenants. If the covenant requires passing it on to future owners, it must be attached to the contract for sale when the property is sold to avoid breaching the agreement and risking legal action from the developer or body corporate. The Vegetation Management Act 1999 regulates the clearing of vegetation in Queensland, and a clearing permit may be needed before clearing protected native plants, although exemptions may apply.
It should be noted that there may be unregistered encumbrances and other government rights or interests that could affect the Property, such as sewerage or drainage lines on the Property, or rights reserved to government authorities. It is important to understand that not all of these unregistered encumbrances will be discovered through the searches conducted.
Disclaimer: Every property transaction is different, and the information provided may not be relevant to your circumstances. By using this site you agree that the information provided is for general purposes only and does not constitute legal, financial, or professional advice.
