Mr Welch said purchasers of existing homes in estates with building covenants had also been caught out.
“There have been cases where people have bought homes and later found out they do not meet the building covenant of the estate and therefore require costly alterations,” he said.
“This may involve fixing certain parts of the home or knocking them down altogether.”
Mr Welch said in some estates homes actually needed to meet the standards of an architectural review committee.
“There have been instances where people have spent thousands of dollars on a top rate architect to design their dream home, only to find it doesn’t make the grade with the review committee,” he said.
“Therefore, it is imperative that those looking to build in estates with building covenants or architectural review committees have a keen understanding not just of the standard, but the style, of property required.”
Mr Welch said property owners also had to be careful when on-selling land in tightly controlled estates.
“In most cases, building covenants must be passed on to successors in title and therefore sellers have to be careful to pass on to the buyer the building covenants that apply to their estate if their contract with the developer requires them to do so,” he said.
“Failure to do so could leave the seller at risk of being sued by the developer.
“In the rush to sell properties at this time of the economic cycle these details can be over looked and, as most developers take building covenants very seriously, they will take action to enforce them.
“With an array of incentives currently being offered to first home buyers to encourage them to purchase in estates, inexperienced buyers should ensure the house and land package they are considering complies with any building covenants required.
”It is a good idea to seek proper legal advice so you know what you are getting into.”
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