I was asked recently to provide a Building Insurance Valuation for an Owners Corporation which had eight strata villa units. The inspection was straightforward, I thought. All the check measurements and connecting nodes were confirmed, the laser from my Bosch was bouncing off the walls and fences with clear HD precision. There were no dog's off-leash, no yelling tenants. The sun was even shining - it was a cracker of a day in Melbourne.
However, my investigations with the local council, online cadastral maps, VIC Roads and subsequently their MSE Planning Team identified something potentially unrelenting.
Lot 1 and 6's building footprints were overlapped by a POA4 Overlay - a Public Acquisition Overlay!
My immediate thoughts were:
In the event of a partial or total loss on the property, will VICRoads (the acquiring authority) support an application to rebuild on the site with the apparent POA4 now in place, and asymmetrically aligned with the building footprints.
Will there be compensation paid or has it already recorded on Title?
VICRoads and their MSE Planning Team, who were the Acquiring Authority responded along the line of:
VicRoads will not support an application to construct a building over the above PAO, whatever circumstances that may be.
No compensation has been paid however our records are not exhaustive. The Property Valuer will need to check the original copy of the Certificate of title to see if any notifications are recorded on Title, which is standard practice.
The Owners Corporation (OC) Manager who ordered the Building Replacement Valuation was was extremely grateful. A few calls were made to the homeowners, their Insurers and Insurance Brokers informing them of the findings. Problem solved.
It helps to pay close attention to the Zoning and Overlays within a property. Ignore them at your peril. A competent Certified Practising Valuer (CPV) should be your preferred supplier of Insurance Valuations. We are trained to pick up anomalies and risks associated with a property.
Our team of experts at DELPHi is here to assist you. Contact any of our offices:
Melbourne: Phone: (03) 9706 7940, Email: melbourne@delphiproperty.com.au
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Perth: Phone: (08) 6720 2439, Email: perth@delphiproperty.com.au
Or visit our website at Delphi Property. Our team of experienced professionals is here to help you navigate your SMSF property needs with confidence.