A Matter of Land | Help me! I am encroaching on the common area

Good day, readers. Today we respond to another question from a reader.

Good day Mr Francis,

I have always read your articles, but never knew that I would be one of the persons who would be writing you.

I have a problem that I really need to be sorted out soon. I have been living in what I thought was a town house complex for several years. It is owned by a relative who resides overseas.

Recently, that relative offered to sell me the house for a price way below the market value as she really wants to help me to be homeowner and she has other properties.

My problem is that when I commissioned a land surveyor to do a report to take to the bank he found that the property was in serious breach. The house was not a town house and it was not a town house complex. It is instead a strata complex.

That means that an addition that my relative did to the building is now encroaching on the common property. This has caused the sale to stall, as neither the bank nor any other agency is prepared to lend me the money to complete purchase.

Can you please advise me on how can I move forward? I spoke to someone and was told that the entire strata plan has to be redone. This is not possible as the cost is prohibitive and not in my scope.

Please help me.

Regards,

Kim

Good day Kim,

Thank you for your continued support of A Matter of Land.

The problem you're facing now with regard to the property is not a new one.

The advice that you were given as to redoing the strata plan is a solution but it is a very difficult and costly one. I have a much easier, quicker and more cost-effective solution for you.

 

Get a lease!

 

You can lease the property that the extension of the building has encroached on in the common property. To acquire the lease, first you have to seek permission from your strata corporation.

It has to be agreed upon at a meeting of the strata owners. You will then need to have a land surveyor survey the area that you require the lease for.

You should try to get as long a lease as is possible, maybe something like 999 years. Once you have acquired the lease for the area you will be able to have a new surveyor's report done that will show that you are no longer encroaching on the common area, and as such will be able to obtain a loan from the lending agency of your choice.

I suggest you start this process now as it may take some time.

Until next time, traverse well.

It's that time of the year again when we do free presentations to companies and organisations. We will begin mid-October, so companies who are interested in us making presentations on land surveying, valuation and real estate matters, including mortgages, contact us now.

- Craig Francis is a commissioned land surveyor and managing director of Precision Surveying Services Ltd. He can be contacted for questions or queries at craig_r_francis@yahoo.com or Precision Surveying Services