Two hundred and five Sydney property owners face an agonising decision on what to do with their purchase because of bad information given by the State Land and Property Information Office. Between 2014 and 2016 critical information on changes to what is the route of the F-6 dual carriageway divided new road from Sutherland to Tempe was not loaded into the LPI computer and consequently those doing property searches were not warned that their property might be affected. The state government has admitted liability and is offering compensation.
This takes the form of settlement by way of a thirty thousand dollar compensation payment - or an offer to buy back the property - in which case the government will refund the purchase price, plus a grant of $ 75,000 and fully reimburse the stamp duty costs.
No doubt the people affected will be doing copious calculations on the back of envelopes. The Sydney property market has moved a long way forward during that period and they will need to determine the present value, taking into account that the proximity of the new road will be a factor taken into account by potential buyers.
A lot will depend on the degree of involvement. Should the property seem likely to be resumed and demolished to make way for the new road extension the decision is obvious, but if it is just a matter of road traffic noise or a long circuit drive to access this new freeway the site advantages - and disadvantages - will weight heavily. There is also the possibility that proximity to a fast route to the city centre may enhance the property value.
That LPI blunder will cost the state a lot of money. There are another 377 properties affected by the building of a tunnel on a section of the West Connex who received incorrect information. This is subject to negotiation and so far the government has made an offer of $ 5,000 each, plus legal costs as compensation. It is possible that this may be rejected and the matter returned to court.
What all this highlights is the necessity for the Land and Property Information office to scrupulously seek out and record all relevant information that may affect the freehold of property. Many potential buyers considering placing a bid at a property auction first pay for a property search which should disclose any intended future events that infringe on its use. That includes the presence of any pipes or tunnels that may pass under the property or wiring that may intrude on the airway overhead. Such a clearance confirmation also forms part of property conveyance.
A property purchase is usually the biggest money transaction in each persons lifetime and consequently it is not taken lightly. It is to the government's credit that they have quickly accepted responsibility and acted to make sensible offers. Now it is essential that the checks and balances are put in place to ensure that it can not happen again !
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