Be aware of your obligations under the Planning Act

A DUE diligence clause should be included in real estate contracts, particularly if the property is subject to a proposed development, says leading legal firm Creevey Russell Lawyers.

Creevey Russell Partner Damian Bell said consideration should be given to what the intended use of the property will be as town planning schemes govern what is an acceptable use of property within certain areas.

"A due diligence clause should be included in the contract so there is an opportunity to investigate whether the current use of the property is lawful," Mr Bell said.

"Enquiries need to be made on whether the proposed development will be considered accepted development, assessable development or prohibited development under the Planning Act.

"Accepted development is development for which a development approval is not required, whereas, assessable development requires a development approval and will be either code or impact assessable.

"If a due diligence clause has been included in the contract then investigations should be undertaken to ascertain whether the property is suitable for the intended use.

"Undertaking these enquiries will assist with having a greater understanding if the intended development or use will be consistent with the town planning scheme."

Property Team Lawyer Cameron Hagan said other considerations will include the relevant zoning, the boundaries and size of the property and whether any encroachments, registered easements or other unregistered interest that may affect any plans for its intended use.

"We encourage anyone who is unsure of what their obligations are under the Planning Act or requires assistance with undertaking due diligence enquiries to contact the Property Team at Creevey Russell Lawyers to obtain further advice tailored to your individual circumstances."