When considering buying land, it is important to check if 173 agreements are registered on the title. This way you can see what the restrictions are before you buy. Some councils have their own in-house lawyer who can prepare the agreement for you for a fee. For example, Frankston City Council offers this service. Alternatively, you can use a lawyer you choose to develop the agreement. It`s a service we offer. Dear Guest, Thanks for your informative article re: Section 173 Accords. I have a question you may not know. I`m in the process of buying a student apartment (one bedroom) in Hawthorn, which has an S173 in place. My wife is a real estate manager, and we thought we could do it ourselves as long as we only rented it to students. Existing property managers (Student Housing Australia) say we can`t do that because we don`t have a student management plan with the council and we should actually use it. Do you know if it`s good or are you trying to scare us, to use them? An agreement is like any other contract.
It must be negotiated and agreed upon by all parties involved. Sometimes an agreement under Section 173 may be required through a planning scheme or authorization. If this is the case, it must be completed before beginning an evolution. But everyone still has the right to negotiate the agreement. It is a good idea to have a lawyer represented in these negotiations. Once the contract is registered, anyone who searches the property, as a potential buyer, will be able to see it. When purchasing the land, the new owners are also bound by the terms of the contract, even if their names are not included in the contract. Anyone who occupies the country will also be bound by the s173 agreement.
In the section 173 agreement, it may end. Typically, it`s when something happens or on a given date. If it does not say when it will end, it can only be lifted if anyone party to the Agreement agrees to amend it. A council may also enter into a s173 agreement with someone who may own the country in the future. This will allow the Council to make future planning decisions, but the agreement will not limit the current owners of the land. The Commission must ask the Registrar of Titles to record a property agreement pursuant to Section 173. Before the contract can be registered, anyone who has given a mortgage on the country must also accept that it is registered. This may include a bank or financial institution. If the country is divided, parts of the country can be sold or transferred. If that happens, the agreement will remain intact, but anyone who buys part of the divided country will also be part of the agreement. As long as the Council and the owner (or future owner) of the land are part of the agreement, other organizations or individuals may also be involved in the agreement.
It may be added: with an agreement under Section 173 under the Planning and Environment Act 1987, a Council may limit the way a sub-divider will use the surfaces in the future.