Recovery of Cost for K&G where property sold

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  • #20324
    Maria Devoti
    Participant

      Coffs Harbour City

      Hi all,

      Council advised owners of K&G works to be carried out and the estimated costs to be charged in January. Between then and the date of the invoice being issued the property has been sold. No notification was provided to the new owner. Can Council recover the costs from the new owner?

      Thanks in advance for any comments.

      Maria

      #20327
      Simone Fisher
      Participant

        Wollondilly

        Hi Maria, my understanding is that K&G works are property debts & if works have been completed unless the debt was displayed on the 603 certificate (presuming one was ordered) it wouldn’t be recoverable from the new owner.
        Interested in other opinions though.
        Thanks,
        Simone

        #20326
        Ian Clayton
        Participant

          Mid-Western Regional

          Hi Maria,
          If an invoice has issued to the new owners, I think they are liable.
          Sec 217 (1) & (3) of The Roads Act make it pretty clear the “owner” has to pay. There also doesn’t seem to be any requirement to give notice of the estimate (though I agree that’s good practice).
          Thanks
          Ian

          #20325
          Ron Peters
          Participant

            Hi Maria,

            By ‘notification’ do you mean a 603 Certificate was issued but the 603 certificate did not show the K&G costs? If so, then we suggest the answer to your question may depend on the timing of the work the cost being recoverable, see s603 (3) (c) of the Act.

            As Simone suggests above, which one of the following 2 cases applies:

            Either – if at the time of the S603 certificate the K&G work had NOT been carried out on the land by the council and the cost was NOT recoverable from the owner or occupier for the work – then the new owner will be liable to pay the costs.

            Or – if at the time of the S603 certificate the K&G work had indeed been carried out on the land by the council and the cost was already recoverable from the owner – then the new owner would have a case to argue for no liability.

            If the later case applies, then to be pragmatic the size of the K&D debt might guide the action you take; if the debt is small you may wish to write it off, or if it is substantial we would normally give more formal legal advice.

            If the former case is true, then we would agree with Ian that the new owners are liable. We manage a similar matter where an owner was charged for K&G. The owner then sold the property to his parents (without a 603 certificate) apparently hoping to avoid payment of the debt. The new owners/parents have been invoiced for the debt and are now paying under a payment arrangement offered by Council.

            Best wishes

            Richard McLean
            0434 222 032

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