From 30 September 2019, Subsidence Advisory NSW (formaly known as the Mine Subsidence Board) are no longer issuing certificates under section 15B and section 15C of the Mine Subsidence Compensation Act 1961 (repealed) for properties in Mine Subsidence Districts. The new legislation that is relevant for those buying property in a Mine Subsidence Area is the Coal Mine Subsidence Compensation Act 2017.
Formal release from Subsidence Advisory NSW:
https://www.subsidenceadvisory.nsw.gov.au/buying-property
What does this mean for purchasers of residential property in NSW?
As part of the investigations into a property, it will be important to enquire about any structural work done on the property and to determine if any development application were approved by the appropriate authorities and, where applicable, did certificates of occupation issue for any relevant building works.
Beware! If you buy a property where there have been unapproved building works done by previous owners and the property is in a Mine Subsidence Area, you MAY NOT be able to make a claim… any claim for compensation would be at the discretion of Subsidence Advisory NSW.
Additional protection available
We’ve mentioned the benefits of getting a Title Insurance policy prior to settling on your purchase before. This remains a great way to get additional levels of protection for a wide range of unknown problems that may arise.
https://www.stevensconveyancing.com.au/news/2019/1/22/title-insurance-for-your-property-purchase
https://www.stevensconveyancing.com.au/news/2019/5/27/title-insurance-case-studies
It’s important to note that Title Insurance claims related to unapproved works require a Council Order to be issued on the property.
Unapproved works and mine subsidence claims
The unanswered (and untested) question relates to what Subsidence Advisory NSW will do regarding claims involving unapproved structures going forward.
If you are an unwitting purchaser of a non-compliant property, you may still be entitled to claim, however the result remains at the discretion of Subsidence Advisory NSW. You will just need to provide evidence enquiries were made to try and obtain as much information about the property as possible when buying the property.
Based on statistics provided by Subsidence Advisory…
“Out of approximately 140,000 properties in mine subsidence districts, only approximately 150 properties are found to be impacted by subsidence each year. In the last ten years, records show only four claims for homes were refused due to non-compliant developments.”
So, what does this mean for a purchaser?
Statistically speaking, the odds of something happening remain low and Subsidence Advisory NSW are adjusting policies and processes based on their experiences.
Doing due diligence is still the order of the day. From your research you will be as informed as possible, prior to commitment.
With around 140,000 homes in Mine Subsidence districts and approximately 30% possibly having unapproved works, it would not be considered uncommon for the 2 elements to be combined in a property you are looking at.
If you have any questions about your situation, contact me via leah@stevensconveyancing.com.au or call 0414 894 031 to discuss.
Please note that the information contained in this article is of a general nature only and does not constitute legal advice. Stevens Conveyancing does not take responsibility for any errors or omissions obtained from the use of this information.