When you look at the dynamics around sourcing a property for extended family including those that may be elderly or disabled, granny flats often come into play! Their demand is escalating given rising living costs and the accelerating lack of affordable housing for the vulnerable.
When you list a property with a granny flat or a home that has the potential to have this added on, please carefully consider the legal framework that surrounds the scenario to ensure you are providing your clients with the most unsurpassed advice you can give:
1. Permits: Ensure that the granny flat structure is constructed legally, approved and any relevant certifications, approvals are obtained from the onset.
2. Zoning: Check with the relevant council as they will have the requirements for size, location and any restrictions placed on the occupancy of a granny flat.
3. Tenancy: If it is the intention of the parties to rent the granny flat, ensure that you are up to speed on the relevant tenancy laws in respect to terms, and landlord and tenant responsibilities. This will assist to avoid any legal disputes in the future.
4. Tax: Renting a granny flat even to family may give rise to tax implications, it is important to advise your client of the probable tax responsibilities associated with a rental income and the subsequent deductions.
5. Insurance: An added dwelling will often require further building insurance protection to protect both the primary dwelling and the granny flat against loss. Always try to canvas this point with the registered owners.
6. Sellers ongoing Disclosure: As you are aware there is significant onus on the sellers, however as the agent you must disclose the existence of the granny flat to potential buyers or tenants to avoid possible legal recourse further down the track.
Keep up to date on the latest trends and legal implications that revolve around granny flats, you can greatly assist your clients by helping them understand the legal framework and local legislative/council requirements for their protection across the sale and purchase process.
To discuss this in more detail, please reach out to Kerri Tucker on 07 3999 9751 or email legal@holzworth.com.au
