Although a rural lifestyle is an attractive option for many prospective purchasers, it is important to know that a prudent purchaser should complete additional due diligence prior to committing to purchasing. Rural land in the ACT consists largely of long-term rural leases rather than freehold land.
While there are many additional enquiries that a purchaser can undertake in the ACT, particularly regarding rural leases, we outline some of the more common below:
In the ACT, responsibility for controlling declared pests arises under the Pest Plants and Animals Act 2005 (ACT). Landholders must control declared weeds such as serrated tussock, African lovegrass and blackberry. Purchasers should inspect the land and make enquiries with ACT Environment, Planning and Sustainable Development Directorate.
Water access entitlements in the ACT operate under the Water Resources Act 2007 (ACT). Any water access entitlements must be transferred separately from land. Your solicitor can search ACT registers for associated water entitlements.
ACT rural land is usually subject to long-term Crown rural leases. Many agistment or grazing arrangements on ACT rural leases remain informal. Rural land purchasers should request full details of any occupants or users of the land.
The ACT does not have significant mining activities, but purchasers should still enquire whether any licences or easements affect the property, including Commonwealth interests.
Some ACT rural leases have historical agricultural use that may have resulted in contamination from pesticides or chemicals. Purchasers should inspect the Property for potential contamination and may obtain reports from ACT Environment Protection Authority.
Livestock health and biosecurity matters are regulated by the ACT Biosecurity Division. Native vegetation clearing or disturbance may require approval under the Planning and Development Act 2007 (ACT). Purchasers intending to farm should make appropriate enquiries.
Some ACT rural properties rely on access rights over Territory land or private easements. Purchasers should verify the legal access arrangements.
The rural lease structure in the ACT requires approval for certain agricultural or horticultural activities. Purchasers should enquire with ACT Planning to confirm usage rights and restrictions under the relevant Crown lease.
ACT rural leases are subject to general rates, water charges and potentially separate fire or land management charges.
Rural ACT properties may use on-site sewage systems, which must comply with ACT Health requirements.
As the ACT vendor disclosure regime differs from freehold jurisdictions, purchasers must conduct thorough due diligence with their Canberra conveyancing solicitor.
If you have any questions or concerns please contact Ben Hatte of our Property Law Team on 02 6188 3600