Flat Rate Settlements

Settlement lawyers Perth WA

Granny-flats – things you should know

Using existing land, granny-flats may be a home extension or a self-contained dwelling. 

A granny-flat may be a convenient and cost effective option, striking a good balance between close access to family and independent living. As no property transfer is required for granny flats, there is no transfer duty or real estate agent fee, and therefore potentially a significant saving compared to selling or buying a property.

Although a formal land subdivision is not required for a granny-flat, the land owner will need:

  • planning approval from the local authority;
  • a building permit for construction; and
  • approval from the Water Corporation.

Granny-flats must be built either by a registered builder or owner-builder.  Many Western Australian building companies offer specialist granny-flat services.

Document the financial arrangements

Building a granny flat may improve the value of the property it is built upon.  In any event the building costs will be substantial.  It is important to record any family loans or agreements in writing. As your lawyers we can properly draft an agreement that will protect your rights and help prevent a disagreement or relationship breakdown. You may wish to make or review your Will at the same time.

Speak to Centrelink or the Department of Veterans’ Affairs before exchanging money or valuable assets for a granny-flat, as your entitlements may be affected.

How we can help

Michael Hodgkins

Michael has been a partner of Birman & Ride since 1 July 2009. He leads the firm’s family and property law teams which offer a broad range of services including real estate settlements, property and commercial law, family law, wills, estate planning, probate and estates. The firm is a… View full profile »

Telephone: (08) 9220 4455 | Email: mh@birmanride.com.au

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