Given Newcastle’s history with coal mining, it is no surprise that areas of Newcastle and surrounding regions are affected by mine subsidence. After mining activity, the land above can sink and fill mine workings, causing tilts and strains on ground level which can cause damage to property. Although few properties are damaged due to mine subsidence each year, when buying property it is important to consider whether the property is within a mine subsidence district and if so, conduct necessary due diligence.
How to know if a property is in a mine subsidence district
Within the Contract, the Council Planning Certificate will note whether the land is declared to be within a mine subsidence district. In the absence of a Contract, the NSW Planning Portal can be used to determine whether a property is within a mine subsidence district.
Developments in a mine subsidence district
Any development within a mine subsidence district requires approval from Subsidence Advisory NSW. This could mean that conditions are placed on the development to mitigate the risk of damage to the property. Obtaining the approval of Subsidence Advisory NSW is done during the development approval process.
Existing houses in mine subsidence districts
Subsidence Advisory NSW provides compensation to property owners for mine subsidence damage so long as development was constructed in accordance with their approval. Therefore, it is important to ensure the property was approved by Subsidence Advisory NSW and would be eligible for compensation.
Previously, Section 15B Certificates were issued to confirm that as of the date of the certificate, all structures on the property were constructed in accordance with Subsidence Advisory NSW’s approval and are eligible for compensation if impacted by mine subsidence. Any subsequent development would only be eligible if built in accordance with Subsidence Advisory NSW’s requirements. The register of previously issued Section 15B Certificates can be searched to see if a certificate was issued.
As of late 2019, Section 15B Certificates were discontinued. Under the new regime, it is up to purchasers to carry out due diligence to ensure the property was built in accordance with Subsidence Advisory NSW’s approval by obtaining the relevant documentation from the vendor or Council.
Property not approved by Subsidence Advisory NSW
Subsidence Advisory NSW have discretion to pay compensation where the non-compliance is through no fault of the purchaser, and it can be shown that they sought the relevant approval from the vendor or Council.
If you are considering purchasing a property, contact the team at Baker Love Lawyers to ensure that all necessary due diligence is carried out including confirming that the property is covered for mine subsidence damage.
