If you’re considering buying property in New South Wales, you may have come across the term “Section 88B Instrument” and thought it sounds like some strange legal jargon, we get you – there’s a lot to digest when it comes to official documentation. However, this document, along with others, can tell you so much about the property in question. Deciding on a huge investment like buying a property can be made easier by doing your homework and educating yourself, so let’s take a deep dive and help you understand this particular document.
What is a Section 88B Instrument?
A Section 88B Instrument is a document that’s commonly used in property transactions in NSW. It accompanies any new plan for registration where a property easement, right, restriction or covenant is being created (or removed). It’s part of a Deposited and sits under the Conveyancing Act 1919, and specifically deals with creating or modifying any rights or restrictions. Check out our Deposited Plan blog here for if you want to learn more about what these are. These rules and restrictions are attached to the property when it’s sold, and the new owner must follow them.
In simple terms, it’s a document that outlines certain rights or limitations related to the use of the land you’re considering buying. This can include things like:
- Easements: Easements give the right to use part of someone else’s land for specific purposes like drainage or having a driveway.
- Restrictions: Certain things you can or can’t do with the property, such as building in certain areas or types of development.
- Covenants: Agreements or conditions placed on the land that restrict how the land can be used, such as maintaining a certain type of building style or fencing.
NOTE: 88Bs only came into existence in the 1960s – this means that not every property has an 88B attached. If the property has no 88B, the information typically captured in an 88B instrument can often be found in the Schedule 2 of the property’s Title Certificate – a document that InfoTrackGO can also source for you here.
Why is a Section 88B Instrument important for property buyers?
When you buy a property, you’re not just buying the physical land or building, you’re also purchasing any rights or restrictions that come with it. This document provides a clear record of those rights and restrictions, which could directly impact your future plans for the property, and can prevent unpleasant surprises after you’ve already purchased the land.
Here are a few key reasons why it’s important:
- Clear access: If there’s an easement granting a neighbour access to your property, or the other way around, you’ll know in advance if you need to share a driveway or allow them to cross your land for utilities.
- Building restrictions: Some properties might come with covenants or restrictions that prevent you from making certain modifications, like adding a second storey or installing a pool.
- Legal protection: It helps avoid legal disputes later on, as the terms outlined in the instrument are binding, must be followed, and clearly documented.
What does a Section 88B Instrument look like?
Here is a sample Section 88B Instrument document and what it might look like for your property.
Some examples: how Section 88B Instruments might affect you
Let’s look at a few examples of how Section 88B instruments might come into play in real-world situations for property buyers:
Example 1:
Imagine you’re purchasing a townhouse, and the property has a driveway that is shared with other properties in the same complex. The Section 88B instrument will likely outline the easement giving you and your neighbours the right to use the driveway. This means you can’t block it or build over it without potentially breaching the agreement.
How does this affect you? If you plan to build a garage or fence on the property, you’ll need to make sure your plans don’t block or obstruct the shared access.
Example 2:
Let’s say you’re buying a plot of land in a suburban area. The Section 88B instrument might show that there is a covenant preventing you from building a structure taller than one storey, or it might restrict you from adding certain features like large fences or outbuildings.
How does this affect you? If you want to build a two-storey house or add a large structure, you’ll need to check the covenant terms. Ignoring these restrictions could result in legal disputes, and you might have to demolish any non-compliant structures.
Example 3:
You may be buying a property that relies on a neighbour’s land to access utilities like water or electricity. A Section 88B instrument could document these easements, which give you legal access to those services across someone else’s land.
How does this affect you? If you plan on renovating or subdividing the property, you’ll need to ensure that your plans don’t interfere with these easements. Otherwise, you might end up in a dispute with your neighbour over access to critical services.
Understanding the Section 88B instrument is an essential part of buying property in NSW. It’s a simple yet powerful source of information that helps you understand any restrictions or rights associated with the land. You can plan your property improvements with confidence and ensure that your new property meets your long-term needs. If you’re in need of one, you can easily order a Section 88B Instrument for a property by clicking here.
The content provided in this blog is intended solely for general information and awareness around our product offerings. It does not constitute personalised advice for any specific individual or organisation and should not be solely relied upon. All information within this blog post is generalised and does not consider the unique situations, circumstances, or requirements of any individual or organisation. Always seek professional advice and consider the suitability of the information to your specific goals and needs before taking any action based on the information presented.
