In a dramatic turn of events, an Australian homeowner has found themselves facing a staggering financial setback due to a seemingly minor mistake.

The case highlights how a single oversight can lead to significant consequences, prompting a closer look at the intricacies of property laws and the importance of meticulous attention to detail.

This incident serves as a stark reminder of the potential pitfalls in real estate transactions and the far-reaching effects of even the smallest errors.

A homeowner is outraged after the local council used an anonymous one-sentence submission to heritage-list his property, leading to significant financial losses.

Tian Xiang Sun asserts he has lost $461,250 due to the covert process that applied a heritage overlay to his home at 23 Clapham Street, Balwyn, in Melbourne's inner west.

This decision has halted Mr Sun’s plans to demolish the house and build a new one, a project he intended to undertake after purchasing the property at auction last July and settling three months later.

A Melbourne homeowner faced severe financial impact due to an unexpected heritage overlay on his newly bought Balwyn property. Credit: Google Maps

Mr Sun entered into a building contract shortly after purchasing the property, unaware that a public submission in September to the City of Boroondara Council had requested the home be heritage listed.

The brief submission described the house as ‘an interesting and well-resolved example of a low-slung Japanese-influenced craftsman bungalow’.

According to the anonymous author, the property also exhibited ‘superb and highly intact decorative detailing and distinctive use of massing to create a very grounded low-slung house which is comparatively unique within Boroondara’.

Based on this submission, council officers recommended the property for heritage listing, despite it being previously excluded from heritage protection in 1991 and 2015.

Consequently, Mr Sun, who was not informed about the heritage nomination until months after the settlement, had to default on his building contract as he could not proceed with his construction plans.

Mr Sun, who was born in China, has hired the law firm Mills Oakley to challenge the fairness of the council's heritage nomination process.

His lawyers are also claiming that Mr Sun has faced discrimination due to his ethnic background; however, council officers have denied any racial targeting in Mr Sun’s case.

A report from the officers to the council stated, ‘These allegations are rejected as baseless.’

‘It is worth noting that the nomination…was lodged by the nominator and accepted by [the] council before the settlement date.’

‘Accordingly, council officers had no knowledge of the current owner's identity when the nomination was accepted,’ it continued.

The Victorian Civil and Administrative Tribunal informed The Age that a case related to the matter was added to its human rights list last week.

On Monday, August 19, Boroondara councillors decided to uphold the heritage nomination process and move forward with listing 23 Clapham Street, along with seven other properties in inner west Melbourne suggested through open submissions.

They also rejected a proposal limiting submissions to Boroondara residents.

Nonetheless, Councillor Cynthia Watson contended that the process was flawed.

‘Is it fair that somebody from Vladivostok can see your property on the internet and then put it forward?’ she questioned.

She also argued that heritage submissions for a property should not be made while it is being transferred, as this places an unfair burden on the new owner, who may be unaware of the submission.

‘Property owners are collateral damage to heritage protection,’ Ms Watson added.

Scott Walker, Boroondara's urban living director, stated that the council is prepared to contest the legal action initiated by Mr Sun.

‘Council bases its decision solely on the heritage value of the property, regardless of who nominated it, who owns it, or when it was purchased,’ he stated.

The City of Boroondara Council has been reached for comment.

The unexpected complications surrounding Melbourne homeowner Tian Xiang Sun's property highlight how seemingly minor issues can lead to significant disputes.

Just as Mr Sun faces a costly challenge over a heritage listing, another Melbourne resident finds themselves embroiled in a surprising conflict over a small patch of grass.

This unfolding battle underscores how even the smallest details can escalate into substantial legal and financial struggles.

Key Takeaways

• A Melbourne homeowner has been significantly affected financially by an unexpected heritage overlay on his newly purchased property in Balwyn.
• An anonymous one-sentence submission to the local council caused the house at 23 Clapham Street to be recommended for heritage listing, preventing the owner from demolishing it.
• The homeowner, Tian Xiang Sun, engaged a law firm and claims he has lost nearly $500,000 due to the heritage nomination process, which he was unaware of during the property settlement.
• The City of Boroondara Council decided to retain the heritage nomination process and proceed with listing the property despite concerns over the fairness of submissions from individuals unrelated to the area.

What are your thoughts about this council decision? Do you have any advice on how homeowners could protect themselves from such an ordeal?

We'd love to hear about your experiences with property ownership and any advice you may have for fellow seniors navigating this complex landscape. Share your stories and tips in the comments below!

 

[Suzanne rose]

There are too many properties on the heritage list that shouldn't be there.
People think if they add it to the heritage list they get awhole lot of help from their council to upkeep it.

My local shop is heritage listed and it was done maybe 40 years ago. Now the new owner who has had it for 20 years has been trying to get it removed. He said it is basically impossible.

He can't do any changes to the front and can only paint it in certain colours ,he said he gets nothing from the council.

My half sister was left her grandmothers two story house in Cundeltown Taree and their backyard which is actually the front yard has the Manning River. Apparently when her great grandparents built it the only way in and out was through boat which is why it was the front of the house. This house is heritage listed and she is having so much trouble with council over renovation work. She has also tried to get the heritage listing removed with no luck

 

[Mrtnst]

Councils have too much power in this area.

Heritage listing should be reviewed by the State Government with the support of professional architects.

Not a bunch of self important political wannabes, who ruthlessly defend their, usually ill-informed, decisions to the limit of their local residents money.

 

[hrlouis]

We need to save our heritage and keep our story. Just because it's old doest mean it's useless.
Did China demolish the Great wall

 

[Mrtnst]

We need to save our heritage and keep our story. Just because it's old doest mean it's useless.
Did China demolish the Great wall

Fine words, but have you spent your own money to buy and maintain a heritage property or do you just expect others to pay for it?

If a property is advertised as heritage listed when sold, it is fair enough to expect the buyer to be prepared to pay, within reason.

But not if it isn't, and certainly not if the basis for listing is highly suspect.

Note that council's have a vested interest in listing properties as heritage.

They see them as tourists attractions, ones that they don't have to spend any money maintaining.

Nor should the restrictions applied prevent a property being fit for purpose or meet modern living/working conditions.

If councils want a museum they should buy the property and run it as one themselves.

 

[Ebby]

Fine words, but have you spent your own money to buy and maintain a heritage property or do you just expect others to pay for it?

If a property is advertised as heritage listed when sold, it is fair enough to expect the buyer to be prepared to pay, within reason.

But not if it isn't, and certainly not if the basis for listing is highly suspect.

Note that council's have a vested interest in listing properties as heritage.

They see them as tourists attractions, ones that they don't have to spend any money maintaining.

Nor should the restrictions applied prevent a property being fit for purpose or meet modern living/working conditions.

If councils want a museum they should buy the property and run it as one themselves.

Quite right he should get the council to buy it. He should have been informed before he bought it.How come they have only just decided it is heritage property?. Poor guy must be a nightmare for him.Looks like more control again telling people what they can and can't do.

 

[Govender]

This is ridiculous I say, greed and power by some Councils.
Some councils think they are the law themselves- making unreasonable rules and regulations and paying themselves a hefty salary.
The problem is that there are too many councils, there should be one council in every state.

 

[I'm Mal]

One wonders if the anonymous applicant sort heritage listing out of spite. Perhaps they wanted the property themselves and missed out.

 

[L.D.R]

Councils have gone mad. We do not need so many governing bodies. Our modest little 2 bedroom , 1 bathroom home was Heritage listed without our knowledge . Prior to that the only part of our home that was heritage listed was the little 2 foot brick front fence (go figure). We need to create shade in our backyard as the beautiful tree that did create shade had to be removed due to being diseased. We discovered we needed a permit to erect a pergola consisting of 6 posts and reo wire as our home was Heritage listed. To me Heritage listing means that Council need to approve plans and receive MONEY for said plans.....I have been to Council 4 times to clarify exactly what Council needs, each time I receive a different story. All this for a pergola that is NOT visible from the front of our home. Anyone would think that I was planning to erect a replica of the Taj Mahal.

 

[gordon1940]

Fine words, but have you spent your own money to buy and maintain a heritage property or do you just expect others to pay for it?

If a property is advertised as heritage listed when sold, it is fair enough to expect the buyer to be prepared to pay, within reason.

But not if it isn't, and certainly not if the basis for listing is highly suspect.

Note that council's have a vested interest in listing properties as heritage.

They see them as tourists attractions, ones that they don't have to spend any money maintaining.

Nor should the restrictions applied prevent a property being fit for purpose or meet modern living/working conditions.

If councils want a museum they should buy the property and run it as one themselves.

Yes....But was the Purchase Contract subject to Re development Authority? If not, and it was your intent to demolish....you loose. Sad but true.

 

[Macarj]

Councils have gone mad. We do not need so many governing bodies. Our modest little 2 bedroom , 1 bathroom home was Heritage listed without our knowledge . Prior to that the only part of our home that was heritage listed was the little 2 foot brick front fence (go figure). We need to create shade in our backyard as the beautiful tree that did create shade had to be removed due to being diseased. We discovered we needed a permit to erect a pergola consisting of 6 posts and reo wire as our home was Heritage listed. To me Heritage listing means that Council need to approve plans and receive MONEY for said plans.....I have been to Council 4 times to clarify exactly what Council needs, each time I receive a different story. All this for a pergola that is NOT visible from the front of our home. Anyone would think that I was planning to erect a replica of the Taj Mahal.

I built our previous home did a lot of the work myself and had nothing but trouble with the council luckely I had a mate who was a builder without him I don't think the house would have ever been completed

 

[MariaG]

Councils.
Nothing but L Platers practicing power mongering.
I have no time for their rules, regulations and fine print. As far as heritage listing goes. Just because something is old, doesn't mean it warrants protection.
Mind you, we took a council on once and won....it was a great feeling. Had nothing to do with heritage listing. It was more about re-zoning. They were such idiots.
It's amazing how many times you hear on the news about a wonderful old property that mysteriously went up in smoke. I guess the end justifies the means in their eyes. Our win against council did not involve any vandalism or arson, just the ability to show them up as ignorant twits.

 

[Rob44]

So some property buyer fails to do due diligence when buying an attractive house and wants perhaps to make a buck by knocking it down and building a new one. He still has that house he bought for a bit under $500 000, so stop whingeing! That's a cheap house theses days.

 

[Mrtnst]

Yes....But was the Purchase Contract subject to Re development Authority? If not, and it was your intent to demolish....you loose. Sad but true.

Ah, but the purchase contract would be with the previous owner.

If that's not the council then, it would be a member of the public that would be losing out whatever the purchase contract said.

The sale price would be significantly lower for a heritage listed property, because of the risks and costs for any renovation.

 

[Mrtnst]

So some property buyer fails to do due diligence when buying an attractive house and wants perhaps to make a buck by knocking it down and building a new one. He still has that house he bought for a bit under $500 000, so stop whingeing! That's a cheap house theses days.

Nothing in the article listed the purchase price, only the planned price for the demolish and rebuild contract.

Average 2024 house prices in that council area is approximately
$2.8M

If you're paying well over $2M for a property, with a run down old house on it [the worst house in the best street probably] then you have a right to gripe if the rules are changed after you have closed the deal.

The nomination may have been lodged and accepted before settlement, but was it included in the council disclosure statements?



My parents received disclosure statements from a council that didn't include the sewerage easement that crossed the vacant lot diagonally, preventing any home being built on it.

They only discovered when a neighbour saw them on the lot and told them about the easement, giving them a copy of the council site map describing it that was dated 2 years before the site map the council had included in the statement.

Both maps had the same version number. A clear case of intentional fraud, as the council was selling the property.

The council only agreed to allow my parents to break the deal when my parents lawyer threatened to take them to the land and environment court pro bono.

He'd just become a QC and my parents had been his first clients when he got his licence.

 

[Cheezil]

Easy enough to get caught, but when I recently sold my property (in regional Vic at least) I had to sign a "due dillagence" agreement meaning that there are no outstanding problems to the best of your knowledge - surely previous owner selling was aware of the proposed heritage listing & had an obligation to disclose this?

And surely the purchaser (& his conveyancer/solicitor) should've known to check for such encumberances before signing a contract! Costly omissions/errors, have to sympathise, should not have happened tho

 

[siameezer]

Balwyn is NOT inner west at all ... it is a leafy suburb 10 km east of Melbourne's CBD. I am actually glad the house is being heritage-listed and that a modern monstrosity is not built in its place.

 

[Mrtnst]

... surely previous owner selling was aware of the proposed heritage listing & had an obligation to disclose this? ...

... And surely the purchaser (& his conveyancer/solicitor) should've known to check for such encumberances before signing a contract!

Depends on the timing of the judgement and publication of the heritage listing.

"Before settlement" might mean the day before, and publication might not have happened until days or even weeks later.

 

[GillyH]

Councils have gone mad. We do not need so many governing bodies. Our modest little 2 bedroom , 1 bathroom home was Heritage listed without our knowledge . Prior to that the only part of our home that was heritage listed was the little 2 foot brick front fence (go figure). We need to create shade in our backyard as the beautiful tree that did create shade had to be removed due to being diseased. We discovered we needed a permit to erect a pergola consisting of 6 posts and reo wire as our home was Heritage listed. To me Heritage listing means that Council need to approve plans and receive MONEY for said plans.....I have been to Council 4 times to clarify exactly what Council needs, each time I receive a different story. All this for a pergola that is NOT visible from the front of our home. Anyone would think that I was planning to erect a replica of the Taj Mahal.

My house is not heritage listed but the council needed to approve our replacement shed & we applied for a permit and payed for it! I think this is normal.