Landownership has always been a big deal. In the feudal systems that dominated Europe during the Middle Ages, society was essentially divided between the class that owned land and the peasants that lived on it. In England, the right to vote was only extended to men who didn't own property in 1832.

Things are more progressive these days, but becoming a homeowner still means more than simply having a mortgage to your name. Here's what to know about your rights as a property owner, as well as the new responsibilities you've taken on.

What are your rights as a property owner?

Once you become the title owner of a property, there are plenty of legal rights immediately conferred upon you. You can live in the property, rent it out, sell it, gift it to someone else, or use it as collateral for loans. Provided you're compliant with council regulatory boundaries, such as planning permissions and zoning, you also have the right to improve or alter it, as well as use it for commercial purposes.

And that's not all:

The right to exclusion

The title owner of a property generally has the right to exclude anyone they choose from the premises. If a belligerent party guest refuses to leave, you can call the police to come and kick them out for you.

There are some exceptions though. If the property is rented out, the tenants have 'exclusive possession' rights, which prevent even the owner from entering the property without permission. A search warrant also supersedes the property owners' right to exclusion.

What rights does a buyer have prior to settlement?

Once the cooling off period expires and a property transaction goes unconditional, the contract of sale becomes legally binding, which means either party will be in breach if they subsequently try to back out. If the seller tries to cancel the deal (say, because someone else offers more money), you as the buyer have legal grounds to force them to follow through. If they don't, you may be entitled to damages for any financial losses you suffer as a result of the breach.

See also: Can you break or terminate a real estate contract?

Homeowners' rights if there are problems with their property

If you've discovered serious defects or flaws with your newly bought property, you may have legal recourse against the seller.

In Australia the onus is generally on the buyer to perform due diligence. If you discover a termite infestation after you move in, you likely won't be able to get anything from the seller or back out of the deal (unless the contract is conditional and pending a building and pest inspection).

In some cases though, you might have grounds for a claim against the seller. Australian Consumer Law prevents vendors from engaging in "conduct that is misleading or deceptive or is likely to mislead and deceive" (section 18). If the seller lied about something, or didn't disclose information they should have, you may have grounds for compensation or to rescind the contract. The 1983 NSW case Anderson v Daniels is a good example of this. The Daniels' were selling a property with severe cracks in walls and so, at the last minute, had a plasterer come and cover the cracks on the inside. Once the Anderson family moved in, the cracks reappeared. The Andersons successfully sued the Daniels for misleading or deceptive conduct.

Of course, courts have ruled in the seller's favour in other circumstances. You'll probably need to contact a lawyer to learn if you can make a claim like this.

What are you responsibilities as a home owner?

There are also several legal responsibilities new home owners should be aware of.

You must follow through with the transaction

Once the deal goes unconditional, the buyer has an obligation to follow through with the purchase - you can't just change your mind. This is why a subject to finance clause is a good idea - if you can't get a home loan to buy the property, you'll still have a legal obligation to follow through with the deal unless specified otherwise in the contract. If you pull out of a deal after the offer goes unconditional, the seller can likely claim damages for any subsequent loss.

You must pay your mortgage

Signing up to a home loan means having a legal obligation to pay back your lender in full. If you default on your mortgage repayments your lender may repossess the property to recoup the outstanding debt.

Property maintenance is your responsibility

Property is the most expensive asset most people own, so it's in your best interests to maintain your new home as best you can. However, some aspects of property maintenance go beyond responsibility to yourself, potential housing legal ramifications.

Homeowners need to make sure their home does not pose an unreasonable risk of harm to visitors. Say, one of the steps leading up to your front door is rotten and an unwitting salesperson puts their foot through it, breaking their ankle. This could well be deemed negligence and you may be liable for compensation.

You must follow council rules

Home owners also need to make sure they remain compliant with local council rules.

As we touched on, owning a property means you're allowed to use it for commercial endeavours, but zoning rules still apply. If you live in a residential zone, you probably won't be able to turn your new property into a smelter, for example. Local councils each have different rules but as a rule of thumb, if your business is likely to disrupt your neighbours, it probably won't allowed.

Similarly, homeowners can renovate or build on their property as they see fit, but they'll need planning permission from their council to do so.

You must meet minimum rental property standards

If you plan to rent out your property, you'll need to make sure it complies with the relevant tenancy laws in your state or territory. These guidelines tend to be fairly comprehensive, normally including requirements for electricity connections, adequate drainage, kitchen and bathroom facilities, and smoke alarms, among other things. Before you make the property available for rent, make sure you look up the relevant legislation and check everything is up to scratch.

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