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Negotiating Shared Fence Costs: Practical Tips for a Fair Split

October, 4th
Settled Team
Conveyancing Tips
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In Victoria, the 1968 Fences Act specifies neighbours should split the cost of a shared fence 50/50. The Act says both property owners must contribute equally to a “sufficient dividing fence”. This means, by default, both you and your neighbour are responsible for half the cost of building or repairing a fence between your properties.

However, there are some exceptions to this rule. For example:

  • If one neighbour wants a more expensive fence than what’s considered “sufficient” they may need to pay the extra cost.
  • Neighbours can also agree to a different cost-sharing arrangement if it works better for both of them.
  • If a neighbour has damaged the fence on purpose or through negligence, they might be responsible for the full repair costs.

While the law lays out the equal cost-sharing principle, it also encourages neighbours to discuss and come to their own agreements. If they can’t agree, formal processes like serving a fencing notice or even going to court may be necessary to settle the dispute.

Practical Tips for Negotiation

No one wants to go to court to settle a fencing dispute, but it can be an unfortunate outcome if you and your neighbour don’t negotiate fencing costs successfully. The process can certainly go smoothly, if you approach it with the right attitude and steps.

1. Start with Open Communication

Start with a friendly chat. Don’t jump straight into numbers or demands – start with a casual conversation. Maybe you’ve noticed the fence is starting to sag or there’s a section that’s broken, and you think it’s time for a replacement. The goal here is to open the door to discussion without making anyone feel defensive.

You might say something like, “Hey, I’ve been thinking about the fence between our properties. It’s starting to show its age, and I was wondering how you feel about working together to replace or repair it.” This kind of approach is much more likely to start things off on the right foot.

2. Do Your Research

Before you sit down to discuss costs, it’s important to do a little homework. Get a few quotes from reputable local fencing contractors so you have an idea of how much the project will cost. This way, you can present your neighbour with real numbers rather than guesstimates.

Also, familiarise yourself with any local regulations – like how high the fence can be or what materials can be used. This shows that you’ve done your due diligence and helps avoid any misunderstandings or conflicts with the local authorities later on.

3. Present a Clear Proposal

When you’re ready to have a more formal conversation, it’s a good idea to come prepared with a written proposal. This doesn’t have to be anything fancy – a simple document that outlines the estimated costs, details about the materials and design, and why the fence is necessary. Be sure to include the benefits for both of you, like added security, increased property value, or improved aesthetics.

For example, if the new fence will improve privacy or security, it’s a good point to emphasise how it’s a win-win situation: “I think this new fence will look great and help keep our properties safe and secure.”

4. Be Flexible and Open to Compromise

It’s important to remember that your neighbour might have their own ideas about the fence. Maybe they prefer a different style, material, or even timeline. Or, they could have financial concerns that make splitting the cost 50/50 tough for them.

Be open to hearing their perspective, and be willing to compromise. Perhaps you could consider a different material that’s more affordable or work out a payment plan that’s manageable for them. The goal is to find a solution that works for both of you, so being flexible will help keep the conversation positive and productive.

5. Document Everything

Once you’ve reached an agreement, it’s crucial to keep a record of everything. Even if you and your neighbour get along well, having written documentation protects both of you in case there are any issues down the line.

In Victoria, you need to send a formal “Notice to Fence,” which is a legal document outlining the proposed work. Once they receive the Fencing Notice, your neighbour has 30 days to respond (even if they’ve already verbally agreed). It’s a good idea to send it to them by registered post so there is proof that they have received it.

6. Consider Alternative Payment Arrangements

If your neighbour is hesitant about the costs, you could explore some alternative payment options. For example, you might suggest splitting the payments over time or offering to cover the upfront costs and have them reimburse you later.

This kind of flexibility can help smooth over any financial concerns they may have and make them more comfortable with moving forward. Just make sure you document the arrangement to make sure you’re covered if there are any disputes down the line. 

7. Seek Mediation if Necessary

Sometimes, even with the best intentions, you and your neighbour might not be able to reach an agreement. In these cases, it might be helpful to bring in a neutral third party, like a mediator, to help facilitate the discussion. Mediation is a lot less formal (and less expensive) than going to court and can help resolve disputes in a fair and constructive way. You can often find local mediation services through your city or neighbourhood association, or you could search for private mediators in your area.

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How a Conveyancer Can Help with Property Fencing Issues

If you’re in the market to buy property, having a conveyancer on your side can help prevent potential fencing and property boundary disputes in the future. 

Addressing Fencing Concerns Before Purchase

A conveyancer will review any concerns you have about the property’s fencing, such as its condition or location. If there are problems, like the fence not being on the correct boundary or needing repairs, your conveyancer can add terms to the contract of sale. For example, they can request that the seller fixes any fence issues before the sale is finalised. 

Organising an Identification Survey Report

If you’re unsure about the exact property boundaries, a conveyancer can arrange for an Identification Survey Report. This legal document, prepared by a registered surveyor, maps out the property’s boundaries, providing precise measurements and showing how close buildings and neighbouring structures (like sheds or carports) are to the property lines.

Although it’s not required for either the seller or the buyer to obtain this report, it’s highly recommended. It helps you avoid or resolve any disputes over the location of the fence or other boundary issues. 

Title Insurance

Another way a conveyancer can protect your interests is through Stewart Title Insurance. This insurance covers you against potential problems with the property’s title, including boundary disputes. It’s a one-off payment (starting at around $400 AUD) that lasts as long as you own the property and can save you from costly legal battles in the future. 

Need Conveyancing Help? Choose Settled.

Buying a property can be complicated. At Settled, we’re here to make sure the process is as smooth and stress-free as possible. Our expert team of conveyancers will handle the important legal details, so you can focus on what matters – securing your new home. Get in touch with Settled today for expert guidance and the peace of mind that your interests are protected.

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