Buyers’ fury: Lendlease estate owners charged thousands in shock Redland rates bills

A group of angry bayside land owners say they have been overcharged in council rates and have called on development giant Lendlease for reimbursement and to pay its fair share.

Dr Nevin Colgrave says Lendlease forced him to pay rates on his land before he took ownership. Pictures: Contributed

Property buyers at an emerging 4000-lot housing estate on Brisbane’s prestigious bayside have lashed out after being billed thousands of dollars for rates they claim are owed by estate developer Lendlease.

Land buyer Nevin Colgrave and his partner said Redland City Council overcharged them $722 in rates on their newly-purchased 950 sqm block at Redland Bay’s Shoreline estate.

Dr Colgrave said the council rates notice included charges for five months before they owned the property.

His public outcry prompted four other property buyers at the Shoreline estate to reveal they had also been billed rates for months when Lendlease owned the land.

Shoreline land owner Kimberley Barry said she had been waiting since June for Lendlease to reimburse her the overcharged rates.

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Dr Colgrave said five days after he and his partner bought their 950 sqm block in Lendlease’s Shoreline estate on October 5, they were served a rates bill demanding $1592.82 by November 17.

“We got our first rates notice from Redland council on October 10, which included over $700 for five months prior to the settlement date, when we didn’t even own the block,” Dr Colgrave said.

“On seeking clarity from our lawyer, we found out that the developer had asked that their outstanding rates not be taken into account in the final settlement figure, giving an undertaking that they would reimburse us later.

“Since then, they’ve ghosted our lawyer whenever the topic of reimbursement has been raised.”

An aerial view of Lendlease’s Shoreline estate with the new Scenic Shores State School in the top right hand corner. Picture: Contributed

Dr Colgrave complained to Redland council, which told him to contact his lawyers to seek reimbursement of $722.96 from the developer.

“The backdated charges appearing on your rates statement from May 22 to September 30 were listed as Future Charges on the Rates Search completed on September 26, 2023,” the council billing officer said in an email.

“Therefore, the total of $722.96 should have been taken into consideration at time of settlement.

“If this did not occur, you will need to get in contact with your solicitor as council does not enter negotiations with either party regarding settlement figures.”
Developer Lendlease, which has put its Communities housing estate arm on the market, said the practice was “business as usual” and any reimbursements for rates between parties always took place post settlement.

Communities Lendlease Queensland head Ian Murray said rates notices and property settlements often occurred at different times.

“The timing of rates notices being issued and settlement occurring at different times is a common process, especially when purchasing land off the plan that has recently been subdivided and registered,” he said.

“As always, any reimbursements for rates between both parties take place post settlement.”

Lendlease said it was common practice for new owners to pay the full rates bill upfront and then ask to be reimbursed for the months prior to ownership.

The company said it had not received any complaints about the practice.

Dr Colgrave issued a warning to those who were considering buying into the estate.

“For those looking to buy in Shoreline, make sure you insist on outstanding council rates being factored into your final settlement figure, otherwise you’ll likely be stuck paying the developer’s rates bill.”

“I believe it is unfair that the land buyer is paying the bills for a large developer and is expected to chase the developer for the money.”

Originally published as Buyers’ fury: Lendlease estate owners charged thousands in shock Redland rates bills