Buying a Property With a Power Line Easement in Victoria

You can see the power lines at the inspection, but what they let an electricity company do on the land, and what they stop you doing, is set out in the title documents. Those are the papers to read before you sign.

The short answer: A power line easement gives someone other than the owner, such as an electricity company named on the title plan, a right to use part of the land for electricity lines. Before you sign, check the plan for the easement's purpose, width and holder, confirm the seller's Section 32 statement describes it, and ask the electricity company what it means for anything you plan to build or plant. Energy Safe Victoria says you can't build on an electricity line easement.

Where does a power line easement show up on a Victorian title?

It shows up in the title search and on the diagram or plan the search points to. A Victorian title search produces a register search statement, the official summary of the title. It lists the registered proprietors (the owners recorded on the register), a land description, any encumbrances (interests or restrictions recorded against the land, such as a mortgage) and a diagram location, which points to the document showing the land. Land Use Victoria notes that the diagram may show whether an easement affects the property.

Land Use Victoria's guidance shows easements on a plan in an easement information table with five columns:

Easement reference, a label such as E1 that identifies the easement on the plan.
Purpose, which for electricity reads as distribution, supply or transmission of electricity with the method stated, for example 'through overhead powerlines' or 'through underground cables'. 'Power Line' is used as a purpose only for easements created under section 88 of the Electricity Industry Act 2000 on a plan of subdivision (dividing land into lots) or consolidation (combining lots).
Width in metres.
Origin, which records where the easement came from, such as 'this plan'.
Land benefited or in favour of, which names who holds the right, known as the beneficiary.

Older plans can use shorter wording, because some easement purposes were once accepted without the qualification now required. An easement created by instrument (a separate registered document) under the Transfer of Land Act shows its purpose in the easement details on that instrument instead of a plan table. If the plan or instrument isn't in the contract pack, an instrument search can obtain a copy.

What can you do on a power line easement?

The exact rights come from the plan or instrument that created the easement, so read its wording as well as the label in the table. Energy Safe Victoria's guidance says you can't build on an electricity line easement, and if you want to plant vegetation on one, you should contact the power company for the area.

Energy Safe Victoria also says to contact the power company if a building will be within 4,600 mm of any powerline or pole. Electricity safety regulations set clearance requirements between structures and overhead powerlines, and Energy Safe Victoria advises confirming compliance with your electricity distributor before building plans are finalised.

Suppose a buyer finds a strip marked E 2 along the rear boundary of a house they're considering, described as 'Supply of electricity (through overhead powerlines)' in favour of an electricity distributor. The garden studio they had planned for that corner falls inside the strip. Because they found it before signing, they can raise questions with the distributor, change the plan or decide not to buy.

Who should you ask about the lines?

Start with the party named in the 'in favour of' column of the easement information table, because that is who holds the right. To confirm who manages the lines locally, Victoria has five electricity distribution businesses, each handling its own region, and Energy Victoria's 'Find your energy distributor' page shows the distributor for an area. For transmission lines, Energy Safe Victoria says most are on an easement and you should contact the transmission company before planning any construction nearby.

Questions to put in writing before you sign:

What does the company restrict within this easement?
Does it need access to the strip, and how is that arranged?
Would a specific plan, such as a shed, pool or extension, need its approval?

What must the Section 32 tell you about the easement?

The Section 32 statement is the seller's disclosure document under the Sale of Land Act 1962. Under section 32C(a), it must describe any easement or other similar restriction affecting the land, whether registered (recorded on the title) or unregistered, and give particulars of any existing failure to comply with its terms. Under section 32I(a), for land under the Transfer of Land Act 1958, it must attach a copy of the register search statement and the diagram location document that identifies the land.

That gives you two checks:

Does the description match the plan? The Section 32 should describe the easement consistently with the purpose, location and width shown on the plan.
Is anything already built in the strip? A shed, carport or deck on the easement may be a failure to comply with its terms, which the Section 32 should disclose.

What if the Section 32 is wrong or leaves the easement out?

Under section 32K, if the Section 32 contains false information or leaves out required information, you may be able to rescind the contract, meaning cancel it, at any time before you accept title (accept the seller's title as satisfactory) and become entitled to possession or to receive rents and profits. You can't rescind if a court is satisfied that the seller acted honestly and reasonably and ought fairly to be excused, and that you are substantially in as good a position as if the rules had been complied with. Our guide to defective Section 32 rescission rights explains how that right works.

If you have already signed a private sale contract, the cooling off period of three clear business days, a set period in which a buyer can end the contract that starts when the buyer signs, may still be open. It doesn't apply to a property bought within three clear business days before or after a public auction, among other exclusions, so read our cooling off period guide straight away.

What if lines cross the land but no easement appears on title?

The Section 32 must describe unregistered easements as well as registered ones, so where lines cross the land with nothing on title, check what the seller has disclosed, ask the seller about the lines and contact the distributor for the area before you sign. Our article on implied easements not on title explains how rights over land can exist without appearing on the register, and what an easement on title means for buyers covers easements generally.

Frequently asked questions

Do I still own the land under a power line easement? Yes. An easement is a right held by one person to make use of the land of another, so the strip remains part of your land. What changes is how you can use it, and Energy Safe Victoria says you can't build on an electricity line easement.

Can I find out about the easement before the contract arrives? Yes. Land Use Victoria recommends searching the Register of land well before you begin any land transaction. The register search statement lists encumbrances and points to the diagram that may show the easement, and our guide on how to do a title search in Victoria explains the steps.

About the Pearson Chambers Conveyancing team

Pearson Chambers Conveyancing acts for buyers and sellers of residential property in Melbourne and across Victoria, from contract and Section 32 review through to settlement and title transfer. Reviewing the title, plan and Section 32 for easements forms part of that pre signing contract review.

Sources we consulted

Have the easement checked before you sign

If the property you're considering has power lines over it or an electricity easement on the plan, send us the contract and Section 32 for a complimentary contract and Section 32 review before you sign. Email contact@pearsonchambers.com.au.

General information only, current as at the date of publication. Victorian conveyancing rules and legislation change frequently. Please contact the Pearson Chambers Conveyancing team for advice on your specific contract.