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Neighbour is taking down MY fence!
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I finally found the right person to talk to (neighbours have moved out, house now owned by a developer). They have promised that my fence will not be taken down or damaged in any way (I recorded the phone call) and will confirm that in writing.
They said that the building works will take 6 weeks, and they said there will be noise and dust (really!).
But if they are excavating up to the boundary line they should still be serving notice under the PW Act even if they are being nice about it.0
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