What Happens If You Buy a Property with Unapproved Building Works in NSW?

What Happens If You Buy a Property with Unapproved Building Works in NSW?

Buying a property is exciting, but what happens if you find out that part of the home—like a deck, extension, granny flat, or renovation—was built without council approval? In NSW, unapproved building works can create legal and financial headaches for buyers.

Here’s a simple guide to help you understand the risks, your options, and how to handle unapproved structures when buying a property.

What Are Unapproved Building Works?

Unapproved building works are any additions, renovations, or structures built without council approval or the necessary permits.

🚨 Common unapproved works include:✔ Decks, patios, or pergolas✔ Garage conversions into extra rooms✔ Extensions or home renovations✔ Granny flats or sheds✔ Internal changes that affect plumbing or structure

Why Are Unapproved Works a Problem?

If a property has unapproved works, the local council may require you to get approval or even demolish the structure. This can lead to:

❌ Expensive rectifications – You may need to get an engineer’s report, submit applications, and modify or rebuild parts of the structure.❌ Council fines & penalties – Councils can issue fines or enforcement notices for illegal works.❌ Insurance issues – If an unapproved structure causes damage or injury, your home insurance may not cover it.❌ Difficulty selling in the future – Buyers may be hesitant to purchase a home with compliance risks.

How to Check for Unapproved Works Before Buying

💡 Tip: Always conduct thorough checks before signing a contract.

✔ Get a Pre-Purchase Building Inspection – A professional inspector can flag any questionable structures.✔ Request a Planning Certificate (Section 10.7 Certificate) – This document from the local council outlines approvals and zoning rules.✔ Check Council Records – Ask the council for records of approved plans and permits for the property.✔ Review the Contract of Sale – Your conveyancer can check for any disclosures about unapproved works.

What Are Your Options If You’ve Already Bought a Property with Unapproved Works?

If you discover unapproved works after buying the property, here’s what you can do:

✅ Option 1: Apply for a Retrospective Approval (Building Certificate)

Most councils allow you to apply for approval after the fact—but you may need:✔ A private certifier or engineer’s report✔ Plans or drawings of the structure✔ Possible modifications to meet building codes

💡 Tip: If the structure is unsafe or doesn’t meet building regulations, you may need to demolish it.

✅ Option 2: Negotiate with the Seller (Before Settlement)

If you discover unapproved works before settlement, your conveyancer may help you:✔ Negotiate a lower purchase price to cover costs✔ Request that the seller obtains approvals before settlement

✅ Option 3: Take Out Special Insurance

Some insurers offer Title Insurance, which can protect buyers from council action regarding unapproved works. However, this won’t help if the structure is unsafe.

Can You Be Forced to Remove Unapproved Works?

Yes. If the council becomes aware of unapproved works, they can:🚨 Issue a Building Rectification Order requiring approval or modifications🚨 Issue a Demolition Order if the structure cannot be approved🚨 Fine the property owner for non-compliance

💡 Tip: Councils don’t always take action immediately, but if you want to renovate, sell, or claim insurance, issues may arise.

Final Thoughts: How SL Conveyancing Can Help

If you’re buying a home, knowing about unapproved works upfront can save you time and money.

🏡 At SL Conveyancing, we help buyers:✔ Check contracts & council approvals before purchase✔ Negotiate with sellers if issues arise✔ Ensure you’re protected legally before settlement

📞 Need expert guidance? Contact us today! We’ll help you navigate property risks and make your purchase stress-free. 🚀