When inspecting a property, buyers often focus on layout, presentation and whether the home suits their needs. However, some improvements to a property may not have the required approvals. These are commonly referred to as unapproved works.
Unapproved works can create legal, financial and practical issues for buyers. While the work may appear sound or have been in place for many years, this does not necessarily mean it complies with council or building requirements.
Understanding what unapproved works are, how they can affect ownership and why approvals should be investigated early is an important part of the property buying process.
What Are Unapproved Works?
Unapproved works are building works, additions or alterations that have been completed without the required council approval, building certification or final inspection. These works may have been carried out by a previous owner, contractor or even many years before the current sale.
In some cases, sellers may not be aware that works are unapproved. In other situations, the issue may be known but not fully understood. Either way, buyers should not assume that a structure is approved simply because it exists on the property.
Unapproved works can include:
- Decks, patios, pergolas or carports
- Sheds, garages or granny flats
- Extensions or converted rooms
- Internal renovations involving structural changes
- Pool fencing or retaining walls
The level of risk will depend on the type of work, when it was completed and whether retrospective approval is possible.
Why Unapproved Works Matter
Unapproved works can affect more than the appearance or functionality of a property. They may create ongoing obligations for the owner and can influence insurance, resale and future development plans.
If a council becomes aware of unapproved works, it may issue notices requiring the owner to provide documentation, obtain retrospective approval or remove the structure. In some cases, rectification works may be required to bring the property into compliance.
For buyers, this can mean inheriting a problem that existed before settlement. Once the property has been purchased, responsibility for dealing with the issue may fall to the new owner.
This is why it is important to identify approval concerns before signing a contract or during the relevant due diligence period.
Insurance and Compliance Risks
One of the key risks associated with unapproved works is insurance. If damage occurs to or because of an unapproved structure, an insurer may question whether the relevant work was lawful or compliant.
For example, if an unapproved deck, extension or retaining wall contributes to damage or injury, there may be issues with coverage depending on the policy terms and circumstances.
Unapproved works can also affect compliance with safety requirements. This is particularly important for structures such as pools, decks, balconies, stairs and retaining walls, where defective construction may create safety risks.
Even if the work appears well built, buyers should confirm whether the required approvals and certifications exist.
Impact on Future Resale or Development
Unapproved works can also create complications when the buyer later decides to sell the property. Future purchasers may raise the same concerns during their own due diligence, and lenders or insurers may require further information before proceeding.
These issues can delay a future sale or reduce buyer confidence. In some cases, a future buyer may request a price reduction, special condition or evidence of retrospective approval before committing.
Unapproved works may also interfere with future renovation or development plans. A buyer who intends to extend, subdivide or make changes to the property may discover that existing unapproved structures need to be addressed first.
What Buyers Should Check
Buyers should take a careful approach where they suspect works may have been completed without approval. This is particularly important where additions or alterations appear newer than the original dwelling or where the property has been significantly modified.
Key checks may include:
- Reviewing council records and building approvals
- Comparing visible structures with approved plans where available
- Asking the seller for evidence of permits, inspections or final certificates
- Obtaining building advice if the quality or compliance of the work is uncertain
These steps can help buyers understand whether the works are approved, whether further investigation is required and whether the issue should affect their decision to proceed.
Why Timing Is Important
Approval issues should be investigated as early as possible. Ideally, buyers should raise concerns before signing the contract. If this is not possible, they should ensure the contract provides an appropriate due diligence or inspection period that allows time to investigate.
Once a contract becomes unconditional, the buyer’s options may be limited. If unapproved works are discovered late in the process, it may be difficult to renegotiate, delay settlement or require the seller to take action unless the contract allows for it.
Early investigation gives buyers more flexibility and helps avoid pressure decisions close to settlement.
The Role of Legal Advice
A property lawyer can assist by reviewing the contract, disclosure material and search results to identify potential approval concerns. They can also advise whether special conditions are needed to protect the buyer if further investigation is required.
Where unapproved works are identified, legal advice can help buyers understand the possible consequences and available options. This may include requesting further information from the seller, negotiating repairs or approvals, or considering whether the risk is acceptable.
Legal guidance is particularly important where the buyer’s decision to proceed depends on the legality or compliance of certain structures.
Final Thoughts
Buying a property with unapproved works does not always mean the purchase should not proceed. However, it does mean buyers should take the issue seriously and understand what they may be inheriting.
By investigating approvals early, reviewing council records and obtaining legal advice before the contract becomes unconditional, buyers can make informed decisions and reduce the risk of unexpected costs after settlement.
It is essential that buyers obtain legal advice before signing or proceeding with a contract where unapproved works are known or suspected. Failure to do so could result in a buyer accepting responsibility for compliance issues, rectification costs, insurance limitations or future resale complications that were not properly understood before settlement. The advice received should be tailored to the specific property, council records, contract terms, visible improvements and the buyer’s intended use of the property, rather than relying on general assumptions about whether the works are acceptable.