Building structure without Council Approval

Discussion in 'The Buying & Selling Process' started by PropertyInsight, 27th Sep, 2017.

Join Australia's most dynamic and respected property investment community
  1. PropertyInsight

    PropertyInsight Well-Known Member

    Joined:
    22nd Jun, 2017
    Posts:
    332
    Location:
    Australia
    I have got building inspection report today. Inspector suspects that some building structures have been built without the Council Approval and ask me to enquiry the local council. However, council advised me that I have do building searches whose result will take upto 10 days. the contract is subject to building inspection witin 7 days. So, it is not good to wait for building searches.

    Question: what happen if I buy a property with structure changes without council approval?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,216
    Location:
    Sydney or NSW or Australia
    If you buy without the council approval in place, there's the risk that council may require the demolition of unauthorised structures.

    You should speak with your solicitor with respect to requisitions from the vendor to provide this information.
     
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,473
    Location:
    Sydney
    You can search building approvals for almost all councils online by using street address, lot no etc. Its not full and final but it may indicate what is unapproved v's what is approved. The council can only verify what IS approved. I suspect thats what the inspector did.
     
  4. Phantom

    Phantom Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    2,054
    Location:
    Sydney
    This largely depends on the council. I have personally received info over the phone for an IP I was about to make an offer on in Sydney. There was an extension, which was not approved. Council received an application for a renovation, but they were never notified for the final inspection and assumed the extension did not proceed. Turns out the extension was not done to code and would never have passed final inspection.
    I walked away from that property. Also consider the insurance consequences if there was an incident (injury, death etc.) with tenants and you were not covered.
     
  5. vbplease

    vbplease Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,575
    Location:
    Brisbane
  6. Lawrence Barnes

    Lawrence Barnes Well-Known Member

    Joined:
    13th Sep, 2017
    Posts:
    280
    Location:
    Brisbane
    When you purchase in Brisbane most properties don't have council approval. This does not necessarily mean it's been built badly just that council were not involved and didn't get their cut to tick a box. I always check with a builder to confirm it's been completed professionally and then you are good to go. Not sure about the other states though.
     
  7. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,995
    Location:
    Brisbane
    I'm not sure if you mean what you've actually written... "when you purchase in Brisbane most properties don't have council approval."

    I'm guessing you might mean that older houses often won't have approval for obvious additions?

    Our son bought a house with a large room tacked onto the back. There were no approvals on record, but BCC told us that they didn't keep records back in the 60s (or thereabouts) when the addition was added. They weren't too bothered, and the extension is solid and well built.

    The lawyer doing the sale said we didn't need to worry, this is very common (which we know very well) and there is no reason to think the extension was not approved. There is no way to tell.

    There would be so many of these in many cities (not just Brisbane) that were renovated or extended long before records were kept.
     
  8. Lawrence Barnes

    Lawrence Barnes Well-Known Member

    Joined:
    13th Sep, 2017
    Posts:
    280
    Location:
    Brisbane
    That's exactly what I was saying. My main point was not to let this put you off purchasing a good property as long as you have a builder check the addition or extension etc to confirm it was built by a professional builder and is structurally sound.
     
    wylie likes this.
  9. Victor

    Victor Member

    Joined:
    29th Sep, 2017
    Posts:
    11
    Location:
    NSW
    Hi all, I hope you can advise me on this topic as well. I just bought a 3 bedroom existing house in Sydney with an extension and this property has settled and tenanted. The real estate agent advised the extension was DA approved. However my brother called the Bankstown council and the council informed no approved DA could be found yet. As I am fairly new to the property investment scene, would be great if I can get advise

    a) What the impact of unapproved extension to tax depreciation?
    b) Chances of council demolishing the extension?
    c) Can I sue my real estate agent for the misrepresentation? The seller agent and my real estate agent is the same person.

    I am unsure when the house was built. Anyway I can find out? I know the first time the property was sold is in 1985.

    Any advise is much appreciated.
     
  10. PropertyInsight

    PropertyInsight Well-Known Member

    Joined:
    22nd Jun, 2017
    Posts:
    332
    Location:
    Australia
    I talked to my solicitor and get advised as follows:

    1. Council may request demoblish the unapproved structure
    2. Building code may not be followed. The property appears unsafe. If someone dies because of this structure, you are liable for it. Insurance will not cover the public liability for such structure.
     
  11. RenegadeDom

    RenegadeDom Well-Known Member

    Joined:
    22nd Feb, 2016
    Posts:
    206
    Location:
    Sydney
    In many cases you may be able to obtain a Building Certificate to certify that the unapproved works have been completed to the relevant standards. Council may issue a fine but the works will become approved with no further recourse for demolition.