Hi PC, Does anyone know the implications of purchasing a block of land with unapproved dwellings in NSW? Can you be fined for these retrospectively or is the worst that could happen is that you'd be asked to take them down? I've just come across a block of land with three little cabins / unapproved dwellings- its a decent price for an empty block of land (assuming there are no huge liabilities associated with it!
You acquire the illegality and may be ordered to demolish the structure and reapply for approval to construct a new dwelling. You may enter into a lease with occupants and need to compensate them without any recourse. Penalties could also be imposed but these are not typical unless you refuse and the matter progresses for court orders. Its not uncommon for people who know they have a council issue to sell to a unsuspecting buyer who then promptly receives a council notice. This is why legal advice on the council approvals early-on is wise. A lawyer will check the validity of the approvals.
If you are ordered to demolish then don't forget that costs money so you'd want a discount of around $20-30k to factor in possible future demolition Personally I wouldn't like the risk. I'd be talking to council to work out if a retrospective DA approval could be granted and only go ahead if it could.
