Unapproved building work: how to check in NSW

Unapproved building work is any extension, deck, carport, bathroom, attic room or other change made without the council or certifier approval it needed. In NSW, once you buy, it becomes your problem: the council can order it fixed or removed, a bank may value it lower, and insurance can be harder. Check the approvals before you sign, and if something wasn't approved, ask whether the seller can get a building information certificate.

Why it matters

Plenty of homes have work done over the years without approval. It isn't always unsafe, but it carries real risks for the buyer:

• Council orders. The council can require you to make the work comply, apply for approval or remove it.
• Lower bank valuation. A valuer may leave an unapproved room or granny flat out of the value, which can affect your loan.
• Insurance. An insurer may question a claim involving work that was never approved.
• Resale. The next buyer will ask the same questions.

Many NSW contracts include a special condition that stops you objecting to unapproved work once you've exchanged, so the time to check is before you sign.

Spotting work that may not be approved

Walk through with the floor plan or listing in hand and compare it with what's actually there. Common examples:

• A garage turned into a bedroom or studio
• An enclosed balcony or verandah
• A granny flat or self-contained space with a kitchen
• A loft or attic room with a fixed staircase
• A rear extension, deck or pergola that looks newer than the house
• A bathroom or laundry added where there wasn't one

A building inspector may point out work that looks unapproved or doesn't meet the building code. They can't confirm approvals, though. That comes from council records. See what a building and pest report covers.

How to check approvals

Council records

Search the council's application tracker or the NSW Planning Portal for past development applications (DAs), complying development certificates (CDCs), construction certificates and occupation certificates for the address. An approval on its own isn't the end of it. An occupation certificate shows the finished work was signed off as fit to use.

The contract

Read the contract and its special conditions. Some sellers attach approvals and certificates. Others add a clause saying the buyer can't object to any unapproved work. That clause is a warning sign worth asking about.

Ask the agent

Ask directly: "Was every extension and change approved, and is there an occupation certificate?" A clear answer with documents is a good sign.

Building information certificates

A building information certificate is issued by the council for a whole building or part of it. It confirms the council won't order that building to be demolished, altered or rebuilt, or take action over it encroaching on council land. Councils describe it as lasting seven years.

Sellers or buyers often apply for one when work may not have been approved. The council inspects and may ask for work to be done first, such as smoke alarms or repairs, or for an engineer's or certifier's report. It doesn't cover everything, for example fire safety orders or pool barriers, and it doesn't stop penalties for building without approval.

If a seller won't get one, or the contract says you can't apply for one before settlement, ask your solicitor what that means for you.

Questions

Is unapproved work always a deal-breaker?

No. Minor work such as a garden shed may not have needed approval at all. Bigger work such as a granny flat, extension or enclosed balcony needs checking. The question is how much it would cost to fix or approve, and whether the price reflects that.

Can I negotiate on price for unapproved work?

Often, yes. The cost of getting approval, or of removing the work, is a fair point to raise. Your solicitor can also ask for a building information certificate as a condition.

Does a building and pest inspection check approvals?

No. An inspector reports on the condition of the building and may flag work that looks unapproved, but approvals come from council records.

What about apartments?

In strata buildings, renovations can also need the owners corporation's approval and sometimes a by-law. Check the strata records for approvals of past work in the unit.

Keep reading

• Building and pest inspection cost in Sydney
• Building and pest reports in NSW: how to read one
• What a building and pest report doesn't tell you
• First home buyer checklist for NSW

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