Buying a Property with an Unapproved Structure in New South Wales: What You Need to Know

So, you’ve found your dream property in New South Wales - except, there’s a catch: it has an unapproved structure. Don’t panic! While it may sound a bit daunting, purchasing a property with an unapproved structure isn’t the end of the world. In fact, many buyers navigate this issue successfully every day.

Here’s your guide to understanding what you need to know before diving in:

What is an Unapproved Structure?

First things first, what exactly does "unapproved structure" mean? An unapproved structure refers to any building, extension, or alteration on a property that hasn’t been formally approved by the local council or a principal certifying authority. This could include a shed, a garage, a deck, or even a second-story addition that was built without the necessary permits.

Why Should You Care?

You might be thinking, "It’s just a shed, what’s the big deal?" Well, while it may seem like a minor detail, purchasing a property with an unapproved structure can have significant legal, financial, and safety implications. Here’s why:

1. Legal Issues: Without council approval, the structure may not meet local zoning laws or building codes. This can lead to fines, penalties, or even the need to remove the structure entirely.

2. Safety Concerns: Unapproved structures may not adhere to safety regulations, putting you and your family at risk. This can be particularly concerning if the structure was poorly constructed.

3. Insurance Hurdles: Insurance companies may be reluctant to cover a property with an unapproved structure, especially if they see it as a risk. This can result in higher premiums or no coverage at all.

4. Resale Complications: If you plan to sell the property in the future, potential buyers may shy away from a property with unapproved work, especially if it needs to be rectified.

What Can You Do About It?

There are steps you can take to ensure you’re making a well-informed decision when purchasing a property with an unapproved structure:

1. Do Your Research: Before making an offer, dig into the history of the property. Check with the local council to see if there are any records or permits for the structure in question. It’s essential to understand the potential risks and costs involved in getting the structure approved. Additionally, make sure to submit enquiries to the seller asking if they have any approvals or permits for the structure.

2. Get Professional Advice: Speak with a Property Lawyer to get a clear understanding of the legal aspects surrounding the unapproved structure. A Lawyer can help you navigate zoning laws, building regulations, and potential liabilities.

3. Consider the Costs of Approvals: If you still love the property, ask a licensed builder or architect to assess the structure and provide an estimate of the cost and time involved in obtaining council approval or making any necessary changes to be able to obtain council approval. It’s vital to factor these costs into your decision-making.

4. Negotiate with the Seller: If the structure isn’t up to code and needs to be rectified, you may be able to negotiate a reduction in the purchase price or request the seller make the necessary repairs before settlement. Alternatively, you can negotiate for the seller to obtain a Building Information Certificate or a Final Occupation Certificate. If you decide to request for the seller to obtain either of the mentioned Certificates, speak to your Lawyer about your contractual right to comply with any work orders.

5. Understand Your Responsibilities: If you decide to move forward with the purchase, be aware that you may need to take responsibility for fixing the structure and obtaining the necessary approvals. This can sometimes be a lengthy and costly process, so make sure you're prepared.

Final Thoughts: It’s Not the End of the World!

Buying a property with an unapproved structure doesn’t have to be a deal-breaker. With the right research, professional advice, and careful planning, you can tackle the issue head-on and still secure your dream home. Just be sure to weigh the risks and costs involved.

So, whether it’s a quirky garage, a charming deck, or a mysterious extension, keep calm, and take the right steps. With a little effort, you’ll be enjoying your new property in no time, unapproved structure and all!

Need help with a property purchase or navigating legal concerns in New South Wales? Don’t hesitate to reach out! We’re here to help every step of the way.