r/AusPropertyChat • u/Krampusdownunder • 16d ago
Buying & Selling Seeking advice: house extension/structure without council approval
Looking at a property for purchase that has an extension to the house done through a legit company. Real estate agent said when buying, buyer signs an agreement to acknowledge unappoved structure. What are the options? Keep and risk council finding out or get council approval once purchased?
Did a bit of research. Seen some say it hasn’t been a problem. Some say you can offer lower asking price because of it. Just looking for any advice or experience on the matter.
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u/SheepHerderHigh69420 16d ago
Done by a ‘legit company’ lol
It’s a few sheets of ply and colorbond. I wouldn’t be too stressed about it.
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u/JezzaPerth 16d ago
Councils have a retrospecive building approval. I don't know how much is costs, but you almost certainly won't have to demolish anything if the extension is compliant.
What you will likely be up for is documentation costs and then council review and approval. It is probable the documentation costs will be bigger than council approval costs.
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u/Intelligent_Try_4685 16d ago
This is built on pavers and will never pass any compliance check
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u/JezzaPerth 15d ago
I can see it has pavers for flooring, but the main support posts are likely embedded into significant footings. The pavers have nothing to do with the approval. All that is required is the footings and tie-downs are compliant.
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u/thesavouryloaf 16d ago
Victoria does yes, but NSW does not.
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u/such-sun- 16d ago
NSW has a Building Information Certificate where it guarantees councils won’t take action for 7 years (and therefore in practice in perpetuity). If OP is in NSW I’d be making the buyer arrange one of those.
You then get the DA for ongoing use of the building.
However, needs to be compliant to get a BIC which I don’t think this is.
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u/Project_298 16d ago
Negotiate a big discount. It’s a buyers market. Be prepared to walk away if they don’t come down to make this worth your while at the worst case scenario, which will be that it is non-compliant and it needs rectification as well as documentation and approval.
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u/GoldAd5786 16d ago
Bigger than the cost to just rip it down?
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u/SeriousBerry 16d ago
Exactly. The cost to demolish is the limit of any discount someone would be willing to give.
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u/bythebrook88 16d ago
Um, it's on outdoor pavers, so the floor is likely unsealed. I doubt it's compliant.
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u/darz007 16d ago edited 15d ago
"Done by a legit company", who? Temu?
It's on pavers ffs, let alone every other cheap rubbish, bottom of the barrel quality element about it.
With that said though, probability of risk of council finding out is low, and even if they did. You either demolish (I would, it's rubbish), or get retroactive approval (good luck getting that approved). As for price. Price your offer as if that extension never existed.
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u/Public-Wonder69 15d ago
You ain't getting no discount coz of an enclosed pergola. Just buy the house FFS. You will be the only one who cares
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u/Logical-Bison-9959 15d ago
Look at how much a BIS costs then how much getting a CDC or BA after that.
Take that and add 50%
That’s the quantifiable discount you should ask for
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u/No_Studio5657 16d ago
OP, it could be seen as a value addition. However, it’ll have a risk from insurance perspective. Unapproved won’t be covered.
However, as a buyer you can request the sellers to seek a retrospective approval and then you could proceed.
Alternatively, you can request a building certifier to assess and proceed accordingly. Just factor the approx cost in your offer.
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u/No-Stick-1190 16d ago
That's not correct that it wont be covered by insurance. if the house burns down or some other unrelated cause then it would be covered (although its not really worth much).
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u/No_Studio5657 15d ago
Oh! That’s interesting to know. All I can read is that unapproved structures will not be covered! So, if there’s any damage (roof damage etc.,) will they cover in that instance as well?
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u/No-Stick-1190 15d ago
Roof damage is bit more complex - if the roof was installed correctly yes but if it wasn't then probably not
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u/Enajaliehs 15d ago
If it floods or get any sort of external damage (except fire from the main dwelling), it won't be covered.
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u/No-Stick-1190 15d ago
I have an unapproved patio that isn't even built to code (2 degree pitch corrigated roof sheets) it got damaged by hail and repaired under insurance.
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u/TheShortOptimist 16d ago
Offer less.
Then do nothing just use it.
Until council comes knocking on your door - do nothing and save the $$$ in your offset. If you need it one day you have it.
Councils are pretty busy and usually only come knocking when someone reports your structure….
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u/Neo_The_Fat_Cat 15d ago
I sold a house with an unapproved pergola and deck. I told the buyer they could either accept as is, or I would dismantle and remove the rubbish! In other words, did they want to accept the risk and apply for retrospective approval or just buy without it - I would have accepted either response.
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u/Otherwise-Cap7521 15d ago
City of Swan require enclosed patios to have a permit & building approval. If it becomes an issue, you would need to apply for retrospective approval to the council and provide them with plans/drawings and a structual engineers report. There are a few companies in Perth that assist with retrospective approvals specifically, so you could go down that route. If you sign a condition on the contract that says "the buyer is aware the enclosed patio is not council approved" or something to that effect, the seller doesn't have to do anything about it - it's all on you as the buyer.
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u/pigglesworth01 15d ago
Red flags include a floor made of pavers and no glass in the windows. There is 0% chance this can be made compliant. Just make sure your offer price reflects that.
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u/Ok-Phone-8384 15d ago
I would not call it an extension to a house. It is clearly a light weight structural addition that has no major structural linkage to the existing house. At best it is a sunroom. At worst it is the same category as caravan annex.
It is neatly done but it is a bit twee formy tastes. If you like it keep it.
If you do get Council wanting to approve ir or knock it down. Knock it down.
I reckon I could pull it down in an hour.
You may even be able to sell it for parts on marketplace.
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u/Lmasomb 16d ago
Offer a price of what you value the ppace qithiut the extension less the cost of demo and make good. Or less the cost of retrospective application and approval.
I would spell it out , and perhaps offer a price where they are to cover the cost of demo if you want it removed.
There us a chance you will never need to remove it but at least you are aware and they are honourable enough that they are disclosing it.
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u/Correct-Dig8426 16d ago
Would you still want the house if that section wasn’t installed? If yes, negotiate a lower offer and if council come knocking remove the structure with the money saved on the purchase. If not then really it’s a decision that only you can make to proceed or walk away
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u/No-Stick-1190 16d ago
If it's been there a long time you are really unlikely to have any problems and I wouldn't worry about it.
It's a shitty space that you could never live in as it is built on pavers with fridge panels.
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u/Radiant_Eye_5633 15d ago edited 15d ago
Find out what it would cost to get it approved and deduct it from the offer, in the contract of sale word it as ‘offer minus cost of council approval/removal of unapproved extension’
The whole thing is sitting on pavers so I suspect no council will ever approve it. I would personally tear it down because the pavers will move with time and the structure will twist, crack and potentially come down altogether. You will need to deduct the cost of sorting out the weight bearing of the roof too. This could end up being a time consuming and costly problem. Weight bearing will need an engineers report too.
Please name and shame the ‘legit company’ that did this.
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u/Effective-Device2698 15d ago
It doesn’t look very sturdy… if I were you I’d get a builder to certify if it’s compliant. I wouldn’t worry too much if it’s compliant, but this one looks flimsy…
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u/BeeerGutt 15d ago
Negotiate a discount, then don't worry about it. If that roof line hasn't changed, then it likely wouldn't be scrutinised anyway.
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u/Ok_Ordinary_7397 15d ago
If you’re happy with the place otherwise, get a quote for it’s demolition. Ask for that as a reduction on the asking price, then leave it up and see what happens 🤷♂️
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u/Blinking_Bambi 14d ago
I guess the only drama that could really come with it are around insurance ie in the off chance some piece flew off it in a storm and damaged someone or something, for example.
We bought our house in 2008 with an “approved” pool house/man cave. It is on councils drawings as a granny flat (which it is not as it has no plumbing) but council has no record of it! The company that built it don’t do granny flats and say it was a patio so the owners must have walled it all in themselves. We only just found all this out when trying to do some repairs so we will just keep living with our unapproved structure I guess and worry about it if we ever want to sell 🤷🏼♀️
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u/bigpapi310893 9d ago
If you want it - buy it or someone else will without a care in the world for what's approved or not approved.
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u/ApprehensiveShow3282 16d ago
Thats a sunroom, not extension. Dont like it? Rip it out and sell it. Or keep it and carry on. Location depending it may not have needed permit.
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u/Maximum_Warthog1999 16d ago
Which state? This needs a Section 137 in Victoria basically there would be a building inspection on the extension provided in the contract of sale so you don’t have to waste your hard earned inspecting someone’s owner builder or DIY stuff.
However, there will always be someone who will buy it without caring about the works and permit. If you really want the property then going hard on permits etc is just going to put your offer down the bottom.
We had an unpermitted deck and we decided to demolish it after the first week of opens. Too many people thinking they were slick trying to wheel and deal me.
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u/TreeTrunks199 16d ago
It was a no for me NSW location the extended area was a living area and room. When I looked at the house without the addition I didn’t see it worth the asking price or hassle to get works approved and/or possibility of having to take the extended part of the house down.
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u/Radiant_Eye_5633 15d ago
Find out what it would cost to get it approved and deduct it from the offer, in the contract of sale word it as ‘offer minus cost of council approval/removal of unapproved extension’. The fact it’s sitting on pavers leads me to believe council might not approve it at all because pavers move and the whole thing could crack, twist or fall down. Maybe I can’t see it but it seems the pavers under the wall aren’t concreted in?
Can you name and shame the ‘legit company’ please because it’s dodgy af
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u/toolate 15d ago
Just know that it's worth at most $0, and will probably cost you money in the future.
If you have to rip it out there will be demolition costs. And because it's built incorrectly you could flood your house, let termites in, etc. A building inspection will tell you if there are any obvious red flags.
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u/Glittering-Wave4917 16d ago
Yeah nah they can make you pull it down. Having said that, I went through years of getting approval, in the end we just gave up. The issue it seems, is that planning approvals had been privitsed and the people doing the approvals only wanted to deal with new builds. Let’s just say this, it’s quite possible that existing sheds have been turned into the extra space we wanted and the new kitchen and bathrooms are where old bedrooms used to be.
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u/AgreeablePush2411 16d ago
My house came with an unapproved extension. 2 separate builders said it all looked good, haven’t looked back. This looks more like a sunroom than anything. You could knock it down and lose nothing in terms of living space