Selling a House With Unapproved Building Works in NSW
The enclosed patio, the converted garage, the deck nobody got approved. You can still sell, but how you handle it decides whether the sale goes smoothly.
It comes up on seller calls all the time. “The previous owners enclosed the back verandah. I don’t think it was ever approved. Is that a problem?” Unapproved building works are common across the Hunter and Lake Macquarie, and having them doesn’t stop you selling. What matters is dealing with them before a buyer’s conveyancer finds them for you.
At a glance
- You can legally sell a property with unapproved works in NSW, but staying quiet about them is risky.
- Buyers’ conveyancers and building inspectors actively look for them, and they can stall or sink a sale during cooling-off.
- A Building Information Certificate from council is the main way to regularise them. The other option is selling as is, with the right contract terms.
What counts as unapproved building works?
Unapproved works are structures or alterations built without the development consent or complying development certificate they needed, or built differently from the plans that were approved. The ones we see most often are:
- Carports, verandahs or patios that have been enclosed and turned into living space
- Garages converted into bedrooms, rumpus rooms or studios
- Decks, pergolas and retaining walls above the size limits for exempt work
- Bathrooms or kitchens added under the house
- Granny flats and large sheds
- Extensions that were approved, but never received a final occupation certificate
Not everything needs approval. Some smaller works, like certain sheds, decks and pergolas, are exempt development in NSW if they meet strict size and location standards. That’s worth checking before you assume there’s a problem. If your concern is a missing final sign off, our article on whether you need an occupation certificate to sell covers that in more detail.
How buyers find out
Most sellers assume that if nobody asks, nobody will know. In practice, the buyer’s side has several ways to find it.
- Their conveyancer compares what’s on the property with the approvals in council’s records.
- Their building inspector flags structures that look non-compliant or unapproved.
- Their lender’s valuer notes it, which can affect the loan.
- They simply ask. Questions about approvals are among the most common we receive from buyers’ conveyancers.
Many buyers also take out title insurance, which can cover unapproved works left behind by a previous owner. It won’t cover anything the buyer knew about before settlement, though, which is one more reason their conveyancer asks the question.
If it comes to light after exchange, the buyer may still be inside the cooling-off period and can walk away. At that point you’ve lost your buyer, your momentum, and possibly your next purchase.
“Unapproved works rarely kill a sale on their own. Surprises do.”
Selling with unapproved building works: your options
Here’s how we work through it with sellers.
Find out what’s actually approved
Request council’s records for the property and compare the approved plans against what’s there now. This tells you exactly which structures are in question, and often shows that something you worried about was approved years ago.
Decide whether to regularise it
If the works aren’t approved, you can apply to council for a Building Information Certificate through the NSW Planning Portal. You’ll typically need a survey report, plans, and sometimes engineering or compliance reports. Council may ask for work to be done before it issues the certificate, and approval isn’t guaranteed, so allow time and budget for it.
Or sell as is, with the right contract terms
If regularising isn’t practical, we can include a special condition in your contract that identifies the structure and has the buyer accept it as it is, without any right to object or claim. Buyers take this into account, and it may affect the price you achieve, but everyone knows where they stand from day one.
Answer the buyer’s questions honestly
When the buyer’s conveyancer asks about approvals, give a straight answer. We’ll help you word it, but it needs to be accurate.
In plain English
A Building Information Certificate is council saying, “We won’t make you pull that down or rebuild it.” Once it’s issued, council can’t order the building to be demolished, altered or repaired because of anything that existed before that date, and for seven years it can’t take action over ordinary wear and tear either. That certainty is exactly what buyers and their lenders want to see.
It isn’t a development consent, though. It won’t, for example, approve a granny flat being rented out as a separate home, and it doesn’t stop council issuing fire safety orders.
Being upfront now is almost always cheaper than a dispute after exchange.
The risks of saying nothing
A collapsed sale. The buyer finds it during cooling-off and walks away, or tries to renegotiate the price.
Finance problems for the buyer. A valuer flags the works, the loan is reduced or delayed, and your settlement moves with it.
Claims after settlement. If you knew about the works and gave a misleading answer, you could face a claim from the buyer even after the sale is finished.
Owner-builder work. If you did the work yourself under an owner-builder permit within the last seven years, the Home Building Act adds its own requirements for your contract. Tell us early so we can include them.
Why timing matters
In NSW, your contract has to be ready before your property is marketed. A Building Information Certificate can take weeks or months, and any special conditions need to be in the contract from the start. The best time to raise unapproved works with us is before you sign with an agent, not after the first buyer’s conveyancer asks the question.
The short version
Unapproved works don’t stop you selling. Find out what’s approved, decide whether to regularise it with a Building Information Certificate or sell as is with the right contract terms, and be honest when the buyer asks. Handle it before you list and it becomes a detail rather than a deal breaker.
Getting ready to sell? Our seller questions hub covers the rest of the process, and the questions vendors are asked before a buyer signs shows what to expect from the buyer’s side.
Not sure what’s approved on your property?
Talk to Justin, Julie, Amanda or Nicole before you list. We’ll help you work out where you stand and build it into your contract properly.
