Dealing with an unauthorised structure on a property

If you’ve made an offer on a property and prior to settlement discover it has an unauthorised structure, what happens next will depend on whether the seller knew.

This is not an uncommon situation and will generally include things like a patio, garage or work shed.

How do you proceed if there is an unauthorised structure? If you move into a new home and find the structures in place haven't been authorised, your choice of recourse depends on whether the seller was informed about this prior to selling.

If the seller didn’t know:

If the seller didn’t know the structure was unapproved then the sale contract would proceed to settlement without any further obligation upon the seller. Once news of the unapproved structure is made public, it is up to you to address the matter after settlement.

Usually this would mean seeking retrospective approval from the local council. However, if the structure was found to be unsafe and posed a risk to the occupants, then the buyer can be made to remedy that or remove it, which can be expensive.

Unapproved structures can sometimes be detected by a building inspection provided it is in the brief. A building inspector can give a written report on the state of the dwelling you are considering buying, which includes things like;

• structural soundness
• rising damp
• appropriate guttering
• the quality of any additions or alterations

As a buyer you have the right to include a building inspection as a condition of your offer and acceptance.

If the seller did know:

In the second instance, if it’s the case that the seller did know but did not disclose this to the agent, then it is an entirely different situation.

Under this circumstance the contract for sale would proceed to settlement. After settlement you could then take action against the seller to recoup any damages you incurred from the seller not disclosing relevant information.

To protect your interests you can make it a condition when signing the Offer and Acceptance form that settlement is dependent upon any structures being council approved.

If it then turns out this isn't the case and there are unapproved structures, you have the right to void the contract if you wish.

Unauthorised structures are reasonably common, usually with older homes, and generally include things like patios or lean-to’s that are attached to the side of the house. As such, making them sound or removing them altogether is usually uncomplicated.

However, with unapproved structures that can pose a serious safe and insurance risk, like balconies, this can be a more difficult process so it’s important to be vigilant when looking to buy property.

Ask the right questions and engage the right building inspection.