Illegal Structures = Potential Financial and Legal Headaches

A large red flag is digitally placed in front of a modern brick house with a two-car garage, landscaped garden, and a small waterfall feature—showcasing the appeal of the Gold Coast property market.

When it comes to renovations and additions, what you can’t see on the surface may matter most.

 

Unapproved building works remain one of tfhe most overlooked risks in residential property transactions – and then can carry significant financial and legal consequences for unsuspecting buyers. While obvious warning signs such as structural damage, mould or faulty wiring tend to draw immediate attention, illegal structures which compromise any construction, alteration or renovation completed without the required approvals from local councils or private certifiers, can be far less apparent, and sometimes even the savviest of buyers have been caught.

At first glimpse, the property might appear to be your dream home and move-in ready, with a stylish granny flat, a renovated ensuite, a garage conversion, an internal upgrade, patio, deck, a second dwelling on the block, or the house may have been raised. (Red flag, let’s do some flood check.)

 

 

Buyer Beware

 

These works may appear sturdy, sound, and fit for purpose, but they can cause you a whole lot of financial headaches as they can devalue your property and make it hard to sell in the future.

 

And while the vendor might imply their unauthorized works are ‘no big deal’, they are wrong, because any building must meet Australian safety standards and comply with environmental and planning regulations.

 

According to the REIQ and REINSW, their contracts stipulate the seller must comply with any property notices issued before the contract date, but in reality, it’s very much a Buyer Beware situation.

 

 

This is where we come in

 

Because if the vendors failed to get approval, and you’ve bought it, then it’s up to you to comply with any property notices issued after the contract date, meaning you are now responsible for any unapproved structures, unless the local councils have issued an enforcement notice before the contract date. And even this can be complicated. Most agents comply with informing buyers about defects or unapproved structures, but they often only know what the vendors choose to tell them.

 

Know your inspection criteria

 

At MPG, we’re here to help, because we’ve seen people get caught out because they incorrectly assumed any illegal building works would be brought up in the building and pest inspection.

 

We work with qualified and experienced building inspectors who will report on the structural integrity of the property.

 

That’s their job.

 

And our excellent pest inspectors who can spot an infestation of termites, wasps, other insects or bats and advise on the seriousness of the population.

 

That’s their specialty.

 

Investigating potential red flags is one of ours.

 

We value add by checking with the council and undertaking the appropriate searches to confirm if all of the required approvals are in place, no matter if it’s a newly constructed or extended property, a “renovator’s delight’, or a new garage has been added. For example, last year we worked with Matilda* and Jayden, who were looking for a three-bedroom detached house with a double garage located in the tightly-held Currumbin /Tugun area, and identified a property that appeared to meet all their requirements. 

On their behalf, we made an offer subject to council searches as well as building and pest inspections, which was the right decision, because our research revealed multiple unapproved additions, including a garage extension, a large deck, and a plumbed shed construction without formal approval.

 

Matilda and Jayden withdrew their offer and secured an alternative property where all certifications were confirmed, and we later heard the first property later sold to another family, who are now reportedly navigating a complex, expensive, and uncertain retrospective approval process.

 

 

Why approved works occur

 

In some cases, homeowners (unwisely) proceed with construction because they feel it will save time or reduce upfront costs, particularly when facing tight renovation schedules. Others may simply be unaware that council approval is required, especially for smaller projects such as garden sheds, carports, or patios- however, this is less common than in previous years. In other cases, initial approvals were granted, but the final inspection certificate was never issued, leaving the property technically non-compliant despite completed construction. 

 

 

Due diligence is critical

 

With councils increasingly enforcing compliance, we know that undertaking thorough due diligence is essential for your peace of mind, particularly in competitive markets where buyers may feel pressured to act quickly.

 

So, confirming approvals before signing a contract can help prevent unexpected rectification costs, legal complications, and potential impacts on resale value.

 

Buying a home doesn’t have to be stressful. At Maynard Property Group, Emma and Craig are here to help. If you have any questions, book a no-obligation Discovery Call

 

 

 

*Names changed to respect client privacy. 

*Last updated: March 2026