What are the implications of buying an investment property without an unapproved extension? The extension is ground floor rumpus with a laundry and toilet.
Hi Julie,
If you buy a property with an unapproved extension the local council can make you pull it down/remove it at your cost. My advice would be to sign a contract with a clause in it that is subject to the vendor having the extension approved by a specified date. Have the clause written by your solicitor.
CheersHi Julie
In reality, councils generally don't force the removal of unapproved alterations unless they are a flagrant and very obvious departure from regulations. I have only heard of this happening once and in that situation the building was completely different to that approved by Council. Even that is still ongoing and the owner has not yet been forced to change the building.
I think it is a case of buyer beware. You know that the extension has not been approved and you assume the risk (albeit very small) that the Council will force you to remove it.
You could use the fact that the extension has not been approved to negotiate the price down. If, for example, the extra room adds another $60,000 to the property, then try to bargain the price down by that much. That way, in the unlikely event that the Council does force you to remove the extension, then you haven't lost anything.
Cheers
K
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