Hi,
I am in the process of purchasing a property which has a house and a separate granny flat. both seem to be in good condition however I am not sure if the granny flat has council approval. it has separate water and electricity meters to the main house.
My question is should I pay less is the granny flat does not have council approval? Is it legal to rent it out if there is no approval? How much should I try to get off purchase price in this situation? The price we agreed to is $350k, the house on its own is probably worth $290k.
Is it hard to get it council approved? or does it have to be torn down and started again?
thanks,
MartinHi Martin,
Sould be relatively easy to determine if the granny flat is approved. Any structure / additions should be shown on the DP (Deposited Plan) that would form part of the contract.
Council can order for the structure to be removed if it dosn’t have approval, however, depending on the council, you can get approval post construction. Obviously this would be much better sorted out prior to buying the property.
Good luck!
Why do you think the flat does not have council approval? Have you asked the owner? Have you asked the council?
In NSW you can apply to the Council for a building certificate, which if issued means the Council will not take any action.
CRJ is on teh right track. Applying to get a copy of the plans and building approvals from the council is relatively easy. They cost between $20-70 depending on the council.
Hee hee, or you could be in our position where our house is pre-council keeping records, so even if we put something up, council can’t take it down coz they can’t prove when it was put up!!! HA HA HA!!! Not that we would do that, but hey….
If the granny flat isn’t approved, I would find out what hoops you would have to jump through to get it approved and the cost and have that money plus 10% (gotta allow a little extra!) to be taken off the contract price.
Good luck and keep us posted!
Steph.Success is 1% inspiration and 99% perspiration.
Originally posted by Scremin:CRJ is on teh right track. Applying to get a copy of the plans and building approvals from the council is relatively easy. They cost between $20-70 depending on the council.
Hee hee, or you could be in our position where our house is pre-council keeping records, so even if we put something up, council can’t take it down coz they can’t prove when it was put up!!! HA HA HA!!! Not that we would do that, but hey….
If the granny flat isn’t approved, I would find out what hoops you would have to jump through to get it approved and the cost and have that money plus 10% (gotta allow a little extra!) to be taken off the contract price.
Good luck and keep us posted!
Steph.Success is 1% inspiration and 99% perspiration.
Well I checked with the council to see if they were approved and they could not find it on their computer system which only goes back the last 12 years. so either the conversion to granny flat is not approved or it was approved more than 12 years ago. I went out to the property last night and noted that it is approximately 40cm from the back and side boundaries of the property. this is the reason i think it may not be council approved. I thought all dwellings had to be more than 90cm from the boundary of the property… but then again, if the granny flat was built years ago the rules may have been different then.
Writing a friendly, enquiring letter to Council asking the legality of the granny flat. Request them to call you by telephone. Address the letter to the Town Planning Manager If you don’t hear in 10 days then call the Town Planning Dept. They should be first able to tell you whether thy’ve recieved your letter and advise who is responsible for answering your query.
House can be built on the boundary with certain conditions regarding openings(fire separation), gutter, overshadowing, overlooking which means it first must be applied for through the Development Application process (NSW). Houses built 90cm from boundary can usually get approved through a “Complying Development Certificate” system issued through council or a private certifying company.
A building certificate does not officail approve the structure, it just certifies the building as having structural integrity under the Building Code of Australia. Retrospective/retroactive approval in NSW does not exist. I would be worried if there is no approval because your insurance company may have a way out of no replacement if destroyed. Also no existing rights can apply for an illegal structure.
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