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Selling a Brisbane Property with Unapproved Building Works: What Sellers Need to Know

Unapproved works are more common than most Brisbane sellers expect. How you handle them before listing will shape your disclosure obligations, your negotiating position, and your buyer's confidence in the contract.

Unapproved building works are structures or renovations carried out without obtaining the required development approval or building approval from Brisbane City Council. The most common examples are patios, carports, decks, sheds, garages, room conversions, and granny flats built without council sign-off. If someone has added or modified a structure on your property at any point and did not go through the council approval process, there is a reasonable chance it falls into this category. It is more common in older Brisbane properties, particularly those that have passed through several owners over the decades, but it appears across all property types and age ranges.

Most sellers are not aware their property has unapproved works until they start the conveyancing process or until a buyer's solicitor raises it. By that point, you have less room to move. Understanding the situation before you list gives you options. Discovering it during contract negotiations does not.

Why it matters when you are selling

Queensland sellers have a duty to disclose known material facts. A material fact is any fact that a reasonable buyer would consider relevant to their decision to purchase or the price they would pay. Unapproved works that affect the property's structural safety, its insured value, or its future use will generally meet that threshold. If you know about unapproved works and do not disclose them, you are exposed to claims of misrepresentation or breach of your contract's disclosure obligations.

The practical test is straightforward: would a buyer reasonably want to know? For a small garden shed built without approval, the answer is less certain. For a granny flat that generates rental income and has never been approved, the answer is clearly yes. When in doubt, disclosure is the safer path. Your solicitor can help you assess what requires disclosure in your specific circumstances.

What buyers' solicitors will check

An experienced buyer's solicitor will request building approval records from Brisbane City Council as a standard part of due diligence. Any structure that does not appear on council's records is a red flag. Solicitors can cross-reference what is visible on the property against what has been approved, and they often do this with the help of a building and pest inspector who identifies structures that look like additions or alterations.

If a buyer's solicitor identifies unapproved works that were not disclosed, the buyer may seek a price reduction, request the works be remedied before settlement, or in some cases use the discovery as grounds to terminate the contract. None of those outcomes is desirable after you are already under contract.

What sellers can do before listing

You have three main paths when dealing with unapproved works, and the right one depends on the nature and extent of the works, your timeline, and your budget.

Seek retrospective approval from BCC. You can apply to Brisbane City Council for a building approval for an existing structure. This involves a council inspection and may require rectification work if the structure does not meet current building standards. Retrospective approval takes time and is not guaranteed, but it resolves the issue cleanly. If the structure is well-built and compliant in all practical respects, approval is often obtainable. Get a building certifier to assess the structure before you apply so you know what you are dealing with.

Disclose and price it in. For works that are minor or where retrospective approval is not practical, you can disclose the unapproved status to buyers, reflect the compliance risk in the asking price, and allow buyers to factor the cost of regularisation or removal into their offer. This approach is honest and often achieves a satisfactory outcome, but it does reduce the buyer pool. Some buyers and some lenders will not proceed with properties that have known unapproved works regardless of the price adjustment.

Remove the structure before listing. In some cases, the simplest and cleanest solution is demolition before you go to market. If the unapproved structure adds little value to the sale anyway, removing it eliminates the disclosure issue entirely and simplifies the contract. This works best when the structure is genuinely ancillary, such as a second shed or an old pergola that has seen better days.

The risk of non-disclosure

If you knowingly withhold information about unapproved works and a buyer discovers them after settlement, you may face claims for misrepresentation or breach of the contract's disclosure obligations. The buyer's remedies can include damages and, in serious cases, rescission of the contract. Beyond the legal exposure, non-disclosure tends to surface at the worst possible moment, often during a buyer's building inspection or when the buyer applies for building insurance and the insurer queries the approvals. Dealing with it then is far more disruptive and costly than managing it before listing.

Brisbane City Council's enforcement role

BCC's building compliance team can issue compliance orders requiring the rectification or removal of unapproved structures. This is a risk that stays with the property, not with any particular owner. If a compliance order is issued after settlement, the obligation falls to the buyer. For a buyer who was not told about unapproved works, discovering a compliance notice after settlement creates a legitimate basis for a claim against the seller.

BCC does act on complaints and on its own audits. The risk is not purely theoretical, particularly for more prominent structures such as secondary dwellings or large commercial-grade sheds. Lenders who become aware of a compliance order may also affect the buyer's finance approval, which can unwind a settled transaction.

The practical starting point

Before listing, engage a building certifier or building consultant to review any structures you are uncertain about. They can tell you quickly whether something is likely to have been approved, whether retrospective approval is realistic, and what rectification (if any) would be required. Knowing the issue before you list gives you time to address it on your terms. Discovering it during a buyer's due diligence period means you are negotiating from a weaker position with a clock running.

Your solicitor should also be involved early. They can advise on your specific disclosure obligations, review the contract's warranties, and ensure you are protected regardless of which path you take with the works themselves.