How Unapproved Structures Affect Property Settlement in Perth
That DIY shed out the back. The patio that went up one long weekend. The garage that quietly became a home office. Unapproved structures are more common in Perth properties than many buyers and sellers realise. And they have a habit of surfacing at the worst possible time: during settlement.
If you’re buying or selling a home in Western Australia, understanding how unpermitted structures affect the settlement process could save you from costly delays, renegotiations, or legal complications down the track. Here’s what you need to know.
What Counts as an Unapproved Structure?
In Western Australia, most structural additions or alterations to a property require a building permit from the local council before work begins. An unapproved structure is any improvement built without the required permits, or completed in a way that doesn’t comply with the approved plans.
Common examples include:
- Patios, decks, and pergolas added without council approval
- Sheds or outbuildings that exceed exempt size thresholds
- Garage or carport conversions to habitable rooms
- Granny flats or secondary dwellings without planning and building approval
- Pool fencing that doesn’t meet current safety standards
- Internal renovations that affected load-bearing walls or changed the building’s footprint
It’s worth noting that “unapproved” doesn’t always mean “poorly built.” Some structures are well-constructed but were simply never registered with the council. Either way, the lack of paperwork creates real complications when it comes time to sell.
How Do Unapproved Structures Affect the Settlement Process?
In Western Australia, sellers are legally required to disclose known defects and unapproved structures to buyers as part of the sale contract. Failing to do so can expose a seller to legal claims after settlement. In some cases, it can also give the buyer grounds to withdraw from the contract entirely.
For buyers, the risk works the other way. Purchasing a property with an unapproved structure means inheriting the compliance problem. That can mean unexpected costs to rectify, demolish, or retrospectively approve the structure. Costs can run into tens of thousands of dollars depending on the scope of work involved.
Unapproved structures can delay or complicate settlement when they’re discovered late in the process, particularly during a final inspection or a title search. At that point, the parties may need to renegotiate the contract, seek legal advice, or find a practical resolution before the settlement date can proceed.
The issue also has insurance implications. Some insurers may limit or void coverage for damage caused by or related to an unapproved structure, which affects a buyer’s ability to obtain adequate cover from day one.
What Should Buyers Do?
If you’re purchasing a property in Perth, it pays to ask questions early, before you’re committed to a settlement date.
- Request a building inspection from a qualified inspector who specifically checks for unapproved structures, not just structural defects.
- Search the council’s records for building permits associated with the property. Many Perth councils allow online searches, and your settlement agent can assist with identifying the right channels.
- Raise any unapproved structure in your contract negotiations. You may be able to negotiate a price reduction, request the seller rectify the issue before settlement, or have funds held in trust pending resolution.
If you discover an unapproved structure after signing the contract, seek advice from a qualified solicitor as soon as possible. A settlement agent can help manage the administrative side of these situations, but legal advice about your rights under the contract is the role of a solicitor, not a settlement agent.
Concerned about a property you’re purchasing? Speak with the team at Strategic Settlements early to understand what’s involved.
What Should Sellers Do?
The best thing a seller can do is deal with unapproved structures before the property even hits the market.
- Get a pre-sale building inspection to identify any structures that may not have council approval.
- Contact your local council to check what’s on record for the property. If a structure was built without permits, you can apply for retrospective approval, sometimes called a building permit for existing work.
- Disclose unapproved structures in the contract. Transparency upfront is far better than a dispute during settlement. Your real estate agent and conveyancer (or settlement agent, as they’re known in Western Australia) can help you document disclosures correctly.
- Factor in costs. If retrospective approval isn’t possible and demolition is required, adjust your sale price accordingly. A price reduction can give the buyer funds to manage the issue after settlement, but this needs to be formally agreed in writing.
Attempting to conceal an unapproved structure is not just ethically problematic. It carries real legal risk in Western Australia. If in doubt, disclose.
How Can a Settlement Agent Help With Unapproved Structures?
Settlement agents in Perth play an important role in managing the paperwork, communication, and coordination that surrounds a property transaction, including when unapproved structures are in the picture.
A settlement agent can:
- Help identify disclosure obligations and ensure the contract documentation reflects the situation accurately
- Liaise with councils, real estate agents, and other parties to keep the settlement process on track
- Coordinate adjustments to settlement timelines if additional steps are needed before the transfer of title can proceed
- Advise on the administrative steps involved in seeking retrospective approvals through local government
What a settlement agent cannot do is provide legal advice. If an unapproved structure raises complex questions about contract rights, liability, or potential litigation, you’ll need to engage a qualified solicitor. A good settlement agent will tell you clearly when that line has been reached, and point you toward the right support.
The experienced team at Strategic Settlements has helped Perth buyers and sellers work through complex property situations for years. If you have a property with a complicated history, getting a settlement agent in Perth involved early makes a genuine difference.
Frequently Asked Questions
Can a settlement still go ahead if there’s an unapproved structure on the property?
Yes, in many cases settlement can proceed even where an unapproved structure exists, particularly if the issue has been disclosed and the parties have agreed on how to handle it (for example, a price reduction or a hold-back arrangement). Each situation is different, and a settlement agent can help you understand the options. For complex legal questions about your rights under the contract, speak with a solicitor.
Who is responsible for an unapproved structure after settlement?
Once settlement is complete and the property has transferred to the buyer, the new owner generally assumes responsibility for any unapproved structures. This is why buyers are strongly advised to investigate before settlement, not after.
What is retrospective building approval and how does it work in Western Australia?
Retrospective approval (sometimes called a permit for existing work) is an application made to your local council to formally approve a structure that was built without permits. In Western Australia, councils assess these applications against current building codes. Approval is not guaranteed, and some structures may need modifications to comply. The process, timelines, and fees vary between local governments across the Perth metropolitan area. The Building Commission WA is the relevant state authority if you need further guidance.
Can a settlement agent tell me whether a structure needs council approval?
A settlement agent can help you identify what building permits are on record for a property and direct you to the relevant council resources. However, formal advice about whether a specific structure requires approval, or whether it meets current building codes, is the role of a building surveyor or local council officer, not a settlement agent.
Don’t Let Unapproved Structures Derail Your Settlement
Unapproved structures are a common feature of the Perth property market, and they don’t have to mean a failed settlement. With the right information, early disclosure, and professional support, most situations can be resolved. It’s simply a matter of knowing what you’re dealing with before settlement day arrives.
If you’re buying or selling in Perth and there’s an unapproved structure in the mix, the team at Strategic Settlements is here to help you work through the process with clarity and confidence.
Get a quote or contact us today to discuss your property settlement needs with an experienced settlement agent who knows the Perth market.
Disclaimer: The information provided in this article is general in nature and does not constitute legal, tax, or financial advice. Settlement agents manage the legal transfer of property and the settlement process. They do not provide legal advice regarding complex matters such as contract disputes, tax implications, or property law. Individual circumstances vary. We recommend consulting a qualified solicitor or relevant professional before making decisions based on the information in this article.
