If you’re gearing up to sell your property in Canberra, you might think that a backyard deck or a cosy pergola will charm potential buyers. And often, it will. But if that deck, pergola, or carport is unapproved, you might be in for some surprises when it’s time to negotiate with buyers.
So, how much should you worry about an unapproved structure? Is it a deal-breaker? Let’s dive into what sellers need to know about Canberra’s unapproved structures, why it’s important to be aware, and how a lack of approval can sometimes turn a smooth sale into a bumpy negotiation.
What Is an Unapproved Structure?
An unapproved structure is any addition or modification that hasn’t been signed off by the ACT government. Rob Lowe from ACT Property Inspections estimates that around 30-40% of Canberra properties have at least one unapproved structure, from backyard sheds and carports to sprawling decks and pergolas.
Here’s the irony: while unapproved structures technically go against regulations, the government isn’t actively patrolling neighbourhoods looking for rogue pergolas. In reality, most unapproved structures stay under the radar. According to Chamberlains Law Firm, ACT government don’t step in very often, but warn that potential risks do not go away over time.
Why It Matters When You Sell
While the ACT government isn’t actively looking for unapproved structures, buyers are. For buyers, an unapproved structure could signal potential issues with safety, structural integrity, and insurance coverage.
In many cases, these structures are soundly built—possibly even by qualified professionals— but maybe the owner just didn’t see value in the additional expense of the approval process. Yet, despite being well-constructed, the lack of approval can make things complicated when it’s time to sell. Solicitors often advise buyers to proceed with caution—or even avoid—properties with unapproved structures altogether. Here’s why:
Insurance Complications: Insurers may refuse to cover unapproved structures, meaning buyers could face limited protection on the property.
Loan Challenges: Some lenders won’t approve a loan for properties with unapproved structures, especially if they’re substantial additions (internal ones in particular) or ones that won't be insured.
Buyer Caution: Buyers may negotiate the price down or walk away to avoid potential fines or repairs, even if the structure is well-built.
Can You Get Retrospective Approval?
The good news is you can apply for retrospective approval, although it involves some costs:
Application Fees: Around $500 to $2,000.
Inspections and Adjustments: Expect to pay $500 to $1,500 for inspections and more if modifications are needed.
Professional Plans: Hiring someone to draw up plans can cost another $500 to $2,000.
In total, you could spend between $1,500 and $10,000 depending on the structure. But with approvals in place, you’ll ease buyer concerns and increase the appeal of your property—and in doing so, protect the sale price of your property.
Sometimes, a lack of approval is as simple as an administrative oversight—a quick, low-cost fix. Other times, it’s more complex, like when someone’s well-meaning grandpa has built a sunroom without knowing any thought about building codes, leaving a structure that’s completely unapprovable.
Bottom Line
If you want to avoid hassles with buyers and get the best price, addressing unapproved structures before selling your property may be worth exploring - especially if the unapproved structure is internal or part of the main construction of the home. With approvals in place, you’re setting the stage for a smoother sale—and potentially a higher offer.
Where to go for advice:
Of course, in the first instance Your Property Agent can help.
And the following have provided information and advice for the writing of this article and would be happy to chat in more detail:
ACT Property Inspections: info@actpropertyinspections.com.au
Chamberlains Law: Kellie.White@chamberlains.com.au
Hendrick Financial: stephanie@hendrickfinancial.com.au
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