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Hi everybody - George Sourris, Empire Legal.

Today's topic: Council building approvals and Queensland property. What do I need to do?

 Great question George. This is a tricky area of the law that often gets overlooked, as it's not well understood.

Okay, so you want to renovate or add bathrooms, decks, extensions, sheds, driveways, pergola, to name a few. You apply to your local council to get permission to do the works to a property. You get permission, you do the works, and then you need the final sign off from a private certifier to ensure the works are completed in a manner that is compliant with the council approval and the building code.

You may have heard of a Form 21, Final Inspection Certificate, Form 16 or Form 12. These forms are renovators tickets to properly completing the job.

Making it to the final inspection certificate step, lodged safely with council, is the gold standard. However, it is often the case that building works may not have a final inspection ticked off. Or even worse - a record of receiving council approval to begin with. A prudent seller would ensure their property has all relevant forms submitted, to tick off the boxes and negate the possibility of issues arising when they sell. 

Guess what? There's no standard term in the REIQ contract that would allow a buyer rights of termination or compensation if they're missing approvals or final inspections. In Queensland, it's largely "buyer beware". So, if a buyer has concerns about a property, such as ensuring all appropriate approvals are in place, it's best to make sure they investigate and catch any potential issues early, i.e. before they sign a contract to sell, or while it's within the cooling off period. 

Alternatively, If a buyer has concerns about building approvals or final inspection certificates, we would strongly suggest they negotiate to include a due diligence clause in the contract. This would allow them some time after signing the contract to obtain council searches and be satisfied before they're locked in.  

For example, say you add a shed to your property, you may need to contact council to get the final inspection certificate, or Form 21.  Often, shed contractors will scope out of getting the Form 21 and leave it up to the vendor to lodge. 

Searches.

A buyer can engage their solicitor to perform searches with local council for whether a property has building approvals.

Keep in mind, each local council has their own time frames and costings. For Brisbane City Council, you can obtain building approvals dating back to 1946.

There's a standard search, which is within 10 business days after lodgement date and costs $94.15 as at the time of writing this blog.

Or fast-track search - within 3 business days after the date of lodgement at the low price of $193.40. 

Just because a property does not have a final approval, doesn't mean it cannot be obtained. If the original certifier cannot be found or has retired or liquidated their business, a new certifier will need to be engaged to inspect the works and sign off, providing the final inspection certificate. 

HOT TIP - also important to note, this applies to pool safety. When selling a property, a current pool safety certificate, or notice of no pool safety certificate, must be provided by the seller. You can learn more about this in a blog we've done, all about pools, available here. 

Wrapping up.

When it comes to building approvals and final inspection certificates, it's often not thought about until it's too late. If you're a buyer who is concerned about council approvals being in place, get yourself the relevant paperwork to make sure everything's been ticked off before you sign, or include a due diligence clause.

Otherwise, if you're already under contract and want to ask that question later, keep in mind you are not going to have a right to terminate if any skeletons come out of the final inspection certificate closet.

 Special shout out to Alec McEwan from McGrath Wynnum Manly for this blog suggestion. Like, subscribe, share. I say it every week, if you're not liking, subscribing or sharing - do it!  

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George Sourris. Empire Legal.

If you have any questions, you can email me: george@empirelegal.com.au. 

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Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.