Buying a Recently Renovated Property in NSW? What Buyers Should Check First

Buying a recently renovated property can be appealing. The work has already been done, and you can move straight in.

But if the renovation is recent, it’s worth finding out exactly what was done and whether the required approvals were obtained before you exchange contracts. This information isn’t always included in the contract. 

We regularly review contracts for newly renovated properties in NSW where it is obvious substantial work has been carried out, but there is little or no information about the renovation itself. In those cases, there are a few questions worth asking.

What work was actually carried out?

Start by finding out the extent of the renovation and when it was completed.

A new kitchen and fresh paint is quite different from a renovation involving structural work, moving walls, adding bedrooms, relocating plumbing or changing the layout of the property. If the work was carried out by the current owner, ask the seller to provide details of the works together with any plans, approvals, certificates and warranties they hold.

Was council or other approval required?

Not every renovation in NSW requires council approval. Some work may be exempt development, while other work may have been completed under a complying development certificate or development consent. 

If approval was required, ask for confirmation it was obtained. Depending on the work, there may also be other documents available, such as a complying development certificate, construction certificate, occupation certificate or certificates issued by the builder or certifier.

If the seller says approval wasn’t required, it may be worth asking them to confirm the basis for that, particularly where the renovation involved significant changes to the property.

If it’s strata, was the renovation approved?

For a renovated apartment or townhouse in NSW, you also need to consider strata approval, which is separate from council approval. The requirements will depend on the work that was carried out. Work affecting common property may require approval from the owners corporation and, in some cases, a registered by-law.

Ask the seller for copies of any strata approvals and check the strata records and current by-laws for information about the renovation. This is particularly important where walls, flooring, waterproofing, plumbing, windows, balconies or other common property may have been affected.

Who carried out the work?

For a recent renovation, it’s also worth asking who did the work. Ask for the builder’s details and copies of any building contracts, invoices, warranties or certificates the seller still holds.

For residential building work covered by the statutory warranties under the Home Building Act, those warranties can continue to apply after the property is sold. Having a clear record of who completed the work and when can therefore be useful if a defect becomes apparent later.

Depending on the type and value of the work, you may also want to ask whether Home Building Compensation Fund insurance was required and, if so, obtain a copy of the certificate.

Has the renovation been inspected?

A renovated property can present well at an open home without necessarily telling you much about the quality of the work. A building and pest inspection is particularly worthwhile where substantial work has recently been completed. 

The legal documents and approvals can tell you whether the paperwork is in order, but they don’t tell you whether the work itself has been completed to a good standard.

Ask the questions before exchange.

If you’re buying a recently renovated property in NSW, don’t assume all of the relevant information will be included in the contract. Tell your conveyancer about any recent renovations you are aware of so they can review the available documents, and where necessary, raise further enquiries with the seller.

Ideally, these questions should be dealt with before you exchange contracts. Once you have committed to the purchase, your ability to raise issues about the renovation may be much more limited.