In Queensland — particularly in the hinterland — unapproved structures are far more common than many buyers realise.

As a real estate agent, I regularly come across properties where sheds have been converted into liveable spaces. In many cases, this happened because obtaining council approval was historically expensive, time-consuming, or simply impractical. Owners did what made sense at the time and never gave it a second thought...until they decided to sell.

At sale time, these spaces are often seen by sellers as major assets: extra bedrooms, guest accommodation, or rental income.

However, from a buyer’s legal and insurance perspective, unapproved works can be a serious liability.

Council may require rectification, removal, or costly retrospective approvals — and insurers may decline claims related to unapproved structures.

In town, the issue often presents as enclosed downstairs areas with bathrooms and kitchens added. While they may look compliant and even generate strong rental income, factors like beam heights or unapproved wet areas can render the space non-habitable under building regulations.

The challenge for buyers is that these issues are not always obvious. Sometimes the agent doesn’t know the works aren’t approved, and sometimes the lack of approval isn’t clearly understood until a solicitor undertakes due diligence.

Unapproved works can lead to:

• Council rectification or removal orders
• Insurance claim refusals
• Costly retrospective approval/certification (if possible)
• Other unexpected costs  
• Lost sales

Even spaces that rent well or look compliant may not meet current building standards, particularly with ceiling heights, beam clearance, or unapproved bathrooms and kitchens.

This is where Title Insurance becomes particularly valuable.

Title Insurance protects property owners from financial loss arising from hidden or unknown issues relating to ownership or past use, including unapproved building works completed by previous owners.

It’s a one-off premium paid at settlement by the buyer and provides cover for as long as you own the property. 

In Queensland, Title Insurance can also cover boundary discrepancies, errors in council records, fraud, lack of legal access, and certain government acquisition rights.

It’s important to note that Title Insurance doesn’t replace building and pest inspections or legal advice but it does protect against risks those processes can miss.

For buyers considering older properties, acreage, dual-living setups, or “bonus” spaces that seem too good to be true, Title Insurance offers an added layer of protection and peace of mind in an increasingly complex market.

See more at Canstar