Strata works without approval - what happens next?

Strata renovations seem straightforward until unexpected legal and financial roadblocks turn them into a costly headache. Many strata owners assume minor remedial projects don’t require approval and proceed without it, but that’s not always the case. Non-compliant works that breach planning laws or the Design and Building Practitioners Act (DBPA) can result in financial penalties, legal complications and even forced removals.

At All Suburbs Strata Management, we bring over 40 years of experience in residential strata management in Greater Sydney, Nepean and the Central Coast. Whether you’re planning refurbishments or have already undertaken them, here’s what you need to know.

Certain strata renovations require formal approval, particularly those involving structural changes, plumbing, electrical work or alterations to the building’s façade. Approval from the owners corporation and local council is essential for modifications that affect the safety, integrity or external appearance of the property.

Where confusion often arises is that some minor renovations fall under exempt development, meaning they don’t require council approval if they meet specific criteria under NSW planning laws. Complying development applies to works that meet pre-set standards and can be fast-tracked with certification. However, anything outside these categories generally requires a formal development application and approval.

The DBPA improves accountability in the construction industry, particularly for residential apartment buildings. It sets strict requirements for design and building practitioners, ensuring regulated works are properly documented. Strata owners undertaking major renovations must engage registered professionals to certify their work to avoid defects or legal issues.

Penalties under the Environmental Planning and Assessment Act (EPA):
The EPA imposes heavy fines for unauthorised building works, with penalties reaching up to $5 million for corporations and $1 million for individuals. If the breach continues, daily penalties apply. Serious violations can also lead to costly legal action.

Council enforcement:
Local councils have the authority to issue enforcement orders for non-compliant works, including stop-work notices, demolition orders and mandatory repair directives. These orders can require immediate action, forcing owners to halt construction, remove illegal structures or restore the property to its original condition—all at their own expense.

Most strata insurance policies exclude coverage for unauthorised building works. If renovations or structural changes don’t comply with planning laws or strata by-laws, insurers can refuse to cover any related damage or defects.

If unapproved renovations result in property damage, liability issues or safety hazards, insurers can deny claims, leaving the owner or owners corporation financially responsible. This applies not only to repair costs but also to potential third-party claims arising from unsafe or defective construction.

Insurance providers also require full disclosure of any modifications made to a strata property. If unauthorised works are not declared at renewal, insurers may refuse to cover the entire policy, leaving the building exposed to financial and legal risks. Some insurers may also demand rectification before renewing coverage.

If you have already completed unauthorised works, you will need to apply for a Building Information Certificate (BIC) to have them retrospectively approved. However, councils will only issue this if they are satisfied the works meet all legal and safety requirements. If approval is denied, you may be issued with an order for modification or removal.

To support a BIC application, owners may need compliance certificates from qualified contractors or certifiers, confirming the works meet building standards. If proper documentation was not obtained during construction, securing retrospective compliance can be challenging, and additional inspections or modifications may be required.

Strata managers and legal experts can help navigate the approval process, liaise with councils and address compliance issues. If enforcement action has already been taken, professional advice can assist in negotiating solutions and preventing further financial penalties or legal consequences.

Ultimately, cutting corners can lead to significant financial and legal woes, so it’s essential to understand the requirements before starting any work on your strata property.

If you’ve carried out works without the necessary approvals, start by consulting your strata manager to understand your scheme’s by-laws and potential compliance options. You may also need to engage additional professionals to assess whether retrospective approval is possible.

At ASSM, we have over 40 years of experience in strata management for residential, community, commercial and industrial properties, and we specialise in compliance.

Are you looking for a reliable strata manager? Our team provides outstanding service and clear communication. The goal of everything we do is simple: to make life easier for you.

If you are considering buying into a strata scheme or want to secure a professional and qualified team, contact ASSM today.