Renovating without the necessary permits in Victoria can lead to legal issues and complications when you come to sell your property, as of December 2025. It essentially means work was completed that hasn’t been signed off by the relevant building authorities.
Currently in Melbourne, particularly in the Eastern Suburbs where we see a lot of character homes undergoing renovation, buyers and their building inspectors will scrutinise any alterations. If unpermitted work is discovered during building and pest inspections – a standard part of the sales process – it can raise significant concerns. This doesn’t automatically halt a sale, but it can lead to a price reduction to account for the cost of rectifying the work or obtaining retrospective approval. In 2026, we anticipate buyers will continue to favour properties with clear building compliance records. Sellers may be asked to provide documentation proving permits were obtained for all works. Fletchers’ experience shows that disclosing unpermitted works upfront, along with estimated rectification costs, can help manage buyer expectations. The process of obtaining retrospective approval can take time and may require further inspections, potentially extending the settlement period. Expect legal costs associated with disclosure and potential negotiation. As of December 2025, typical building inspection costs in Melbourne range from $500 to $800.
Ultimately, unpermitted renovations can introduce uncertainty into the sales process and potentially impact your property’s value.