Between Projects: In Praise of General Contractors

Interesting Building Approval Facts

You might have encountered the phrase building approvals as a real estate developer. However, you might have taken the issue lightly since you do not comprehend the concept. In reality, building approvals are at the heart of any property development process. This piece offers interesting insights to help you understand the building approval process. 

Building Approvals Are Mandatory 

You need to understand the building approvals concept to know why they are mandatory. So, what are building approvals? They are a set of certifications imposed by the government, local councils, and construction agencies to ensure all buildings are safe for occupants. For instance, the building code determines the building you can put up in a specific locality. It also details the structural features and amenities required in the building.

In some cases, it could also compel developers to use particular building materials. The primary role of the building code is to mitigate the impact of various risks. For example, commercial buildings should have fire control and response measures to prevent loss of life during a fire outbreak. Conversely, the code requires the building to have a reinforced foundation if the area is susceptible to flooding. If you flout these regulations, the building becomes a hazard to occupants and neighbouring buildings. For this reason, all buildings need approval before construction, during construction, and after completion. Although building approval is voluntary, the local council and other government agencies conduct regular inspections to assess compliance with these regulations. You risk heavy penalties if your building disregards the set standard. 

Building Approvals Significantly Affect Property Pricing  

Some developers could forego the building approval process to lower construction costs and complete the project faster. However, disregarding building approvals could significantly affect your ability to sell the property. Most buyers hire conveyancers and agents to help them conduct due diligence when purchasing a property. These professionals comprehend the building code and approval process. Therefore, they ask the seller to provide construction permits and building certificates to prove compliance with the local building laws. Without these permits, the conveyancer or real estate agent could commission a building inspection to evaluate compliance with the code. They could consider one of three alternatives if the building does not meet the minimum standards. First, they could ask the seller to lower the asking price since the structure requires improvements. They could also request the seller to conduct the improvements and get the building certified before the closing date. In severe cases, they ask their clients to back out of the deal. 

Contact a professional to learn more about building approvals.