If you plan to sell your home, one of the key decisions to consider is how to maximise its value. While property often appreciates in value over time due to market conditions, location, and natural demand, there are proactive steps you can take to boost its appeal and selling price even further. Strategic improvements can transform your property into a standout listing that attracts more buyers and drives up offers.

In this article, I explore what you need to know about renovation projects, focusing on what legal and administrative aspects should be considered to meet WA’s requirements.

Understanding restrictive covenants in WA

Restrictive covenants are legally binding clauses that limit how you can use or modify your property. These may be listed in the Title deeds and could include restrictions on building materials, property height, or permissible land use. Such covenants are common in new developments but can also apply to older properties in WA.

For instance, you might plan a large extension only to find that a restrictive covenant prohibits significant structural changes. Violating such clauses can lead to legal action or fines, which could have been avoided with a comprehensive review of the covenants.

How you should approach this:

• Reviewing your property’s Title documentation is a key step in the renovation process, as it can reveal any restrictive covenants that might limit your plans.
• Consulting a conveyancer or legal professional is recommended to interpret the covenants and provide guidance on permissible changes, ensuring compliance with legal requirements.
• If necessary, it is possible to pursue the amendment or removal of a covenant, though this typically involves legal procedures and may require the agreement of other stakeholders.

Securing lender consent

If your home is under a mortgage, notifying your lender about planned renovations may be necessary. While minor updates might not require their involvement, substantial renovations or structural changes often do. Lender consent ensures your upgrades align with property valuation standards and financial agreements.

Failing to secure this consent can impact the property’s insurability or resale value, as buyers may face difficulty obtaining a mortgage if the property has unapproved modifications.

What steps should you take:

• Notify your lender before beginning any significant work.
• Provide them with detailed plans and relevant approvals to streamline the process.

WA Guidelines for obtaining planning permission

In WA, planning permission is required for certain types of renovations and extensions. Projects like adding a second storey, building close to boundaries, or altering heritage-listed properties must go through the approval process. Additionally, properties in designated areas, such as bushfire-prone regions or conservation zones, may have stricter requirements. Some common scenarios requiring approval in WA are:

• Subdividing a property or creating dual occupancy.
• Constructing extensions that exceed zoning limits.
• Modifying a heritage-listed building.

Ignoring these requisites can result in enforcement action, including fines or orders to revert the property to its original state.

You should, therefore, consider the following actions to prevent it:

• Consult your local government authority (LGA) for planning guidelines.
• Submit a detailed application, including plans and supporting documents, for approval.
• Work with a registered builder familiar with WA’s planning and zoning regulations.

Building regulations and compliance

While planning approvals address the visual and zoning aspects of your project, WA’s building regulations focus on structural safety and technical standards. These regulations cover everything from plumbing and electrical systems to fire safety and energy efficiency. For instance, the type of work requiring compliance may include alterations such as removing load-bearing walls, installing new plumbing systems or major electrical upgrades, adding extensions, or creating new rooms.

Remember, non-compliance can compromise the safety of your home and affect its resale value.

What you should do to stay compliant:

• Engage a registered builder or contractor licensed in WA.
• Obtain necessary building permits through your LGA.
• Arrange for inspections to verify compliance throughout the project.

Protecting your renovation investment

Standard home insurance policies often exclude coverage during renovation projects, leaving homeowners vulnerable to significant financial losses from accidents, theft, or damage that may occur during construction. When planning renovations, it is advisable to inform your insurer, as adjustments to your policy may be necessary to account for the increased risks associated with construction work. Coverage can often be enhanced by adding construction insurance, which offers protection for the duration of the project. Ensuring that all contractors engaged in the work carry their own liability insurance can prevent financial responsibility for accidents or damages caused during the project.

If the property is expected to remain vacant during the renovation, confirming continued coverage with the insurer is a smart move, as some policies may lapse or provide only limited protection after extended periods of vacancy. These considerations can help you safeguard your financial interests and maintain peace of mind throughout the renovation process.

Council rates and tax implications

In Western Australia, local governments levy council rates on property owners to fund community services and infrastructure. These rates are calculated based on the property’s valuation, which is determined by the state’s Valuer General. The valuation reflects either the property’s gross rental value or unimproved value depending on its classification.

Significant property improvements can increase your property’s Gross Rental Value (GRV), a key factor used by local councils to calculate rates. A higher GRV typically results in increased council rates, reflecting the enhanced value of the property. However, if your property becomes uninhabitable during extensive renovations, you may qualify for rate relief. Eligibility is determined by the scope of the renovations and whether the property remains unoccupied and unfurnished during this time.

To apply for rate relief, you should consider notifying your local council as soon as the property becomes uninhabitable. Supporting documentation, such as renovation plans and timelines, should be provided for a successful application. The council will review your case to determine eligibility for rate discounts or exemptions during the renovation period.

Consent from previous owners or developers

In some cases, home improvements may require consent from previous owners, developers, or local authorities. For example, former council homes or properties within specific housing developments might require approvals beyond standard planning permits.

To avoid issues:

• Check your Title deeds for conditions requiring additional consents.
• Seek legal advice to confirm compliance with all obligations.
• If you plan to sell your property after renovations, ensure all improvements comply with WA’s legal requirements. Prospective buyers and their solicitors will scrutinise planning permits, building compliance certificates, and Title records during the sale process.
• Ensure all necessary permits and approvals are documented.
• Obtain retrospective approvals for unpermitted work, if needed.
• Consider an insurance indemnity policy to address minor compliance gaps, though it’s best to avoid these issues upfront.

Navigating neighbour disputes and environmental compliance

Renovations that involve shared boundaries or walls in Western Australia may agreements with neighbouring property owners to prevent disputes and clarify responsibilities. The Building Act 2011 mandates that construction work must not adversely affect adjacent properties without the consent of the affected landowners or a court order.

These agreements help outline the responsibilities and rights of each party, minimising the risk of conflicts during or after the renovation process. Additionally, projects that could affect protected areas, such as the removal of native vegetation or alterations to watercourses, must comply with strict environmental regulations. The Environmental Protection Act 1986 governs these activities, requiring permits unless specific exemptions apply.

Therefore, i’s essential to consult with your neighbours early in the planning stages to address any concerns and secure their agreement where necessary. For projects located in environmentally sensitive areas, working with specialists who understand local regulations is crucial to ensure compliance and avoid potential penalties.

How WA Settlement Services can help

At WA Settlement Services, our experienced team can provide you guidance on the type of legal assistance you should seek to help you deal with aspects such as:

• Title updates − ensuring changes to the property are legally recorded.
• Council liaison − navigating approval processes for renovations or rebuilds.
• Builder contract review − protecting your interests in agreements with contractors.
• Compliance assistance − managing zoning, heritage, or easement requirements.

In summary,

Home improvements in Western Australia provide a valuable opportunity to enhance your property’s value, but success depends on understanding and complying with the state’s legal requirements. Securing the appropriate permits, following building regulations, and addressing financial and environmental considerations are crucial steps to avoid costly delays and protect your investment.